Sensex, Nifty Hit 2025 Highs as Ceasefire Boosts Market Sentiment

Indian equity markets extended their upward momentum for a third straight session on Thursday, closing at their highest levels so far in 2025. The rally was driven by easing geopolitical tensions and strong corporate earnings, which lifted investor confidence across sectors.

The benchmark BSE Sensex surged by 1,000.36 points, or 1.21%, to end the day at 83,755.87 — its highest closing since October 2024. The NSE Nifty50 followed suit, climbing 304.25 points, also up 1.21%, to close at 25,549.

The market rally was primarily fuelled by news of a ceasefire agreement between Iran and Israel, a development that eased concerns in the oil-sensitive Middle East region. The truce helped stabilise global crude prices and bolstered risk appetite among investors, leading to a strong uptick in domestic equities.

The gains were broad-based but particularly strong in the financial and energy sectors. The Bank Nifty index scaled a new record high, driven by notable gains in HDFC Bank, which continued to impress investors with solid quarterly results and stable asset quality.

Reliance Industries Limited (RIL) also played a significant role in the day’s gains. Its market capitalisation crossed the ₹20 lakh crore mark, powered by its diversified presence in refining, telecom, and retail — all of which have shown resilient performance amid volatile global conditions.

Domestic institutional investors (DIIs) remained steady buyers throughout the session, encouraged by positive global cues and India’s improving macroeconomic indicators. Foreign portfolio investors (FPIs), while cautious, also showed renewed interest in Indian assets following the ceasefire announcement and stable economic outlook.

Oil prices saw some cooling, with Brent crude hovering around $82 per barrel, offering relief from inflationary pressure. Meanwhile, the Indian rupee appreciated slightly, closing near 81.10 against the U.S. dollar, supported by healthy foreign inflows and robust capital markets.

Analysts remain optimistic about the near-term outlook, citing easing geopolitical stress, sustained corporate performance, and improving domestic indicators such as Purchasing Managers' Index (PMI) readings. However, they advise investors to stay alert to external risks, including global inflation trends and central bank policy shifts, which could influence market volatility.

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