Sensex, Nifty rebound sharply; investor wealth rises by Rs 4.3 lakh crore

Domestic equity markets bounced back on Tuesday, recovering from Monday’s steep losses, as hopes of easing geopolitical concerns lifted investor sentiment. Benchmark indices Sensex and Nifty rallied after US President Donald Trump announced that Israel and Iran had agreed to a temporary ceasefire, fuelling hopes of a potential de-escalation in Middle East tensions.

Last checked, the BSE Sensex surged 828 points, or 1.01 per cent, to 82,724, while the NSE Nifty gained over 230 points, or 0.92 per cent, to trade at 25,201. The uptick was largely broad-based, driven by buying interest in major index heavyweights such as Reliance Industries, HDFC Bank, Larsen & Toubro (L&T), ICICI Bank, Mahindra & Mahindra (M&M), State Bank of India (SBI) and Adani Ports.

According to President Trump’s post on Truth Social, both countries had “fully agreed” to a 12-hour ceasefire, after which “the war will be considered ended.” However, Iran refuted the claim. Iranian Foreign Minister Seyed Abbas Araghchi, in a statement on X (formerly Twitter), denied any formal agreement but indicated that Tehran would halt further military action if Israel ceased its offensive by 4 am local time.

Despite the lack of clarity from Iran, the market reacted positively to the prospects of peace. The partial relief from geopolitical stress helped investors regain confidence, with over Rs 4.3 lakh crore added to the BSE market capitalisation (m-cap) during the session. The total market value of listed companies on the BSE stood at Rs 452.12 lakh crore, up from Rs 447.82 lakh crore in the previous session.

“The market appears to be shifting towards a bullish bias, supported by a drop in oil prices, which indicates potential de-escalation in Middle East tensions,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities.

Sectors such as banking, financials, automobile and energy led the recovery, while broader markets also saw decent gains. Analysts remain cautiously optimistic, advising investors to monitor global developments closely.