Indian stock markets witnessed a sharp rally on Monday after India and Pakistan announced a ceasefire following four days of border tensions.
The move significantly boosted investor confidence, lifting both benchmark indices sharply in the morning session.
By 10:11 AM, the Sensex had surged 2,185 points or 2.75% to 81,640.01, while the Nifty rose 672.80 points or 2.80% to reach 24,680.80.
The rally was broad-based, with most sectoral indices trading in the green.
Market analysts emphasised India’s strong economic fundamentals.
“India’s domestically driven economy continues to weather global and regional turbulence effectively,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities.
He added that while the ceasefire lifted sentiment, its sustainability remains crucial to prevent renewed volatility.
Devarsh Vakil, Head of Prime Research at HDFC Securities, pointed out that India’s ongoing trade negotiations and balanced diplomatic approach are strengthening its global competitiveness and attractiveness as an investment destination.
Last week, markets ended slightly mixed globally, but optimism returned after trade deal announcements between the US and UK, and weekend talks between US and Chinese officials in Switzerland.
These developments hinted at possible tariff de-escalation and broader trade cooperation, which in turn supported global investor morale.
In the Sensex pack, Adani Ports, Bajaj Finance, Axis Bank, Power Grid, NTPC, Tata Steel, and SBI were among the top performers.
Only Sun Pharma registered a loss, making it the session’s sole laggard at the time of reporting.
Across Asia, markets presented a mixed picture. Indices in China, Hong Kong, and Seoul were trading higher, while Japan was in the red during morning hours.
On the institutional side, foreign institutional investors (FIIs), after a 16-day buying streak, turned net sellers on May 9, offloading equities worth ₹3,798.71 crore.
In contrast, domestic institutional investors (DIIs) remained strong buyers, investing ₹7,277.74 crore.
The sharp market rebound suggests growing optimism, but experts caution that geopolitical developments and global trade negotiations will continue to play a vital role in shaping near-term market trends.
Stability in India-Pakistan relations and further progress in international trade talks could sustain the current bullish momentum.
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