People work at the National Stock Exchange (NSE) stall during the Global Fintech Fest in Mumbai, India, August 29, 2024. REUTERS
June 24 (Reuters) – India’s equity benchmark indexes gained about 1% in early trade on Tuesday, reaching their highest levels since early October, as a ceasefire between Iran and Israel led to a decline in oil prices.
The Nifty 50 the BSE Sensex were up 1% each at 25,225.85 points and 82,743.91 points, respectively, as of 10:24 a.m. IST.
Twelve of the 13 major sectors rose, with oil marketing companies and airlines gaining the most as crude oil prices hit a one-week low. The broader mid-caps and small-caps added about 0.8% each.
U.S. President Donald Trump announced a complete ceasefire between Israel and Iran, potentially ending the 12-day war that prompted fears of further escalation in the region and briefly pushed oil prices to a five-month high on Monday.
A drop in crude oil price is a relief for India, which relies heavily on imports to meet its energy needs, as higher prices can fuel inflation and widen the fiscal deficit.
Indian Oil Corporation Bharat Petroleum Corporation and InterGlobe Aviation climbed 2.9%, 3.1% and 3.7%, respectively, and were among the top five Nifty 100 gainers.
Adani Ports and Special Economic Zone which owns and operates the Haifa port in Israel, rose 4% and was the top gainer on the benchmark indexes.
While Nifty has managed to surpass 25,000 points, the gains sustaining will depend on developments in U.S. tariffs and trade policies, said VK Vijayakumar, chief investment strategist at Geojit Investments.
Other Asian markets also rose on the day, with the MSCI Asia ex Japan index climbing around 2%.
Meanwhile, upstream oil companies Oil and Natural Gas Corporation and Oil India slipped about 2% and 4%, respectively, amid lower crude oil prices.
Reporting by Vivek Kumar M; Editing by Janane Venkatraman and Sherry Jacob-Phillips
