Markets cheer peace signals: Dalal Street rallies on ceasefire, Hormuz boost

Dalal Street opened with strong momentum on Tuesday. Investors rushed to buy equities after news of a US-Iran ceasefire broke. As a result, benchmark indices posted sharp early gains. The S&P BSE Sensex jumped over 2,500 points. At the same time, the NSE Nifty50 surged more than 700 points in early trade.

First, sentiment turned positive after the ceasefire announcement. The United States and Iran agreed to pause hostilities for two weeks. This move reduced immediate geopolitical risk. Consequently, investors returned to riskier assets like equities. In early hours, market participants added nearly ₹14 lakh crore in value.

Next, crude oil prices gave an additional boost. Oil had climbed above $110 in recent weeks due to rising tensions. However, prices quickly corrected after the truce. Brent crude slipped below $100 and hovered near $95. This decline eased inflation concerns for India, which imports most of its oil. Therefore, sectors sensitive to fuel costs gained traction.

Meanwhile, reopening of the Strait of Hormuz improved confidence further. This key route handles a large share of global oil shipments. With shipping likely to normalise, supply fears eased. As a result, investors bet on stability in energy markets.

On the ground, traders reacted swiftly. Buying spread across sectors, especially in aviation, infrastructure and financials. Shares of InterGlobe Aviation led the rally with strong gains. Larsen & Toubro followed with solid buying interest. Adani Ports and Special Economic Zone also moved higher, reflecting optimism around trade flows. In financials, Bajaj Finance and Bajaj Finserv posted notable gains.

However, not all stocks joined the rally. IT stocks showed mild weakness. Tech Mahindra slipped in early trade. Similarly, Infosys edged lower. This divergence reflected sector-specific concerns rather than broader sentiment.

Market experts highlighted a shift in outlook. Analysts noted that the ceasefire changed the near-term narrative. Lower crude prices improved India’s macro outlook. They also pointed to recovery potential in beaten-down financial stocks. In addition, sectors linked to oil—such as refineries, aviation and paints—could see sustained buying.

Looking at the background, rising tensions in West Asia had weighed on markets in recent weeks. Investors had turned cautious as oil prices climbed and conflict risks grew. Now, the ceasefire has reversed that trend, at least temporarily.

Still, caution remains. The truce lasts only two weeks. Any disruption or escalation could trigger volatility again. Traders continue to track diplomatic developments closely.

In conclusion, Dalal Street reflected global cues with a sharp rally. Falling oil prices and easing tensions drove optimism. However, the sustainability of this rally will depend on how long the ceasefire holds and whether talks lead to a lasting resolution.