At 9:17 am, the BSE Sensex was up 910 points or 1.11% at 82,782, while the Nifty50 rose 262 points or 1.05% to 25,232.
Meanwhile, the market capitalisation of all listed companies on BSE surged by Rs 4.43 lakh crore to Rs 452.25 lakh crore.
On the sectoral front, Nifty Bank, Financial Services, Auto, IT, Metal, PSU Bank, Consumer Durables, and Oil & Gas indices rose between 1 and 2% in early trade. In the broader market, the Nifty Midcap and Smallcap indices also opened nearly 1% higher.
Factors behind’s stock market surge today:
1. Ceasefire Between Iran and Israel
The rally was triggered by reports that Iran and Israel have agreed to a phased ceasefire, following nearly two weeks of escalating military tensions. The development was announced by US President Donald Trump, who credited Qatar for facilitating the negotiations.
However, tensions remain on the ground. The Israeli military said early Tuesday that it had detected another wave of missiles launched from Iran. Sirens were activated across several cities, including Jerusalem, where residents took shelter in underground parking lots after receiving mobile alerts.
The Israel Defense Forces (IDF) confirmed the alerts in a social media post, stating that sirens were heard following the missile launch. According to AP reports, notifications were sent to citizens’ phones ahead of the missile barrage’s expected arrival.
2. Oil Prices Slide
Oil prices dropped over 3% on Tuesday, extending the 9% slide seen on Monday after Iran’s limited retaliation against a U.S. air base signaled a potential de-escalation of hostilities.
With the immediate threat to the crucial Strait of Hormuz shipping route appearing to ease, U.S. crude futures fell another 3.4% to $66.15 per barrel, the lowest level since June 11.
On Monday, oil prices had plunged nearly 6% after Iran launched missiles at a U.S. air base in Qatar in response to earlier American airstrikes on Iranian nuclear facilities.
A continued decline in crude oil prices would be a positive for India, which depends heavily on imports to meet its energy needs. Lower oil prices help ease inflationary pressures and narrow the fiscal deficit, offering relief to policymakers and consumers alike.