Sharp Surge in Stock Market Following India-Pakistan Ceasefire: Sensex Soars 2200 Points, Nifty Hits Record High; Reliance and Banking Stocks Shine.
Stock Market Today: Following heightened tensions between India and Pakistan, peace has been restored. The announcement of a ceasefire led to a significant surge in the Indian stock market on Monday. The Sensex jumped over 2200 points on the first day of the week, while the Nifty also witnessed a remarkable rally. Let's understand the reasons behind this surge and the key contributors to the market's momentum.
Impact of Indo-Pak Ceasefire on the Stock Market
After the April 22nd Pahalgam terrorist attack, tensions between India and Pakistan reached a peak. In response to Operation Sindur launched by India, Pakistan retaliated with cross-border firing and drone attacks. During this period, the Pakistani stock market experienced daily declines.
However, a ceasefire has now been established between the two countries. This directly impacted the Indian stock market, which saw a dramatic surge on the first trading day of the week (Monday).
Sensex and Nifty Reach New Heights
On Monday, the Sensex opened at 80,803.80, a gain of approximately 1500 points compared to its previous close of 79,454.47. The market opened with b momentum, and within minutes, it surged by 1926 points to approach 81,380. Within half an hour, the Sensex was trading at 81,741.69, showing a rise of 2287.22 points or 2.88%. Similarly, the Nifty opened at 24,420 and quickly jumped 691 points to reach 24,699.85.
Stocks Driving the Market Surge
Large-cap stocks played a significant role in this market strengthening. Major stocks like Axis Bank, Adani Ports, Bajaj Finserv, Tata Steel, Reliance Industries, ICICI Bank, and HDFC Bank saw gains ranging from 2% to 4%. Adani Ports registered a rise of approximately 3.88%, Bajaj Finserv 3.75%, and Reliance Industries 3.23%.
HDFC Bank also witnessed a 2.85% increase. Mid-cap and small-cap stocks also showed positive trends. Stocks like Escorts, Suzlon, FirstCry, RVNL, and IREDA saw gains of 5% to 7%, while in the small-cap category, Punjab Chemicals and KPEL registered increases of 10% to 13%.
Sharp Recovery from Friday's Decline
The stock market witnessed a decline on Friday, the last trading day of the previous week. The Sensex plunged 880 points to close at 79,454, while the Nifty also fell by 265 points. However, the situation completely reversed on Monday, with the market showing a b recovery fueled by the Indo-Pak ceasefire news, which boosted investor sentiment and created a buying environment.
Positive Signals from Global Markets
The Indian market also received support from international markets. Despite mixed signals from US markets at the end of the previous week, Asian markets showed strength on Monday, impacting the Indian market. Gift Nifty, in early trading, jumped 525 points to reach 24,610, indicating a market surge.
Reasons for the Significant Market Surge
The recent military tensions between India and Pakistan, followed by the ceasefire, contributed to market stability. Investors were reassured that the border situation was under control and that this would have a positive impact on future economic activities. Furthermore, b quarterly results from domestic companies and the return of Foreign Institutional Investors (FIIs) also strengthened the market's upward momentum.
