Strong Upward Trend in the Stock Market on Monday.
The Sensex surged by 2975 points and the Nifty by 916 points. The India-Pakistan ceasefire, positive global indicators, and FPI investments fueled the market's momentum.
Stock Market Rally: On Monday, May 12, 2025, the Indian stock market witnessed its biggest jump in four years. The Sensex soared by a remarkable 2975 points, while the Nifty also jumped 916 points, making investors rich. Let's explore the major reasons behind this rally, the top performing stocks, and its impact on the market.
How Sensex and Nifty Made a Splash?
- The BSE Sensex closed at 82,429.90 points, registering a b increase of 3.74%.
- The NSE Nifty 50 closed at 24,924.70 points, climbing by 3.82%.
A positive market sentiment prevailed from the morning itself. Strong Asian markets, global indicators, and the India-Pakistan ceasefire prompted investors to engage in significant buying.
Top Gainers: Reliance, Infosys, HDFC Bank Lead the Surge
In this rally, shares of several leading companies skyrocketed.
Infosys: Jumped by 7.91%
HCL Tech: Rose by 6.35%
Tata Steel: Strengthened by 6.16%
TCS: Increased by 5.17%
Reliance and HDFC Bank: Both closed with a 4.27% increase.
Midcap and smallcap stocks also witnessed a surge. RVNL (11.02%), First Cry (9.28%), Maninds (20%), and Bajaj Electric (14.92%) were among the top gainers.
Five Major Reasons that Propelled the Stock Market
1. India-Pakistan Ceasefire Agreement
Following a reduction in tensions between India and Pakistan, an agreement on a ceasefire was reached. This injected positive sentiment into the market.
2. Positive Signals on the US-China Trade War
Globally, the prospect of an agreement on a trade deal between the US and China strengthened the market.
3. Significant Drop in India VIX
A 20% decline was observed in the Volatility Index (India VIX), reducing investor anxiety and increasing market purchases.
4. Strong Q4 Results
Strong results from several companies in the March quarter boosted market confidence. Strong results from the IT and banking sectors were particularly impactful.
5. Substantial FPI Investment
FPIs have invested approximately ₹14,000 crore in the Indian market so far in May, strengthening market sentiment.
Market Rebounds from Last Week's Decline
The Indian market witnessed a decline on the last two days of the previous week. On Friday, the Sensex fell by 880 points, while the Nifty dropped by 265 points. However, on Monday, the market made a b comeback, delivering significant profits to investors.
Impact of the Ceasefire
Following the Pulwama terror attack on April 22, India's b response (Operation Sindur) retaliated against Pakistan. Subsequently, both countries declared a ceasefire. While the Pakistani stock market continued to decline, the Indian market showed a remarkable recovery.
