Indian equity markets staged a sharp rebound on Monday, driven by reports of a संभावित ceasefire framework between the United States and Iran. The development boosted investor sentiment, triggering a rapid rally on Dalal Street and adding nearly ₹7 lakh crore to investor wealth in just about 85 minutes.
Markets Recover Strongly from Early Losses
After opening in the red, benchmark indices reversed course dramatically. The Sensex, which had fallen over 590 points in early trade, surged to trade 666 points higher at 73,985.86 by the afternoon. Similarly, the Nifty climbed 155 points to reach 22,868.80.
The turnaround was swift and significant, with the market jumping nearly 1,250 points from its intraday low. Market breadth remained strong, with a majority of stocks trading in the green.
Ceasefire Hopes Lift Sentiment
The primary trigger behind the rally was optimism surrounding a potential ceasefire between Iran and the US. Reports suggested that a framework to end hostilities and reopen the crucial Strait of Hormuz could be implemented soon. This raised hopes of easing geopolitical tensions and stabilizing global energy supplies—both key factors influencing market confidence.
Rupee Strength Adds Momentum
The Indian rupee also strengthened by 33 paise against the US dollar, reaching 92.85 during the session. A stronger rupee typically signals improved investor confidence and reduces import-related pressures, further supporting equities.
Banking and IT Stocks Lead Gains
Banking stocks saw strong buying interest, with both Nifty Bank and PSU Bank indices rising up to 2%. Improved loan growth outlook and attractive valuations after recent corrections drew investors back into the sector. Stocks like Bank of Maharashtra, Bank of India, and Bank of Baroda posted notable gains.
IT stocks also contributed to the rally, rising up to 1% on expectations of better-than-anticipated quarterly results. Heavyweights like TCS led the gains, as investors took advantage of recently corrected valuations.
Massive Wealth Creation in Minutes
The market rally translated into a sharp increase in overall market capitalization. From its intraday low, the BSE’s total market cap surged past ₹4.26 lakh crore within a short span, effectively generating gains of around ₹7 lakh crore for investors.
