Sensex surges 900 points as investors cheer Israel-Iran ceasefire
What's the story
The Indian equity benchmark indices, Nifty50 and BSE Sensex, witnessed a major surge on Tuesday. The rally was triggered by US President Donald Trump's announcement of a ceasefire between Iran and Israel. At 10:32am, Nifty was trading at 25,246, up by 274 points or 1.1%. Meanwhile, BSE Sensex surged over 900 points to trade at 82,800—an increase of over 1%.
Market reaction
Global market trends
The announcement of the ceasefire led to a rally in global markets and a drop in the dollar. Oil prices plummeted as fears of supply disruptions eased, providing a boost to risk assets. The yen and euro strengthened due to their dependence on oil imports, while US Treasury yields rose slightly amid changing expectations for Federal Reserve rate cuts.