Ceasefire boosts investor sentiment, Sensex, Nifty surge nearly 3%

The Indian equity benchmarks surged on Monday amid easing geopolitical concerns after India and Pakistan agreed to halt hostilities following intense military exchanges. At close, the Sensex was up 2,975.43 points or 3.74 percent at 82,429.90, and the Nifty 50 was up 916.70 points or 3.82 percent at 24,924.70. The BSE Midcap index rose 3.8 percent and smallcap index added 4 percent.
Infosys, Adani Enterprises, Shriram Finance, Trent, HCL Technologies were the top gainers on the Nifty while losers included Sun Pharma and IndusInd Bank.On the sectoral front,all the sectoral indices ended in the green with realty, power, IT, energy up 4-6 percent, while auto, bank, capital goods, FMCG, oil & gas, telecom, power, media up 2-3.8 percent. Broader market participation was also notable, with midcap and smallcap indices outperforming the benchmarks, each rising 3 percent.
Trading Guide:
Vinod Nair, Head of Research, Geojit Investments reportedly quoted as saying, confluence of positive geopolitical and economic developments—the ceasefire between India and Pakistan, coupled with a breakthrough trade agreement between the US and China—sparked the strongest daily market rally in recent times. Tarriff issue had the pivotal role in the stock market's consolidation over the year. Sudden easing of the US-China tariff war unlocked multiple investment avenues for investors.
Sustained foreign institutional investor (FII) inflows, along with a resurgence in retail participation fuelled by expectations of a swift improvement in business sentiment, propelled today's upside. However, while the momentum remains strong, the market may enter a phase of consolidation in the near term as investors await concrete signs of earnings growth. In the meantime, mid & small caps are expected to maintain the optimism in the broad market.

(Business Correpondent)