New Delhi, May 12 (IANS) The understanding for a ceasefire between India and Pakistan brought cheers for investors who were richer by more than Rs 16 lakh crore in a single day — as Sensex and Nifty gained a massive nearly 4 per cent in a bull rally seen after February 2021.
The Indian stock markets delivered their best single-day performance in four years, as positive global and domestic cues boosted market sentiment.
At the close of trade, Sensex soared 2,975.43 points, or 3.74 per cent, to end at 82,429.90, while Nifty jumped 916.70 points, or 3.82 per cent, to finish at 24,924.70.
This was the second-biggest percentage gain for both indices in the last four years, with the only larger rally recorded on February 1, 2021, when the indices rose over 4.7 per cent.
The bull rally came amid a string of encouraging developments, including an understanding for a ceasefire between India and Pakistan, a breakthrough in US-China trade talks, and reports of peace negotiations between Russia and Ukraine.
These developments helped ease geopolitical tensions, improving the global risk appetite and lifting investor confidence.
All sectoral indices ended in the green, showing a broad-based recovery across sectors.
Even the Nifty Pharma index, which had opened with a 2 per cent loss after US President Donald Trump’s comments about slashing drug prices by up to 80 per cent, managed to close 0.15 per cent higher as the market shrugged off the concerns.
Leading the charge were the Nifty IT and Nifty Realty indices, which rose 6 per cent and 7 per cent respectively. Midcap and smallcap stocks also joined the rally, outperforming the broader market with gains of 4.1 per cent each.
The total market capitalisation of all companies listed on the BSE climbed to Rs 432.47 lakh crore, up from Rs 416.52 lakh crore in the previous session — a gain of Rs 16 lakh crore in a single day.
According to analysts, markets opened the week on a strong footing, driven by supportive global and domestic cues.
“All major sectors contributed to the rally, with IT, realty, and metals leading the gains. The broader markets also mirrored this strength, each advancing close to 4 per cent,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.
The easing of geopolitical concerns and progress on global trade talks brought significant relief to the markets, reflected in a sharp drop in the India VIX volatility index.
Technically, the sharp rise in the Nifty marks a continuation of the uptrend following a three-week consolidation phase. Having crossed the previous swing high of around 24,857, the index is now poised to inch towards the 25,200 level, while the 24,400–24,600 zone is expected to offer strong support on any dip, said Mishra.
–IANS
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