Markets rebound sharply on ceasefire between India, Pakistan: Sensex, Nifty surge 3 pc
Mumbai: Stock market benchmark indices Sensex and Nifty rebounded sharply by 3 per cent on Monday after India and Pakistan announced reaching an understanding to stop all firings and military actions on land, air and sea. India launched 'Operation Sindoor' on early May 7 to destroy nine terror infrastructures in Pakistan and Pakistan-Occupied-Kashmir in retaliation to the Pahalgam terror attack. After starting the trade on an optimistic note, the 30-share BSE benchmark gauge Sensex further jumped 2,376.18 points or 2.99 per cent to 81,830.65 in morning trade. The NSE Nifty surged 729.8 points or 3 per cent to 24,737.80.
"The ceasefire between India and Pakistan has paved the way for a sharp rally in the market. The prime mover of the rally will be the FII buying which has been sustained for 16 continuous days except last Friday when the conflict escalated," V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said. India and Pakistan on Saturday announced reaching an understanding to stop all firings and military actions on land, air and sea, with effect from 5 pm that day. Investors' wealth jumped by Rs 13.13 lakh crore to Rs 4,29,54,415.37 crore (USD 5.02 trillion) during the morning deals. From the Sensex firms, Adani Ports, Axis Bank, NTPC, ICICI Bank, HDFC Bank, Infosys, HCL Tech and Bajaj Finance were the major gainers. Sun Pharma and IndusInd Bank were the only laggards from the pack. In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng were quoting higher. US markets ended on a mixed note on Friday. Global oil benchmark Brent crude climbed 0.61 per cent to USD 64.30 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,798.71 crore on Friday, after remaining net buyers for many days, according to exchange data. Stock market benchmark indices tumbled over 1 per cent each on Friday after conflict between India and Pakistan intensified. On Friday, the 30-share BSE benchmark gauge tanked 880.34 points or 1.10 per cent to settle at 79,454.47. The Nifty dropped 265.80 points or 1.10 per cent to 24,008.
