Sensex Rallies Over 2,100 Points; Nifty Soars Past 24,650 Amid India-Pakistan Ceasefire

On Monday morning, the Sensex and Nifty jumped over 2.7% after India and Pakistan agreed to a ceasefire, after four days of war.

The Sensex had increased by 2,185 points, or 2.75%, at around 10:11 AM, to reach 81,640.01, while the Nifty gained 672.80 points, or 2.80%, to 24,680.80.

Market observers pointed out that India's markets and economy have been incredibly resilient, frequently resolving external shocks and geopolitical uncertainties. This is due to a strong, domestically-supported economy that insulates itself from international challenges, proving that even the most severe crises will ultimately recede.

Prashanth Tapse, Mehta Equities' Senior VP (Research), said, "A thaw in relations between India and Pakistan is likely to initiate a sharp rebound in the Nifty in early Monday trading. But any breach of the ceasefire agreement by Pakistan may possibly dampen bullish sentiments."

Experts also pointed out that India's emphasis on negotiating trade agreements is consolidating its international business connections, supporting the country in broadening its exports, drawing constant foreign investments, and improving its competitiveness. This, coupled with balanced global relations and strong alliances, makes for a more stable investment climate, HDFC Securities' Head of Prime Research Devarsh Vakil said.

Major global indexes ended the previous week with mixed results. The announcement of a trade deal between the U.S. and the UK, along with reports of trade talks between U.S. and Chinese officials in Switzerland, sparked optimism among investors and set the stage for broader negotiations and tariff reductions.

Among the leaders in the Sensex pack were Adani Ports, Bajaj Finance, Axis Bank, Eternal, Power Grid, NTPC, Bajaj Finserv, Tata Steel, L&T, and SBI, while Sun Pharma alone was among the major losers.

In the Asian markets, China, Hong Kong, and Seoul registered positive movement, while Japan recorded a fall.

On the domestic front, during the previous session of trading on Friday, the Dow Jones lost 0.29% to close at 41,249.38, the S&P 500 declined 0.07% to 5,659.91, and the Nasdaq closed at 17,928.92.

As far as institutional activity goes, foreign institutional investors (FIIs), which had been net buyers for the sixteenth successive sessions, sold on May 9, transferring equities valued at Rs 3,798.71 crore. Domestic institutional investors (DIIs), in contrast, continued to be net buyers, pumping in Rs 7,277.74 crore on the day.