The benchmark indices have surged nearly 3 percent over the previous two trading sessions, with investors welcoming the easing of geopolitical tensions in West Asia after the ceasefire announcement made by US President Donald Trump on Sunday (local time).
At the opening bell on Tuesday, the BSE Sensex jumped over 400 points, while the NSE Nifty 50 traded above the 23,950 mark, reflecting strong buying interest across key sectors.
Financials, FMCG Lead Gains
Financial and FMCG stocks emerged as the primary drivers of the rally, signalling growing investor confidence and expectations of improved market stability.
Market participants believe the ceasefire could help ease concerns over disruptions to global trade and energy supplies, supporting risk appetite across emerging markets, including India.
Broader Market Remains Mixed
Despite the upbeat sentiment, broader market momentum remained subdued due to weakness in sectors such as metals, healthcare, cement and pharmaceuticals.
Analysts said investors continue to monitor sector-specific challenges and global developments even as overall market sentiment improves.
Why the Ceasefire Matters
The recent ceasefire between the United States and Iran has reduced fears of a wider conflict in the Middle East, a region critical to global oil supplies.
Escalating tensions had previously sparked concerns over rising crude oil prices, inflationary pressures and potential disruptions to international trade.
The easing of geopolitical risks has helped calm global markets, with investors shifting back towards equities and other risk assets.
For India, which imports a significant portion of its crude oil requirements, lower concerns over oil supply disruptions are seen as a positive development for both the economy and corporate earnings.