Indian Stock Markets Surge as Geopolitical Tensions Ease

India's stock markets reached their highest closing levels in 2025, driven by easing geopolitical tensions in the Middle East and a moderation of crude oil prices. The BSE Sensex gained 700.40 points, while the NSE Nifty rose by 200.40 points. Favorable domestic conditions also buoyed investor sentiment.

India's equity markets soared to their highest closing levels in 2025, driven by a reduction in geopolitical tensions in the Middle East. On Wednesday, the BSE Sensex rose by 700.40 points or 0.85 percent to close at 82,755.51, while the Nifty 50 at the National Stock Exchange climbed 200.40 points or 0.80 percent to finish at 25,244.75.

Analysts attribute the bullish market sentiment to the de-escalation in regional tensions and a steadying in crude oil prices. Vinod Nair, Head of Research at Geojit Investments, pointed out the continued strong performance of large-cap stocks, particularly in the IT and automotive sectors, supported by a robust dollar and increased risk appetite from investors.

Additionally, a positive monsoon forecast and easing inflation on the domestic front have further fueled optimism. Despite the market's overall upward trajectory, defense stocks took a hit, falling by 2 percent. Nevertheless, key sectors like auto, consumer durables, IT, telecom, healthcare, and media saw gains of 1 to 2 percent.

(With inputs from agencies.)