The understanding for a ceasefire between India and Pakistan brought cheers for investors who were richer by more than ₹16 lakh crore in a single day&mdash;as Sensex and Nifty gained a massive nearly 4% in a bull rally seen after February 2021.&nbsp;
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%, to end at 82,429.90, while Nifty jumped 916.70 points, or 3.82%, 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%.&nbsp;
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.&nbsp;
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% loss after US President Donald Trump&rsquo;s comments about slashing drug prices by up to 80%, managed to close 0.15% higher as the market shrugged off the concerns.
Leading the charge were the Nifty IT and Nifty Realty indices, which rose 6% and 7% respectively. Midcap and smallcap stocks also joined the rally, outperforming the broader market with gains of 4.1% each.
The total market capitalisation of all companies listed on the BSE climbed to ₹432.47 lakh crore, up from ₹416.52 lakh crore in the previous session&mdash;a gain of ₹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.&nbsp;
&ldquo;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%,&rdquo; said Ajit Mishra, SVP, Research, Religare Broking Ltd.&nbsp;
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&ndash;24,600 zone is expected to offer strong support on any dip, said Mishra.
&mdash;IANS
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India-Pak ceasefire boosts sensex, nifty; investors gain over ₹16 lakh cr in a day

Sensex, Nifty Post Best Rally in 4 Years

India-Pak ceasefire boosts sensex, nifty; investors gain over ₹16 lakh cr in a day

May 12, 2025 | 16:43 IST