Stock market today : Nifty50 and BSE Sensex , the Indian equity benchmark indices, rallied strongly in trade on India-Pakistan ceasefire and US-China trade deal progress. Both indices rallied over 3.5% cheered by domestic stability and favourable global news. While Nifty50 went above 24,900, BSE Sensex crossed 82,400 mark. At 3:21 PM, Nifty50 was trading at 24,932.70, up 925 points or 3.85%. BSE Sensex was at 82,432.13, up 2,978 points or 3.75%.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, "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 sixteen continuous days except last Friday when the conflict escalated. Domestic macros like expectations of high GDP growth and revival of earnings growth in FY26 and declining inflation and interest rates augur well for the resumption of a rally in the market. FIIs favour large caps like ICICI Bank, HDFC Bank, Bajaj Finance, RIL, L&T, Bharti, Ultratech, M&M and Eicher are likely to lead the rally. Midcap IT and digital stocks are other segments to watch. Pharma stocks may come under near-term pressure from President Trump’s latest announcement regarding reducing prices of drugs in the US."
"There are rumors of an impending US deal with China on trade but details are yet to come. If a deal materializes that would be good for the global economy. But from an Indian perspective that would be slightly disappointing since we were expecting a trade deal with the US ahead of many nations including China."
The combined market value of companies listed on the BSE increased substantially by Rs 13.1 lakh crore, reaching a total valuation of Rs 429.5 lakh crore., according to an ET report.
Why is stock market rallying today? Top Reasons
The following five factors contributed to Monday's market surge:
1. India-Pakistan ceasefire reduces uncertainty
Investors responded positively after India and Pakistan agreed to temporarily suspend military actions on Saturday, following a week of reciprocal attacks and drone operations. The ceasefire remained intact through Sunday.
The Nifty had declined approximately 1.5% during the three trading sessions until Friday, influenced by concerns of increasing conflict. Monday's recovery indicated renewed investor confidence as markets responded to signs of decreasing geopolitical stress.
2. Global Risk Sentiment Improves Following US-China Trade Discussions
Asian equity markets advanced nearly 1% after the United States and China announced "substantial progress" in their trade discussions held in Geneva over the weekend. The positive development lifted US futures and petroleum prices, enhancing confidence in Indian financial markets.
"Markets are set to soar as geopolitical tensions thaw," said Devarsh Vakil, Head of Prime Research at HDFC Securities.
"The trade deal announcement between the U.S. and the UK, along with reports that U.S. and Chinese officials met in Switzerland over the weekend, paved the way for broader negotiations and tariff de-escalation—supporting investor sentiment," he added.
3. SIP Investments Reach New Heights
Domestic institutional backing remained robust, with monthly SIP contributions achieving a new peak of Rs 26,632 crore in April, representing a 2.72% increase from the preceding month. SIP-managed assets totalled Rs 13.9 lakh crore, whilst FY25 SIP inflows increased by 45.24%, marking the strongest growth since FY18.
"India's markets and economy have shown remarkable resilience, consistently withstanding external shocks," Vakil said.
"This strength stems from a steady, domestically driven economy that helps shield us from global turbulence—reinforcing the idea that every crisis eventually passes."
4. Broad Market Rally Across Sectors
All key sector indices showed positive movement at opening, except for pharmaceutical and healthcare segments. Nifty Realty emerged as the top performer with a 4.5% increase, whilst Nifty PSU Bank rose by 3%, Nifty Auto by 2.5%, and Nifty IT by 3.7%.
The wider market demonstrated strong performance, with Nifty Midcap 100 and Nifty Smallcap 100 indices advancing by 3.3% and 3.5% respectively.
In individual stock movements, Adani Ports, Axis Bank, L&T, Bajaj Finance, and NTPC recorded gains between 3-4%. Reliance Power witnessed a surge exceeding 10% after announcing a consolidated Q4 net profit of Rs 126 crore, compared to previous year's loss. Adani Power's shares increased by 7% following its successful bid for a Rs 2 billion power supply project in Uttar Pradesh.
5. Petroleum Prices Advance on Trade Prospects
Oil prices increased due to positive developments in US-China trade talks, indicating enhanced demand from the two largest petroleum consumers globally. Brent crude advanced 27 cents (0.4%) to $64.18 per barrel, whilst WTI increased 28 cents (0.5%) to $61.30.
The uptick in oil prices benefited energy sector shares and strengthened overall global economic confidence, positively influencing Indian market sentiment.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, "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 sixteen continuous days except last Friday when the conflict escalated. Domestic macros like expectations of high GDP growth and revival of earnings growth in FY26 and declining inflation and interest rates augur well for the resumption of a rally in the market. FIIs favour large caps like ICICI Bank, HDFC Bank, Bajaj Finance, RIL, L&T, Bharti, Ultratech, M&M and Eicher are likely to lead the rally. Midcap IT and digital stocks are other segments to watch. Pharma stocks may come under near-term pressure from President Trump’s latest announcement regarding reducing prices of drugs in the US."
"There are rumors of an impending US deal with China on trade but details are yet to come. If a deal materializes that would be good for the global economy. But from an Indian perspective that would be slightly disappointing since we were expecting a trade deal with the US ahead of many nations including China."
The combined market value of companies listed on the BSE increased substantially by Rs 13.1 lakh crore, reaching a total valuation of Rs 429.5 lakh crore., according to an ET report.
Why is stock market rallying today? Top Reasons
The following five factors contributed to Monday's market surge:
1. India-Pakistan ceasefire reduces uncertainty
Investors responded positively after India and Pakistan agreed to temporarily suspend military actions on Saturday, following a week of reciprocal attacks and drone operations. The ceasefire remained intact through Sunday.
The Nifty had declined approximately 1.5% during the three trading sessions until Friday, influenced by concerns of increasing conflict. Monday's recovery indicated renewed investor confidence as markets responded to signs of decreasing geopolitical stress.
2. Global Risk Sentiment Improves Following US-China Trade Discussions
Asian equity markets advanced nearly 1% after the United States and China announced "substantial progress" in their trade discussions held in Geneva over the weekend. The positive development lifted US futures and petroleum prices, enhancing confidence in Indian financial markets.
"Markets are set to soar as geopolitical tensions thaw," said Devarsh Vakil, Head of Prime Research at HDFC Securities.
"The trade deal announcement between the U.S. and the UK, along with reports that U.S. and Chinese officials met in Switzerland over the weekend, paved the way for broader negotiations and tariff de-escalation—supporting investor sentiment," he added.
3. SIP Investments Reach New Heights
Domestic institutional backing remained robust, with monthly SIP contributions achieving a new peak of Rs 26,632 crore in April, representing a 2.72% increase from the preceding month. SIP-managed assets totalled Rs 13.9 lakh crore, whilst FY25 SIP inflows increased by 45.24%, marking the strongest growth since FY18.
"India's markets and economy have shown remarkable resilience, consistently withstanding external shocks," Vakil said.
"This strength stems from a steady, domestically driven economy that helps shield us from global turbulence—reinforcing the idea that every crisis eventually passes."
4. Broad Market Rally Across Sectors
All key sector indices showed positive movement at opening, except for pharmaceutical and healthcare segments. Nifty Realty emerged as the top performer with a 4.5% increase, whilst Nifty PSU Bank rose by 3%, Nifty Auto by 2.5%, and Nifty IT by 3.7%.
The wider market demonstrated strong performance, with Nifty Midcap 100 and Nifty Smallcap 100 indices advancing by 3.3% and 3.5% respectively.
In individual stock movements, Adani Ports, Axis Bank, L&T, Bajaj Finance, and NTPC recorded gains between 3-4%. Reliance Power witnessed a surge exceeding 10% after announcing a consolidated Q4 net profit of Rs 126 crore, compared to previous year's loss. Adani Power's shares increased by 7% following its successful bid for a Rs 2 billion power supply project in Uttar Pradesh.
5. Petroleum Prices Advance on Trade Prospects
Oil prices increased due to positive developments in US-China trade talks, indicating enhanced demand from the two largest petroleum consumers globally. Brent crude advanced 27 cents (0.4%) to $64.18 per barrel, whilst WTI increased 28 cents (0.5%) to $61.30.
The uptick in oil prices benefited energy sector shares and strengthened overall global economic confidence, positively influencing Indian market sentiment.
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