Indian stock market: Benchmark indices – the Sensex and the Nifty 50 – gained nearly 4% each to post the best single-day rally in four years on Monday, May 12, as a host of positive news, from India-Pakistan ceasefire to US-China trade deal, lifted investor sentiment.
The BSE Sensex settled the day 2,975 points or 3.74% higher at 82,430. It hit the day’s high of 82,495.97, putting it 4% away from its all-time peak of 85,978. Meanwhile, NSE’s barometer Nifty 50, after hitting the day’s peak of 24,944.80, settled the session at 24,924.70, up 916.70 points or 3.82%.
Meanwhile, the overall market capitalisation of all companies listed on the BSE swelled by ₹1,6,06,576 lakh crore to ₹4,32,47,426.73 lakh crore today. The figure stood at ₹4,16,40,850.46 as of Friday’s close.
The broader markets also rejoiced. BSE Midcap index jumped 3.85% to settle at 43,731.60, while the BSE Smallcap index soared 4.18% to end at 48,693.75.
Indian stock market: 10 key highlights from the day
Here are 10 key highlights from the stock market today:
1. Why did the stock market clock best day in 4 years today?
Easing geopolitical tensions and a cooling off of the trade war between the world’s two largest economies – the US and China – helped drive the Indian stock markets higher on Monday.
Ajit Mishra – SVP, Research, Religare Broking, said, “Markets opened the week on a strong footing, rallying nearly 4%, driven by supportive global and domestic cues. The key trigger was the announcement of a ceasefire between India and Pakistan over the weekend, signaling easing geopolitical tensions. Adding to the positive sentiment were encouraging updates on the US-China trade deal, which further boosted investor confidence as the session progressed.”
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, he said.
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%, Mishra added.
Commenting on market outlook, Mishra said, “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 24,400–24,600 zone is expected to offer strong support on any dip, he observed.
2. Top Nifty 50 gainers today
In the Nifty 50 pack of stocks, barring two stocks, all ended in the green. Adani Enterprises emerged as the top performer, surging 7.7% today. Infosys also recorded strong gains of 7.69%. It was followed by Shriram Finance, Trent and Wipro that gained between 6-7% each. IndusInd Bank and Sun Pharma were the only losers among the Nifty 50 stocks.
3. Sectoral snapshot: All indices gain
All major sectoral indices gained today, including the Nifty Pharma index, which suffered hefty losses in the early trading session. Nifty IT emerged as the top performer, surging 6.7% as a US-China trade deal dimmed fears of a recession in the world’s largest economy. Nifty Realty, Nifty Metal, and Nifty Auto were among the other top gainers. Nifty Pharma gained just 0.15% as reports of a possible cut in drug prices in the US by Donald Trump hit the shares of pharma exporters today.
