Indian equity benchmark indices Nifty and Sensex soared on Tuesday morning (June 24), following the announcement of a ceasefireceasefire between Iran and Israel by US President Donald Trump, which eased crude oil prices.
The BSE Sensex jumped a little over 955 points to 82,852.62, while the NSE Nifty surged 286 points to 25,257.95 in morning trade. Riding the wave was Adani Ports and SEZ Ltd.
Adani Ports, the biggest gainer on the Sensex, soared by 4.7 per cent to hit as high as ₹1,418.85 per share on the BSE, as it coincided with parent conglomerate Adani Group’s AGM headed by Gautam Adani.
Other major benchmark gainers were UltraTech Cement, L&T, Tata Motors, Mahindra and Mahindra, SBI, and Tata Steel.
Brent crude prices were down by almost 2.9 per cent to $69.43 a barrel as the Iran-Israel tensions eased for the moment.
On Tuesday night, US President Donald Trump announced a “complete and total ceasefire” between Iran and Israel. This came at the heels of a “limited” missile strike by Iran on a Qatar base of the US military. With Trump announcing the “end” of “The 12 Day War”, crude oil prices globally eased.
Tuesday morning saw major Asian markets—South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng indices jumping sharply higher as the ceasefire news continued the positive momentum from US markets to the rest of the world.
This led to foreign inflows returning to Indian markets on Tuesday despite the FII outflow of ₹1,874.38 crore on Monday.
Adani stocks see green
Adani Enterprises stock was also up at least 2.3 per cent, hitting a morning high of ₹2,544.0 apiece on the NSE. Earlier in the day, Adani Enterprises unit Adani Airports Holdings Ltd (AAHL) announced that it secured a $1 billion financing from global investors to fund construction of the Mumbai International Airport.
“The transaction was led by Apollo-managed funds, with participation from a syndicate of leading institutional investors and insurance companies which included BlackRock-managed funds, Standard Chartered among others, underlining global confidence in India’s Infrastructure opportunity and Adani Airports’ operating platform,” read the AAHL statement.
While the uptick in Adani stocks helped matters, the major differentiator was the decline in crude benchmarks due to global cues.
