The benchmarks closed with modest gains on Tuesday after a highly volatile session that saw sharp swings in both directions as investors reacted to changing geopolitical developments in West Asia and a steep drop in crude oil prices.

The Sensex ended 158.32 points or 0.19 per cent higher at 82,055.11, after touching an intraday high of 83,018.16, while the Nifty50 settled 72.45 points or 0.29 per cent up at 25,044.35, with a day high of 25,317.70. Both indices had opened with significant gaps - Sensex at 82,534.61, against previous close of 81,896.79, and Nifty at 25,179.90, versus the previous close of 24,971.90.

“Initial gains in the domestic market, driven by the ceasefire announcement and sharp drop in crude prices, were short-lived as renewed geopolitical tensions in West Asia unsettled investor sentiment,” said Vinod Nair, Head of Research, Geojit Investments Ltd. “Adding to the uncertainty was heightened volatility due to expiry day dynamics.”

The markets witnessed dramatic reversals during the trading session, as early optimism gave way to caution. “It turned out to be an eventful day for market participants, as the benchmark index witnessed sharp swings in both directions, before finally closing with marginal gains,” noted Ajit Mishra, SVP Research at Religare Broking Ltd. “Initially, sentiment was buoyed by reports of a potential ceasefire between Iran and Israel, along with a sharp decline in crude oil prices. However, concerns resurfaced in the latter half, following reports of a possible ceasefire violation by Iran.”

Among individual stocks, Adani Ports emerged as the top gainer on the Nifty50, surging 2.89 per cent to close at ₹1,394.00. Other major gainers included Jio Financial Services, which jumped 2.85 per cent to ₹301.50, Shriram Finance was up 2.09 per cent at ₹675.50, Grasim advanced 2.06 per cent to ₹2,779.70, and Tata Steel rose 1.71 per cent to ₹155.03.

On the downside, ONGC was the biggest loser, declining 2.90 per cent to ₹244.09, followed by Power Grid Corporation dropping 1.43 per cent to ₹286.10. IndusInd Bank fell 1.01 per cent to ₹831.45, Trent declined 0.80 per cent to ₹6,071.00, and HCL Technologies slipped 0.72 per cent to ₹1,691.00.

The market breadth remained positive with 2,662 stocks advancing, against 1,339 declining, out of 4,144 stocks traded on the BSE. A total of 108 stocks hit 52-week highs, while 44 touched 52-week lows. Seven stocks were in the upper circuit and 10 in the lower circuit.

The sectoral performance was mixed, but largely positive. The Nifty PSU Bank index outperformed with a 1.40 per cent gain, while Nifty Metal added 1 per cent. Nifty Bank rose 0.72 per cent, Nifty Financial Services gained 0.73 per cent, and broader indices showed resilience, with the Nifty Midcap 100 up 0.71 per cent, and Nifty Next50 advancing 0.85 per cent. However, the Defence index was the worst performer, shedding 2.35 per cent.

“Today, the benchmark indices witnessed a volatile trading session. After roller-coaster activity, the Nifty ended 72 points higher, while the Sensex was up by 158 points,” said Shrikant Chouhan, Head, Equity Research at Kotak Securities. “Technically, in the backdrop of strong global sentiment, our market opened with a gap-up, but once again, it registered selling pressure at higher levels.”

The Indian rupee strengthened significantly, trading 0.78 higher at 86.01 against the US dollar. “Rupee traded stronger by 0.78 at 86.01, supported by a sharp 12 per cent drop in crude oil prices, which helped stabilise the currency from its earlier lows near 86.75,” explained Jateen Trivedi, VP Research Analyst at LKP Securities. “Anticipation of renewed FII inflows also added strength to the rupee.”

Technical analysts noted the market’s failure to sustain higher levels. “The market cheered on the news of a ceasefire agreement between Israel and Iran on the Tuesday opening, but Nifty failed to sustain the intra-day highs,” observed Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. “A reasonable negative candle was formed on the daily chart, with long upper shadow. Technically, this market action indicates a false upside break-out attempt.”

Looking ahead, market participants remain cautiously optimistic, while keeping a close watch on geopolitical developments and crude oil prices. “The sustainability of an uptrend will hinge on the strength of domestic earnings, with optimism surrounding the upcoming Q1 results, supported by favourable domestic macroeconomics,” Nair added.

Analysts expect the Nifty to maintain its positive bias above the 25,000 support level, with potential targets of 25,200-25,300 if momentum builds. However, a break below 25,000 could lead to further correction toward 24,850-24,800 levels in the near term.

Published on June 24, 2025