Global Markets Surge as Trump Announces Israel-Iran Ceasefire

On Tuesday, Indian stock markets opened with a remarkable rally following the announcement by US President Donald Trump of a ceasefire between Israel and Iran. The decision comes as a relief for global investors who faced heightened geopolitical tensions. The benchmark Nifty 50 climbed 208 points or 0.83% to open at 25,179.90, while the Sensex gained 637.82 points or 0.78% to reach 82,534.61.

Market analysts attributed the positive sentiment to the de-escalation of hostilities in the Middle East, allowing investors to refocus on upcoming global events that may influence market trends. Notably, the impending US tariffs deadline on July 9 remains a crucial marker, with potential resolutions spurring continued market growth. Banking expert Ajay Bagga remarked on the profound market reactions, including a sharp decline in crude oil prices and noticeable risk-on moves globally.

Despite the current optimism, Bagga highlighted uncertainties regarding President Trump's tariffs, his tax bill, and the Federal Reserve's next steps concerning interest rates. Meanwhile, broader market indices reflected the prevailing positive sentiment, with the Nifty 100, Midcap, and Small Cap indices each showing gains. Sectoral milestones were seen with notable rises in Nifty IT, PSU Banks, and Metal indices. Asian markets, including Japan's Nikkei, Hong Kong's Hang Seng, and South Korea's KOSPI, also witnessed substantial gains.

(With inputs from agencies.)