Sensex Surges 650 Points as Trump Calls Off Iran Strikes

Markets Open Strong on Geopolitical Easing

Indian stock markets opened with a bang on Monday, with the BSE Sensex surging over 650 points in early trade. The sharp upmove came after reports that US President Donald Trump had called off planned military strikes on Iran, defusing a potential flashpoint in the Middle East.

The Nifty, too, traded firmly in the green, tracking positive global cues. Broader market indices mirrored the strength, with buying visible across sectors.

Trump's Move Calms Nerves

Investor sentiment got a major boost after Washington decided to step back from the brink. The White House's decision to halt strikes on Iranian targets removed an immediate overhang that had kept markets on edge for days.

Oil prices, which had spiked on fears of supply disruption, cooled off, providing additional relief to import-dependent economies like India. A dip in crude prices is seen as a positive for corporate margins and inflation outlook.

Banking and Auto Stocks Lead Rally

Banking heavyweights were at the forefront of the rally, with private lenders and public sector banks posting strong gains. Auto stocks also accelerated, helped by the improved sentiment and expectations of steady demand.

IT and metal shares, however, were mixed as investors rotated funds into rate-sensitive and cyclical names. The broader market breadth was positive, with advances comfortably outpacing declines on the BSE.

Global Cues Supportive

Asian markets followed Wall Street's lead, where futures turned green on the news. The US dollar softened against major peers, while gold eased from recent highs as risk appetite returned.

Foreign institutional investors, who had been net sellers in recent sessions, are expected to turn buyers if the geopolitical situation remains stable. Domestic institutional buying has also been supportive.

What to Watch

Analysts say the market's next move will hinge on any fresh developments in US-Iran relations, as well as domestic triggers such as monsoon progress and corporate earnings. A sustained peace could push the Sensex towards record highs, but any escalation would quickly reverse gains.

Traders should keep an eye on crude oil prices and the rupee's movement for near-term direction. The coming sessions will clarify whether this rally has legs or is just a relief bounce.