The domestic stock market witnessed an outstanding rally on Monday, with the Sensex surging over 2,000 points and the Nifty climbing close to the 24,700 mark. This sharp rise came after a weekend of significant geopolitical developments, most notably a ceasefire agreement between India and Pakistan, which brought much-needed relief to investors after days of heightened border tensions.
Early in the trading session, the Sensex jumped as much as 2,089 points, or 2.62 per cent, touching an intraday high of 81,543.80. The Nifty also showed strong gains, rising by 669 points, or 2.78 per cent, to reach 24,677.30. By 9:59 am, the Sensex was up 2,270 points at 81,724.73, while the Nifty50 climbed 714 points to trade at 24,722.30. The overall mood on Dalal Street was upbeat, with investors welcoming signs of calm after a tense week.
Ceasefire and Positive Global Cues
The main trigger for this rally was the announcement of a temporary ceasefire between India and Pakistan. After intense cross-border drone and missile strikes, both countries agreed to halt all military actions on land, air, and sea with immediate effect. This de-escalation removed a major overhang on investor sentiment, historically known to weigh heavily on the markets during periods of conflict.
In addition to the ceasefire, positive global cues further boosted investor confidence. High-level trade talks between the United States and China in Switzerland signalled progress towards resolving long-standing tariff disputes, which supported global equity markets. Asian indices also rose, and Wall Street futures pointed upwards, reflecting optimism about a possible breakthrough in US-China trade relations.
Large-cap stocks led the rally, with Adani Ports, Axis Bank, Bajaj Finserv, Bajaj Finance, and NTPC among the top gainers, each rising between 3 and 4 percent in early trade. On the other hand, Sun Pharma was the only stock in the red, falling over 6 percent. The banking sector was particularly strong, with the Nifty Bank index up nearly 2 per cent at the open, led by Axis Bank and other financial stocks.
The combined market capitalisation of all companies listed on the BSE jumped by over Rs 11 lakh crore, reaching Rs 427.84 lakh crore, up from Rs 416.52 lakh crore in the previous session. This reflects the scale of investor wealth creation in just a single day of trading.
Market experts, however, advised investors to remain cautious and not get carried away by the euphoria. While the ceasefire has provided immediate relief, the situation remains fluid, and any fresh escalation could quickly reverse the gains. They also highlighted the importance of focusing on fundamentals such as corporate earnings, economic data, and global trade developments for long-term investment decisions.
