हिंदी में पढ़ने के लिए मेनू बार से हिंदी भाषा चयन करें।
🔶 Introduction
The stock market isn’t influenced only by quarterly results or central bank policy—it also reacts sharply to global political events. On June 24, 2025, Indian markets witnessed a dramatic swing: a strong rally in the morning after the Iran-Israel ceasefire announcement, followed by a steep decline by the end of the day.
This article explains in detail:
- Why the ceasefire news sparked a market rally
- Which sectors benefited the most
- Why the market fell later and what investors should do now
🟢 Why Did the Market Rally After Ceasefire?
🔹 Relief from Geopolitical Tensions
For weeks, tensions between Iran and Israel had rattled global markets. Since India imports most of its crude oil, any Middle East conflict directly impacts it.
The ceasefire gave investors hope that crude supply would stabilize, inflation would come down, and economic uncertainty would reduce.
🔹 Drop in Crude Oil Prices
Following the ceasefire, Brent crude fell to $78.5 per barrel, one of its lowest levels in weeks. Lower oil prices signal:
- Lower import costs
- Controlled inflation
- Improved corporate profitability
🔹 Return of Foreign Investors
FIIs (Foreign Institutional Investors), who were selling off amid tension, turned buyers. This was due to:
- Renewed stability
- Softer dollar
- Lower oil prices
🔹 Global Markets Rally
It wasn’t just India. Major global indices across Asia, Europe, and the U.S. rallied on the back of easing geopolitical risk. Indian markets mirrored this global sentiment.
Which Sectors Gained the Most?
| Sector | Estimated Gain (%) | Top Stocks |
| Oil & Gas | +2.4% | ONGC, BPCL, Reliance |
| Defense | +3.3% | BEL, HAL |
| Aviation | +3.7% | IndiGo, SpiceJet |
| Banking | +1.8% | ICICI Bank, SBI |
| Infra & Ports | +2.1% | L&T, Adani Ports |
Many of these stocks even touched 52-week highs during early trading as investors gained confidence in a more stable outlook.
Why Did the Market Fall Later?
Sentiment Reversed in the Afternoon
🔸 Ceasefire Violation Concerns
Reports emerged that Israel accused Iran-backed groups of violating the ceasefire, raising doubts about peace holding up.
This spooked investors, leading to profit booking and cautious trading.
🔸 Oil Prices Rebounded
With fresh tensions, Brent crude rebounded to $81 per barrel, reigniting concerns of rising import bills and inflation.
🔸 FII Profit Booking
After early morning buying, foreign investors booked profits amid the renewed uncertainty.
🔸 Weak Global Cues
U.S. market futures and European indices turned weak, further pulling down Indian sentiment.
📉 Market Performance Snapshot
- Sensex: Fell from the day’s high by 511 points, closed at 81,897
- Nifty 50: Dropped 140 points, ended at 24,972
- Market cap loss: Approx. ₹1.2 lakh crore wiped out by close
📘 Investor Takeaways
- Don’t Panic Sell – Such sharp moves are normal during geopolitical events. Long-term investors should remain patient.
- Watch Global Headlines – Ceasefire developments will continue to impact market direction.
- Track Oil Prices – Rising crude can hurt India’s trade balance and inflation.
- Choose Sectors Wisely – Defensive sectors and low-debt companies may offer stability in uncertain times.
The Iran-Israel ceasefire triggered massive optimism in the Indian stock market, leading to a record rally in early hours. However, fears of renewed conflict and ceasefire violations erased gains by the end of the day.
This volatile swing is a clear reminder that global political stability has a direct impact on investor wealth.
Until the ceasefire holds firmly, markets will remain highly sensitive to global news.
