India-Pakistan Ceasefire Triggers 2,200-Point Surge in Sensex
India’s stock markets witnessed a strong rally on Monday as the BSE Sensex surged by 2,200 points and the Nifty 50 gained 700 points, marking a significant rise as the markets opened for the first time since India and Pakistan announced a ceasefire on Saturday evening.
Markets React to Ceasefire
The 30-share BSE Sensex opened 1,500 points higher, while the Nifty 50, comprising the country’s top 50 companies, gained 500 points within the first 15 minutes of trading. By 10:05 am, the Sensex had climbed 2,200 points, and Nifty was 700 points higher, reflecting strong investor confidence despite ongoing geopolitical concerns.
The India-Pakistan ceasefire was announced on Saturday evening after weeks of cross-border tensions, particularly in the wake of the Pahalgam terror attack. Although incidents of violation were reported shortly after the ceasefire, Sunday night remained largely peaceful, according to the Indian Army.
Why the Market is Rallying
Experts attributed the surge in Indian equities to a combination of factors. India’s economic resilience, coupled with its strong domestic fundamentals, provided a solid foundation for the market’s recovery. Analysts also highlighted positive global cues, including a breakthrough in the US-China trade negotiations.
US Treasury Secretary Scott Bessent confirmed that the US and China had made substantial progress in their trade talks, which fueled hopes of de-escalation in the ongoing tariff standoff. The news led to strong gains in Asian markets, with stock indices in Hong Kong, Shanghai, Sydney, Seoul, Taipei, and Wellington all opening in the green.
Strong Global Cues
While most Asian markets witnessed a rally, Tokyo remained flat. US futures also saw a significant rise ahead of the opening bell in New York, while the dollar gained strength. Oil prices increased amid speculation that easing global tensions would drive demand.
Investor Sentiment Remains Positive
Despite the recent India-Pakistan conflict, market experts noted that Indian equities showed impressive resilience, with limited losses during the period of heightened tensions. “India’s clear superiority in warfare and its inherent resilience supported by global and domestic macros worked in favour of Indian equities,” analysts explained.
The positive sentiment was further bolstered by the news of the US-China trade agreement, which reduced concerns about a global economic slowdown and boosted investor confidence across Asia.
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