Daijiworld Media Network - Mumbai
Mumbai, May 12: Domestic stock markets witnessed a powerful rally on Monday, driven by easing tensions between India and Pakistan and encouraging signals from US-China trade negotiations. The Sensex surged by more than 2,300 points, while the Nifty crossed the 24,700 mark for the first time.
The BSE Sensex soared 2,376.18 points, or 2.99%, reaching an intraday high of 81,830.65. Meanwhile, the NSE Nifty jumped 729.8 points, or 3.03%, touching 24,737.80.
Top gainers in today’s session included Adani Enterprises, Jio Financial Services, Trent, Shriram Finance, and Axis Bank, all of which benefited from a strong shift in investor sentiment.
Here’s what drove today’s market momentum:
1. India-Pakistan Ceasefire Agreement:
After a week of heightened military action under India's Operation Sindoor, both countries announced on Saturday that they had agreed to halt all military operations across land, air, and sea. The de-escalation was a major relief for markets, which often react sharply to geopolitical tensions.
"This significantly reduces a key geopolitical risk premium that was hanging over Indian markets," said Prashanth Tapse, Senior VP (Research) at Mehta Equities.
2. Progress in US-China Trade Talks:
A round of high-level trade negotiations between the US and China in Switzerland has raised hopes for a breakthrough. Both sides reported “important consensus” on several issues, including narrowing trade deficits.
China's Vice Premier He Lifeng announced that a joint statement would be released from Geneva, with indications of “good news for the world,” according to Vice Commerce Minister Li Chenggang.
3. Positive Global Cues:
Asian markets also posted gains, with South Korea’s Kospi, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng trading higher. US futures climbed over 2%, signalling strong investor confidence ahead of the expected joint US-China statement.
With two major global flashpoints showing signs of resolution, investors responded with renewed optimism, propelling markets to new highs. Analysts suggest this rally may mark a turning point if geopolitical calm and global trade improvements continue in the coming weeks.