Indian indices opened sharply higher with Sensex surging over 350 points and Nifty crossing 23,250 after Iran and Israel signalled a pause in hostilities. Oil prices eased, cutting input costs for airlines, refiners and transport firms while lifting sentiment across midcaps and smallcaps, which rose more than 1%. Renewed buying in defensives and IT names suggests foreign flows could return quickly once the ceasefire holds.

The Bear Case

The ceasefire remains fragile...