According to stock analysts, any fresh violations of the cease fire deal from Pakistan could keep bullish sentiments fragile. File photo
| Photo Credit: PTI

 The benchmark indices Sensex and Nifty rebounded sharply in early trade on Monday (May 12, 2025) after India and Pakistan announced reaching an understanding to stop all firings and military actions on land, air and sea.

The stock Markets openedon a high note with Sensex moving up over 2.3% as clarity emerged on the war from Sunday (May 11, 2025) evening’s briefing by armed forces. Also the trade deal announcement between United States and the United Kindgom and reports that U.S. and Chinese officials meeting in Switzerland on the weekend for trade discussions, paved the way for broader negotiations and tariff de-escalation, supported investor sentiment.

After starting the trade on an optimistic note, the 30-share BSE benchmark gauge Sensex further jumped 1,793.73 points to 81,248.20 in early trade. The NSE Nifty surged 553.25 points to 24,561.25.

Later, carrying forward the momentum, the BSE benchmark traded 1,949.62 points higher at 81,398.91, and the Nifty quoted 598.90 points up at 24,606.90.

“A thawing of the relationship between India & Pakistan is likely to trigger a massive rebound for benchmark Nifty early Monday trades, but that said any fresh violations of the cease fire deal from Pakistan could keep bullish sentiments fragile. The constructive trade talks between the US and China may further bolster global sentiment, while key domestic inflation numbers to be released on Tuesday & Wednesday will be in focus ahead of next month’s credit policy,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

From the Sensex firms, Adani Ports, Eternal, Bajaj Finance, Axis Bank, Bajaj Finserv, Reliance Industries, Power Grid and NTPC were the major gainers.

Sun Pharma, however, tanked over 5 per cent.

In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng were quoting higher while Japan’s Nikkei 225 index traded marginally lower.

US markets ended on a mixed note on Friday. Global oil benchmark Brent crude climbed 0.52 per cent to USD 64.24 a barrel.

(With inputs from PTI)