Ceasefire Boosts Indian Markets: GIFT Nifty Surges, Oil Prices Plunge

After a period of cautious trading marked by geopolitical jitters, the Indian stock market appears poised for a strong resurgence today. Early indicators from the GIFT Nifty show a remarkable uptick of over 200 points, hinting at an opening that could challenge the highs seen around June 12. This positive shift comes as a much-needed breath of fresh air for the Nifty, which has endured a challenging streak, declining in four out of its last five trading sessions.

The primary catalyst for this sudden wave of optimism is the breaking news from the US, where President Donald Trump announced a ceasefire agreement between Israel and Iran in the early hours of Tuesday, Indian time. The cessation of hostilities in the Middle East has immediately eased fears that had been casting a long shadow over global markets.

For days, the escalating tensions had kept the Nifty from decisively breaking past its June 11 peak of 25,222. The looming threat of surging oil prices, a direct consequence of conflict in the oil-rich region, had significantly dampened bullish sentiment. However, with the ceasefire now in effect, crude oil prices have taken a dramatic dive. West Texas Intermediate (WTI) crude has fallen to around $65 per barrel, while Brent crude has retreated to $70 per barrel. This drop is particularly beneficial for India, a nation heavily reliant on oil imports, as lower crude prices directly translate into reduced import bills and a more favorable economic outlook.

With the geopolitical storm seemingly receding, market focus is expected to swing back to fundamental business drivers. Analysts anticipate that the broader markets will once again take center stage, having demonstrated their resilience even during Monday's volatile session, when the Nifty itself shed 150 points to close below the 25,000 mark.

Looking ahead, traders will be closely watching a couple of key levels for the Nifty. The immediate hurdle for the index to overcome will be last Friday's high of 25,136. Should it successfully breach this, the next significant resistance point will be the June 12 high of 25,196. Beyond the broader market movements, investors might also want to keep an eye on individual stocks like Dixon Technologies, following news of its promoter selling a stake on Monday.

The current market sentiment reflects a palpable sense of relief and renewed confidence. As the dust settles on the international front, Indian equities are gearing up for what promises to be an engaging trading session, potentially paving the way for a return to upward momentum.