tradingkey.logo

INDIA STOCKS-Indian benchmarks trim gains as Israel orders response after Iran's ceasefire violation

ReutersJun 24, 2025 10:39 AM

- India's equity benchmark indexes trimmed some gains on Tuesday as Israel said it had ordered its military to strike Tehran after it violated a ceasefire announced earlier by U.S. President Donald Trump.

The Nifty 50 .NSEI closed 0.29% higher at 25,044.35 points and the BSE Sensex .BSESN rose 0.19% to 82,055.11 points.

Both indexes had risen as much as 1.3% earlier in the session to hit their highest levels in nearly nine months.

Israeli Defence Minister Israel Katz said on Tuesday he had ordered a forceful response after detecting missile launches from Iran following the start of the truce.

Iran said it had not violated the ceasefire.

"We are seeing profit booking in India at higher levels following the news of ceasefire violation. It is more of a sentimental trade," said Aamar Deo Singh, senior vice president at Angel One.

Crude oil futures were around $69 per barrel, up from $67.7 a barrel before the news of the ceasefire violation. However, they are still more than 3% lower compared to Monday's close.

"Investors are closely watching crude oil prices. In case there is no material spike in the same, we may see a bounce-back in the market," said Pankaj Pandey, head of retail research at ICICI Securities.

Higher crude oil prices are a negative for India, which depends heavily on imports, as they could fuel inflation and widen the fiscal deficit.

IT stocks .NIFTYIT, which rose more than 1% on Tuesday to lead gains, closed flat, while financials .NIFTYFIN also pared some gains, closing 0.7% higher.

The broader, more domestically-focused mid- .NIFMDCP100 and small-caps .NIFSMCP100 rose 0.7% each.

The broader market outperformed the benchmarks on Tuesday, showing the extent of investor interest in the segment, Angel One's Singh said, adding that expectations of improving earnings improvement in the next couple of quarters is helping these stocks.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Related Articles

KeyAI