Domestic benchmark indices Nifty 50 and Sensex took a breather in the afternoon session on June 24, Tuesday, closing off the day's highs as conflict in the Middle East flared up again, dampening investor sentiment.

The Israeli military intercepted two missiles launched from Iran, according to an official from the Israel Defense Forces (IDF), cited in a CNN report. The interception came just hours after a ceasefire between Israel and Iran was declared “in effect” earlier in the day.

"In light of Iran’s blatant violation of the ceasefire declared by the President of the United States — through the launch of missiles toward Israel,  and in accordance with the Israeli government's policy to respond forcefully to any breach, I have instructed the IDF to continue high-intensity operations targeting regime assets and terror infrastructure in Tehran," Israeli Defence Minister Israel Katz said.

At close, the Sensex was up 158.32 points or 0.19 percent at 82,055.11, and the Nifty was up 72.45 points or 0.29 percent at 25,044.35. About 2570 shares advanced, 1289 shares declined, and 129 shares unchanged.

The broader market, led by the Nifty Midcap 100 and Nifty Smallcap 100, outpaced the frontline indices, closing 0.7 percent higher each despite coming off intraday highs. On the sectoral front, most sectors held onto their gains. The auto, PSU sank and metal indices traded firm, over half a percent in the green.

Strong buying interest drove the Nifty PSU Bank to rally over two percent in trade as investors piled their capital into shares of public lenders. The confidence in PSU banking stocks came after domestic brokerage HDFC Securities noted that the sector is seeing signs of a 'secular turnaround.'

Shares of defence companies declined sharply, ending a two-day winning streak, as investors booked profits amid signs of easing geopolitical tensions in West Asia.

The sell-off in defence stocks followed comments by former US President Donald Trump, who said a ceasefire had been reached between Israel and Iran, hinting at a potential resolution to the recent conflict. His statement also triggered a fall in global crude oil prices and eased fears of a broader regional escalation.

Analysts had earlier predicted that the ceasefire between the two nations would led to the benchmark Nifty 50 index breaking out of its month-long consolidation phase. However, with the latest developments, the frontline retreated from its highs, to reenter the 24,500-25,000 range.

On the technical front, Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities said the index continues to protect its critical support near 24,750–24,700, highlighting consistent buying interest at lower levels.

"A strong close above 25,250 would likely revive bullish momentum, potentially driving the index towards the 25,500 zone. On the flip side, any meaningful weakness will only surface if the index breaches 24,700—until then, pullbacks are expected to attract buying," he added.