- Indian equities opened higher after US announced a ceasefire between Iran and Israel
- BSE Sensex rose over 750 points; Nifty 50 gained more than 270 points in early trade
- Oil prices dropped to a one-week low, Brent crude fell 2.9% to $69.40 a barrel
Indian equities opened higher on Tuesday after US President Donald Trump announced a ceasefire agreement between Iran and Israel.
The BSE Sensex jumped by more than 750 points, while the Nifty 50 rose by over 270 points in the early trade. Sensex was at 82,670 points and BSE at 25,200 as of 9:30 am.
All 13 major sectors opened higher. The broader mid- and small-caps added about 0.9% each.
The benchmark Nifty and Sensex indexes had slipped about 0.6% each on Monday, a day after the US bombed three Iranian nuclear sites amid rising tensions in the Middle East.
Oil Prices Drop
Oil prices also dropped to a one-week low after the ceasefire announcement. Brent crude futures were down $2.08, or 2.9%, at $69.40 a barrel around 9 am, after earlier tumbling more than 4% and touching its lowest level since June 11.
"If the ceasefire is followed as announced, investors might expect the return to normalcy in oil," Priyanka Sachdeva, a senior market analyst at Phillip Nova, told Reuters.
"Moving forward, the extent to which Israel and Iran adhere to the recently announced ceasefire conditions will play a significant role in determining oil prices," she added.
Iran is OPEC's third-largest crude producer, and the easing of tensions would allow it to export more oil and prevent supply disruptions.
Israel-Iran Ceasefire
Donald Trump announced that Israel and Iran have fully agreed to a ceasefire, adding that Tehran will begin the ceasefire immediately, followed by Israel after 12 hours.
Donald Trump announced a complete ceasefire between Israel and Iran, 12 days after the worst-ever conflict between the two Middle-East countries started, prompting fears of further escalation in the war-torn region.
There, however, was no official confirmation on the truce from Israel. The Israeli military said two volleys of missiles were launched from Iran towards Israel in the early hours of Tuesday.
The conflict began on June 13 when Israel carried out attacks on Iran's nuclear facilities, alleging Tehran was getting close to obtaining a nuclear weapon.
On Sunday, the US forces also joined the Israeli military campaign and bombed three of Iran's main nuclear sites.
