GIFT Nifty jumps over 700 pts after Trump hints at end of strikes on Iran; Anil Singhvi explains what it means for D-Street

GIFT Nifty surged sharply on Monday evening, rising over 3 per cent after Donald Trump announced a temporary pause on planned military strikes on Iranian power infrastructure. The move signalled a possible easing of geopolitical tensions and lifted market sentiment after a weak trading session earlier in the day.

At around 4:40 pm, GIFT Nifty was up 685 points, or 3.05 per cent, at 23,150. Earlier, it had jumped as much as 730 points, or 3.25 per cent, to 23,195.

Trump delays strikes, signals talks

In a post on Truth Social, Donald Trump said the US is working towards a “complete and total resolution” of hostilities in the Middle East. He added that based on the “tenor and tone” of ongoing discussions, he has instructed the Department of War to postpone any strikes on Iranian power plants and energy infrastructure for five days.

The pause is conditional and depends on progress in negotiations, which are expected to continue through the week.

The announcement comes just ahead of Donald Trump’s earlier warning to strike Iranian power facilities if Tehran did not reopen the Strait of Hormuz.

Why markets are reacting

For unaware, the sharp rise in GIFT Nifty indicates that Indian markets may see a relief rally on Tuesday. The index often acts as an early indicator for domestic equities.

Markets had come under heavy pressure earlier on Monday due to escalating geopolitical risks and rising crude oil prices. The conflict in West Asia has now entered its fourth week, keeping investors on edge.

Markets had seen sharp sell-off

Benchmark indices ended sharply lower in the previous session. The Sensex fell 1,836.57 points, or 2.46 per cent, to close at 72,696.39. During the day, it had dropped nearly 1,975 points.

The Nifty 50 also declined 601.85 points, or 2.6 per cent, to settle at 22,512.65.

Weak global cues, rising oil prices, continuous foreign fund outflows, and pressure on the rupee had made investors risk-averse.

Donald Trump full statement on Iran Conflict

On Truth Social, he wrote, "I am pleased to report that the United States of America, and the country of Iran, have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East. Based on the tenor and tone of these in-depth, detailed, and constructive conversations, which will continue throughout the week, I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period, subject to the success of the ongoing meetings and discussions. Thank you for your attention to this matter! President Donald J. Trump"

Global relief rally likely after Trump signals de-escalation

Global markets are showing early signs of relief after Donald Trump hinted at possible de-escalation in the Iran conflict. The statement has lifted sentiment. Investors are now expecting a pause in hostilities.

According to Zee Business Managing Editor Anil Singhvi, the shift was expected. He said global pressure on the US had been rising due to high oil prices and prolonged uncertainty.

He added that the recent US stance was likely aimed at opening the door for talks, not extending the conflict. The strategy was to push negotiations while maintaining pressure.

Earlier in the day, markets were under pressure. Benchmark indices fell sharply. The Nifty 50 dropped heavily. Broader markets declined up to 4 per cent.

Sentiment improved after the latest update. Global futures turned positive. US futures, including Dow Jones Industrial Average futures, rose over 1,000 points. This signals a possible strong rebound.

Singhvi said such reversals are common. When panic eases, relief rallies can be sharp.

Indian markets may open higher

Indian markets are likely to open positive in the next session. Analysts expect a recovery, but gains may depend on further clarity.

Singhvi said the Nifty could move towards 23,000–23,150 if momentum sustains. However, he advised caution. Markets need confirmation before a clear trend forms.

Crude oil remains key trigger

Crude oil is still the biggest factor. Prices have corrected by about $10 from recent highs.

Experts say oil must stay below $90 for comfort. High oil prices remain a risk for inflation and growth.

Focus on Iran’s next move

The next trigger is Iran’s response. Markets are watching if it signals talks or takes a tougher stand.

Singhvi said Iran’s reaction will be decisive. A positive signal could support a sustained rally. Any escalation may bring back volatility.

For now, sentiment is cautiously positive. Investors are hopeful, but not fully convinced.