Indian Markets Surge as Ceasefire Boosts Investor Sentiment; Sensex Jumps 2100 Points

Indian Markets Surge as Ceasefire Boosts Investor Sentiment; Sensex Jumps 2100 Points

Last Updated May - 12 - 2025, 02:39 PM | Source : Fela News

Sensex rallies over 2100 points and Nifty gains 553 after India-Pakistan ceasefire eases tensions; pharma stocks dip as U.S. signals drug price cuts.

Indian stock markets witnessed a strong rally on Monday morning, with the Sensex soaring over 2,100 points and the Nifty rising by 553.25 points to reach 24,561.25. This marked the first trading session since the announcement of a ceasefire agreement between India and Pakistan. Despite recent tensions, the markets showed impressive resilience, according to ANI.

With border tensions easing, investor confidence returned, fueling a robust rally backed by strong capital inflows. Banking and market expert Ajay Bagga told ANI that Indian futures were indicating a 2% jump, recovering losses from the recent India-Pakistan conflict. He noted that Indian markets had handled the volatility well and were on track for a strong rebound.

Sector-wise, Nifty Auto climbed 2.25%, Nifty IT rose 2.16%, and Nifty Realty led the pack with gains exceeding 4% in early trade. Global sentiment also contributed positively, as U.S.–China trade discussions in Geneva over the weekend were described as constructive, further boosting investor morale.

Meanwhile, gold prices fell by over 2%, whereas oil prices and the U.S. dollar edged higher. U.S. stock futures pointed to a likely gain of over 1% for Wall Street later in the day.

Pharma stocks lag behind broader market gains
Despite the overall market surge, Indian pharmaceutical stocks declined by 1.3% on Monday. This drop followed U.S. President Trump’s announcement that he would sign an executive order to align U.S. drug prices with those in other high-income countries, which he claimed are 30% to 80% lower.

Out of 20 stocks in the pharmaceutical sub-index, eight traded in the red, even as the benchmark Nifty 50 rose by 2.4%. Sun Pharma, India’s largest drugmaker by revenue, fell 5.4%, making it the biggest loser on both the Nifty 50 and the pharma index. Glenmark Pharma slipped 0.4%, and Cipla dropped 1.5%.

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