The Sensex and Nifty surged more than 2.7 per cent in Monday morning trade after India and Pakistan announced a ceasefire following four days of conflict.
As of 10:11 a.m., the Sensex was trading 2,185 points, or 2.75 per cent higher, at 81,640.01, while the Nifty jumped 672.80 points, or 2.80 per cent, to 24,680.80.
According to analysts, India’s markets and economy have shown remarkable resilience, consistently withstanding external shocks and geopolitical uncertainties.
This strength stems from a stable, domestically driven economy that helps shield it from global disruptions, reinforcing the belief that every crisis eventually comes to an end.
“A thawing of relations between India and Pakistan is likely to trigger a massive rebound for the benchmark Nifty in early Monday trades. That said, any fresh violations of the ceasefire agreement by Pakistan could keep bullish sentiments fragile,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
India’s ongoing efforts to negotiate trade deals are expected to strengthen global business ties, enhance export potential, attract steady foreign investment, and boost overall competitiveness. Combined with balanced global relations and strong international partnerships, this contributes to a relatively stable investment environment, noted Devarsh Vakil, Head of Prime Research at HDFC Securities.
Major indexes ended last week narrowly mixed. The recent trade deal announcement between the US and UK, along with reports of US and Chinese officials meeting in Switzerland over the weekend for trade discussions, paved the way for broader negotiations and tariff de-escalation, boosting investor sentiment, experts said.
Among the Sensex pack, top gainers included Adani Ports, Bajaj Finance, Axis Bank, Eternals, Power Grid, NTPC, Bajaj Finserv, Tata Steel, L&T, and SBI. The only stock in the red was Sun Pharma.
In Asian markets, China, Hong Kong, and Seoul were trading in the green, whereas Japan was in the red.
In the last trading session on Friday, the Dow Jones in the US fell 0.29 per cent to close at 41,249.38. The S&P 500 slipped 0.07 per cent to 5,659.91, while the Nasdaq closed at 17,928.92.
On the institutional front, foreign institutional investors (FIIs), after being net buyers for sixteen consecutive sessions, turned net sellers on May 9, offloading equities worth ₹3,798.71 crore. In contrast, domestic institutional investors (DIIs) remained net buyers, investing ₹7,277.74 crore on the same day.-IANS
