Indian Equity Markets Soar on Geopolitical Relief, Global Confidence

 May 12, 2025: Indian equity markets saw a major rally today, closing sharply higher as a weekend ceasefire accord between India and Pakistan suddenly eased geopolitical tensions. The truce, announced on Saturday after days of intense cross-border activity, was the key trigger, coupled with positive global cues.

Both benchmark indices posted their biggest single-day absolute gains in four years. In percentage terms, it was their second-largest daily increase in the same timeframe, just behind the rises on February 1, 2021.

Highlights of the Closing Bell

Sensex closed the session higher by 2,975.43 points, or 3.74%, at 82,429.90.

Nifty 50 index rose 916.70 points, or 3.82%, to close at 24,924.70.

Sectors Experience Broad-Based Rally

The market strength was well-spread, with all sectoral indices closing the day in the green.

Sectors such as Realty, Power, IT, and Energy recorded strong gains, increasing between 4% and 6%.The Nifty IT index was the top performer, soaring 6.70%, its biggest gain in five years.

Moreover, the Nifty Metal index too recorded its largest intraday increase in 11 months, and the Nifty Bank its largest intraday increase in five months.

Although pharma shares fell early on individual news on US drug prices, the Nifty Pharma index ended up closing narrowly higher, though some stocks recovered during the day.

Broad markets also joined aggressively in the rally. The BSE Midcap index appreciated 3.8% and the Smallcap index gained 4%. Market breadth strongly favored advanced stocks, as about 3375 shares climbed against 585 falling on the BSE. 

Key Stock Movers

Among the members of the Nifty 50, Infosys and Adani Enterprises were among the best performers, both rising by about 8%. Other notable gainers on the index were Shriram Finance, Trent, and HCL Technologies.

On the other hand, Sun Pharma and IndusInd Bank were among the select Nifty stocks that ended in the red.

Market Capitalisation Crosses $5 Trillion Mark

The robust upsurge infused considerable value into the portfolios of the investors. The market capitalisation of BSE-listed companies rose by Rs 13 lakh crore, sending the aggregate value back over the $5 trillion mark.

Global Tailwinds Boost Sentiment

Apart from the domestic geopolitical comfort, positive worldwide sentiment was also important. The advancement of US-China trade talks helped enhance the risk appetite globally. There were reports that an agreement was signed to curb mutual tariffs as well as suspend trade measures for 90 days. World easing also involved the markets in Hong Kong, China, Japan, and Europe recording gains.

This move away from safe-haven assets resulted in gold prices falling, even as oil prices rose due to hopes of better global demand. Locally, the India Volatility Index (VIX) fell considerably too.

Current Market Update

• The Sensex is trading at 81,735.80 up by 2281.33 points or 2.87%.
• The NSE Nifty 50 is trading at 24,716.15 up by 705 points or 2.94%.

Top 5 Gainers in the Market

Adani Enterprises (ADANIENT)

• Opening Price: ₹2,350.00
• Current Market Price (LTP): ₹2,413.40
• Percentage Change: +7.21%
  Adani Enterprises led the market with a robust 7.21% gain. The rally is attributed to following recent clarification on regulatory matters and improved outlook on infrastructure spending. Overall, the combination of improved market sentiment due to geopolitical developments and favorable technical indicators contributed to the notable rise in Adani Enterprises' share price.

Shriram Finance (SHRIRAMFIN)

• Opening Price: ₹611.05
• Current Market Price (LTP): ₹639.80
• Percentage Change: +6.38%
  Shriram Finance surged 6.38% after reporting strong loan growth and improved asset quality in its Q4 update. The company’s focus on expanding its retail lending portfolio and positive management commentary have further boosted investor confidence.

Trent (TRENT)

• Opening Price: ₹5,330.00
• Current Market Price (LTP): ₹5,386.00
• Percentage Change: +5.34%
  Trent gained 5.34% on the back of robust same-store sales growth and successful new store launches. The company’s strong Q4 performance and aggressive expansion strategy in the retail segment have been well received by the market.

Jio Financial Services (JIOFIN)

• Opening Price: ₹258.95
• Current Market Price (LTP): ₹260.80
• Percentage Change: +5.01%
  Jio Financial Services advanced 5.01%, supported by improved quarterly earnings and optimism around its digital lending initiatives. The company’s recent partnerships and product launches have also contributed to the positive momentum.

HCL Technologies (HCLTECH)

• Opening Price: ₹1,598.80
• Current Market Price (LTP): ₹1,645.60
• Percentage Change: +4.83%
  HCL Technologies climbed 4.83% after the company announced a series of large deal wins and provided upbeat revenue guidance for the coming quarters. The IT sector’s overall resilience and strong demand for digital transformation services have also supported the rally.

Top Losers in the Market

IndusInd Bank (INDUSINDBK)

• Opening Price: ₹835.00
• Current Market Price (LTP): ₹791.75
• Percentage Change: -3.23%
  IndusInd Bank led the market losers, declining 3.23%. The drop is attributed to investor concerns over rising slippages and asset quality pressures highlighted in the bank’s recent quarterly results. Analysts have also flagged profit booking after a previous rally and sector-wide caution amid mixed signals from the broader banking industry.

Sun Pharma (SUNPHARMA)

• Opening Price: ₹1,695.70
• Current Market Price (LTP): ₹1,694.70
• Percentage Change: -2.87%
  Sun Pharma fell 2.87%, with the decline linked to profit booking following a recent uptrend and cautious outlook on US regulatory approvals for key products. 

Indian equity markets have opened on a strong note today. Both the benchmark indices, the Sensex and the Nifty 50, are registering substantial gains in the pre-opening session. The Sensex has gained over 1,400 points, increasing 1.79 percent to 80,880.44, while the Nifty has increased over 400 points, increasing 1.77 per cent to 24,434. This comes after a subdued close to the previous week, with initial indications pointing towards a strong start.

Commentary is that one possible reason for a rebound in the Nifty might be attributed to a reported improvement in India-Pakistan relations. Optimism regarding US-China trade talks might also help the market mood. Locally, investors will be keeping a close eye on forthcoming inflation readings.

Technically, the Nifty closing above the psychological 24,000 level on Friday is considered a robust support level. Analysts point to resistance levels to observe at 24,500 with further upside possible if key areas are broken.

Currency and Commodities:

Indian Rupee: The rupee strengthened by 0.25%, closing at ₹85.25 per US dollar on April 29.

Gold Prices: In India, 24-carat gold was available at ₹9,867 per gram, while 22-carat gold was at ₹9,044 per gram.

Crude Oil: Brent crude futures increased 27 cents to $64.18 a barrel, while US West Texas Intermediate (WTI) crude advanced 28 cents to $61.30 a barrel after a positive turn in US-China trade talks.

Stocks in Focus:

YES Bank: The private financier is in the limelight after the news that Sumitomo Mitsui Banking Corporation (SMBC) will acquire a 20 per cent stake in the bank. The acquisition is worth ₹13,482 crore at a rate of ₹21.50 per share. SMBC's purchase of the stake comprises 13.19 per cent belonging to State Bank of India (SBI) and the remaining 6.81 per cent from a group of other banks.

PSU Banking: Although the sector has lately exhibited weakness, initial reversal cues are seen in shares such as Bank of India, Canara Bank, and Union Bank.

Reliance Power: An associate, Reliance NU Energie, has won the biggest allotment in SJVN's competitive auction process, acquiring a contract for 350 MW of solar capacity with battery storage.

Bulk/Block Deals: Goldman Sachs has acquired shares of Mankind Pharma. BOFA Securities Europe SA has acquired stakes in Angel One and shares of Nuvama Wealth Management. At the same time, Oxbow Master Fundhas sold stakes in Angel One and Nuvama Wealth Management.

F&O Ban: Central Depository Services, Manappuram Finance, and RBL Bank are in the F&O ban period today.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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