Indian stock markets are likely to witness a sharp recovery in the upcoming session after a significant surge in GIFT Nifty during post-market hours on Monday, driven by easing geopolitical tensions in the Middle East.
GIFT Nifty climbed nearly 4%, reaching around 23,275, following remarks by US President Donald Trump indicating a temporary pause in planned military strikes on Iran. The announcement came after what Trump described as “constructive and productive” discussions between the United States and Iran aimed at resolving ongoing hostilities.
According to Trump, the US has decided to delay attacks on Iranian energy infrastructure for five days, with further action depending on the outcome of continued negotiations scheduled throughout the week.
The development sparked optimism among global investors, as hopes of de-escalation in the conflict reduced fears of prolonged instability in the oil-rich region. The earlier escalation had triggered heavy selling across global markets, including India.
Alongside the rally in GIFT Nifty, oil prices saw a sharp correction. Brent crude futures dropped significantly, falling close to $103 per barrel after earlier surging near $119, reflecting reduced concerns over supply disruptions.
The positive sentiment was also visible in global markets, with US stock futures witnessing a strong rally. Futures for the Dow Jones Industrial Average surged over 1,000 points, while Nasdaq and S&P 500 futures gained nearly 3% each, indicating a potential rebound in global equities.
Earlier on Monday, Indian markets had faced steep losses due to heightened geopolitical risks. The Sensex fell more than 1,800 points to close below 72,700, while the Nifty 50 dropped over 600 points to settle around 22,513. The selloff wiped out more than ₹14 lakh crore in market capitalisation on the BSE.
Market experts suggest that while volatility may persist until there is clearer confirmation of de-escalation, the recent correction could offer selective long-term investment opportunities.
The shift in sentiment comes after a tense period when the US had issued warnings to Iran regarding the reopening of the Strait of Hormuz, a crucial route for global oil shipments. Iran had responded with threats targeting key infrastructure across the Gulf region, intensifying market fears.
With diplomatic engagement now taking centre stage, investors are closely watching developments, expecting Indian markets to open on a positive note in the next trading session.
Originally published on 24×7-news.com.
