Markets close higher but trim sharp early gains amid Iran-Israel tensions

Indian benchmark indices ended marginally higher on June 24 in a volatile trading session that was dominated by sharp intra-day swings and conflicting geopolitical cues. Both the Sensex and Nifty saw dramatic reversals after coming close to 2025 highs in early trade, only to retreat as fresh hostilities flared between Iran and Israel. The BSE Sensex closed 158 points higher at 82,055, while the NSE Nifty 50 rose 72 points to settle above the 25,000-mark at 25,044.

However, both indices gave up significant portions of their early gains. The Sensex had surged over 1,122 points to hit 83,018, while the Nifty climbed 346 points to reach 25,317, buoyed by global optimism following the announcement of a ceasefire by US President Donald Trump.

Geopolitical reversal stalls rally

The early rally mirrored strength in global markets, falling crude prices, and improved risk sentiment after Trump brokered a temporary ceasefire between Iran and Israel. Oil prices sank to a two-week low, with Brent crude falling to $69 a barrel—a major piece of good news for oil-import-dependent India. Domestic airline and paint stocks like IndiGo and Asian Paints rose, while OMCs like BPCL and HPCL also gained.

However, optimism faded swiftly after reports emerged that Iran had launched fresh missile strikes on Israel, violating the ceasefire. Israel responded with a threat of “high-intensity strikes” on Tehran. The market reacted sharply—the Sensex plunged more than 1,100 points from the day’s peak, while the Nifty fell over 270 points from its intra-day high. Adding to the volatility was the weekly derivatives expiry, further intensifying intraday fluctuations.

Sectoral moves, broader market strength

Despite the volatility, broader market indices outperformed. The Nifty Midcap index gained 416 points to close at 58,822, while the Nifty Smallcap also posted gains. On the sectoral front, except Oil & Gas and Media, all other indices ended in the green.

Nifty PSU Bank emerged as the top gainer, driven by strong performances from Canara Bank, Union Bank, Indian Overseas Bank, and UCO Bank. Other sectoral indices, including Nifty Metal, Auto, FMCG, Pharma, Realty, and Consumer Durables, rose up to 1 per cent.

Among individual stocks, Adani Ports, Tata Steel, UltraTech Cement, Kotak Mahindra Bank, and Titan led the gains on the Sensex. On the flip side, Power Grid, Trent, NTPC, HCL Tech, and Maruti were among the top laggards. Defence stocks, including BEL and Garden Reach Shipbuilders, witnessed profit-booking and fell sharply after outperforming in the past few sessions.

Meanwhile, the rupee posted its best session in a month, rising 75 paise to 86.03 (provisional) against the dollar, supported by lower crude prices and improved global sentiment.

Analysts caution that geopolitical tensions and global uncertainty could continue to influence market sentiment. While the ceasefire had briefly revived risk appetite, its fragile nature and broader macro concerns, including US trade policy and upcoming Q1 earnings, are likely to keep traders on edge.