Sensex Today | Nifty 50 Today | Indian Stock Market: Domestic stock markets rallied around 4 per cent on Monday after the ceasefire agreement between India and Pakistan and as the US and China reached a trade deal.
The BSE’s 30-share Sensex surged 3.74 per cent, or 2,975.43 points, to settle at 82,429.9. The NSE’s Nifty 50 rose 3.82 per cent, or 916.7 points, to close at 24,924.7. This was the largest single-day gain for both the indices since February 1, 2021.
The market capitalisation, or the total value of all listed shares, of BSE-listed companies increased by Rs 16.15 lakh crore to Rs 432.56 lakh crore.
“Markets were on a roll and turned buoyant after the news of a ceasefire between India and Pakistan, as that removes some kind of apprehension that was caused by last week’s tension between the two nuclear-armed neighbours,” said Prashanth Tapse, senior VP (Research), Mehta Equities Ltd.
Investors turned risk-on with safe-haven gold taking a beating while equities turned out to be clear winners on the back of broad-based buying support.
“The ceasefire between India and Pakistan has paved the way for a sharp rally in the market. The prime mover of the rally will be the FII buying which has been sustained for sixteen continuous days except last Friday when the conflict escalated,” said VK Vijayakumar, chief investment strategist, Geojit Investments Ltd.
On Monday, foreign portfolio investors (FPIs) net purchased Rs 1,246.48 crore, while domestic institutional investors (DII) bought Rs 1,448.37 crore worth of equities, according to the BSE’s provisional data.
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Domestic macros like expectations of high GDP growth and revival of earnings growth in FY26 and declining inflation and interest rates augur well for the resumption of a rally in the market, he said.
On Sunday, the White House said that the US and China have reached a trade deal in Geneva after the two-day long trade talks between the two countries.
“With talks on global tariff seen on a smooth path, equities could gain traction going ahead,” Tapse said.
Analysts said that if the US-China trade deal materialises, it would be good for the global economy. However, from India’s standpoint, it would be slightly disappointing since the country was expecting a trade deal with the US ahead of many nations, including China.
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On Monday, all major sectors contributed to the rally, with IT, realty, and metals leading the gains. Nifty IT gained nearly 7 per cent and Nifty Metal rose 5.86 per cent. The broader markets witnessed heavy buying, with each advancing nearly 4 per cent.
The NSE companies that gained the most included Adani Enterprises (7.73 per cent), Infosys Ltd (7.69 per cent), Shriram Finance (7.16 per cent), Trent Ltd (6.79 per cent) and Wipro Ltd (5.99 per cent).
Experts believe that though the momentum remains strong, the market may enter a phase of consolidation in the near term as investors await concrete signs of earnings growth. In the meantime, mid and small caps are expected to maintain the optimism in the broad market.
“In light of the widespread buying momentum, a ‘buy on dips’ strategy remains prudent. Investors should focus on selecting stocks based on the relative strength of specific sectors and prevailing market themes,” said Ajit Mishra, senior vice president (Research), Religare Broking Ltd.