Sensex surges 1,000 pts, Nifty tops 25,300 as Israel confirms ceasefire with Iran; PSU bank, auto stocks lead rally

Adani Ports, UltraTech Cement, Jio Financial Services, Larsen Toubro, and Adani Enterprises were the top gainers on the Nifty.

Benchmark indices Nifty and Sensex rallied further in the afternoon on June 24, buoyed by a major geopolitical relief after Israel agreed to a ceasefire with Iran. The truce lifted investor sentiment across the board, sparking sharp gains in PSU banks, metal, auto, and IT stocks. Broader markets joined the upmove, with both the Nifty Midcap 100 and Smallcap 100 indices climbing over 1 percent.

At 12:20 pm, the Sensex was up 1,045.47 points or 1.28 percent at 82,942.26, and the Nifty was up 318.45 points or 1.28 percent at 25,290.35. About 2601 shares advanced, 788 shares declined, and 130 shares remained unchanged.

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"President Trump’s announcement of a ceasefire in West Asia signals that the worst of the geopolitical tensions may be behind us. The sharp pullback in crude oil prices and a rebound in equity markets reflect hopes of a return to stability. With this, the Nifty—stuck in the 24,500–25,000 range—is poised for an upward breakout," says V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.

"However, whether the rally sustains will hinge on progress in trade negotiations. The current pause on reciprocal tariffs ends on July 9, making it imperative for bilateral trade agreements to be struck before then. As a result, market sentiment is likely to remain sensitive to developments on the trade front," he added.

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Sectoral indices traded mostly higher on June 24, reflecting strong market sentiment across the board. Nifty PSU Bank was the top gainer, jumping 2.5 percent, followed by Nifty Metal and Nifty Auto, which rose 1.98 percent and 1.76 percent, respectively. Other key gainers included Nifty Infra, Realty, and IT, each advancing over 1 percent. Banking indices also saw healthy gains, with Nifty Bank up 0.93 percent and Nifty Private Bank rising 0.76 percent. Broader market indices, Nifty Midcap 100 and Smallcap 100, climbed 0.87 percent and 1.10 percent, respectively. Meanwhile, India VIX edged lower by 2.14 percent to 13.75, indicating easing volatility.

Among individual stocks, shares of Adani Ports and Special Economic Zone rallied nearly 5 percent after the US brokered a ceasefire between Israel and Iran. The stock had come under pressure earlier due to safety concerns around its Haifa Port in Israel, following heightened tensions and missile attacks in the region. Adani Ports, which acquired a majority stake in Haifa Port for $1.18 billion in 2023, saw renewed investor interest as hopes of de-escalation lifted sentiment.

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Oil and gas stocks saw strong investor interest on Tuesday, June 24, and counters like IOCL, BPCL, and HPCL surged up to 5 percent after cooling tensions in the Middle East sent crude prices tumbling. U.S. President Donald Trump announced a likely ceasefire between Israel and Iran, which boosted hopes that the conflict would come to an end.

KPIT Tech shares tumbled 4 percent after the company said the outlook remains uncertain given the demand environment and tariff-related pressures. However, it added that it is betting on its latest acquisition to steady the ship. The company has approved the 100 percent acquisition of Caresoft’s Global Engineering Solutions business, a move it hopes will drive growth and sharpen its edge in key automotive segments.

"The Nifty ended down yesterday, but after a decent-sized rebound from the day's lows. Technically speaking, yesterday's price action was completely contained inside the previous day's, which means the market is in a state of some indecision given the over-month-long range it's been stuck in," Akshay Chinchalkar, Head of Research at Axis Securities said. He added that 25,222 matters on the upside, and 24,462 on the downside -- these levels define the boundaries of the pattern the Nifty is contained within. In this sideways movement, though, the percentage of stocks trading above their 50-day averages is shrinking, which means caution is advised until 25222 is intact. For the day, support lies at 24800. Global cues are firmly supportive for the day.

Adani Ports, UltraTech Cement, Jio Financial Services, Larsen Toubro, and Tata Steel were the top gainers on the Nifty. Laggards on the index included ONGC, NTPC, IndusInd Bank, Power Grid Corp and Bharat Electronics.

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