NIFTY50 tops 25,250 for first time in 2025, investors' wealth soars by ₹3.5 lakh crore; Here are factors behind Tuesday's surge

The NIFTY50 index touched an intraday high of 25,257.95, rising as much as 286 points or 1.15%. This is the first time that index has moved above 25,250 level for first time since October 4, 2024, as per NSE data. Bullish sentiment on Dalal Street was unleashed after ceasefire announcement by President Trump ignited a wave of buying interest for equities across globe and triggered a fall in crude oil prices.

Asian markets were trading higher after President Donald Trump announced Israel and Iran had agreed to what he called a “complete and total” ceasefire, easing fears that a conflict between the two adversaries might escalate, Bloomberg reported.

Trump, who made the surprise announcement on his Truth Social platform days after ordering airstrikes on Iran’s nuclear facilities, said the accord would begin around midnight US time and is aimed at a lasting end to the fighting.

Following this development stocks across Asia were witnessing strong buying interest as Japan's Nikkei rose 1.36%, Hong Kong's Hang Seng advanced 1.24%, Taiwan Weighted surged nearly 2% and South Korea's KOSPI jumped 2.71%.

Trump's ceasefire call

Trump announced on Monday a complete ceasefire between Israel and Iran, potentially ending the 12-day war that saw millions flee Tehran and prompted fears of further escalation in the war-torn region.

Israel, joined by the United States on the weekend, has carried out attacks on Iran's nuclear facilities, after alleging Tehran was getting close to obtaining a nuclear weapon.

"On the assumption that everything works as it should, which it will, I would like to congratulate both Countries, Israel and Iran, on having the Stamina, Courage, and Intelligence to end, what should be called, 'THE 12 DAY WAR'," Trump wrote on his Truth Social site.

Abbas Araqchi said early on Tuesday that if Israel stopped its "illegal aggression" against the Iranian people no later than 4 am.

Investors' wealth soars

Equity investors wealth soared by ₹3.52 lakh crore owing to a sharp surge in equity indices, data from BSE showed. Market capitalisation of all the companies listed on BSE jumped to ₹4,52,26,039 crore as against ₹4,48,73,819 as of Monday.

Buying interest was visible across board as all the major sector gauges compiled by the NSE were trading higher led by NIFTY PSU Bank index's over 2% gain. NIFTY Auto, Metal, Bank, Financial Services, Realty, Consumer Durables, IT and FMCG indices also rose between 0.65%-1.65%.

Broader markets were also witnessing buying interest as NIFTY Midcap 100 index rose 0.90% and NIFTY Smallcap 100 index advanced 1.11%.

Index heavyweights surge

HDFC Bank, Larsen & Toubro, Reliance Industries, ICICI Bank, Mahindra & Mahindra, Bharti Airtel and State Bank of India were among the top movers in the SENSEX. They collectively added nearly 500 points towards gain in the SENSEX.

Stocks in action

The ceasefire holds significance for Adani Ports, as Haifa Port in Israel serves as a crucial maritime hub, handling over 30% of Israel's imports. The port is owned by Adani Ports, which controls a 70% share.

KPIT Technologies in its mid-quarter business update said that its overall business environment continues to be uncertain with rising geopolitical concerns and ambiguity around the overall tariff scenario.

KPIT Technologies warned of slower pace of deal conversions going ahead.

The shares of OMC companies surged up to over 5% in the early trade.

NIFTY50 gainers and losers

As many as 46 shares in the NIFTY50 index were trading higher led by Adani Ports' 4% gain. Jio Financial Services, UltraTech Cement, Adani Enterprises, Larsen & Toubro and Shriram Finance also rose between 2.2-%-3.2%.

On the flipside, ONGC, NTPC, IndusInd Bank and Bharat Electronics were among the notable losers.

The overall market breadth was extremely positive as 2,798 shares were trading higher while 843 were declining on the BSE.