Benchmark indices of the Indian Stock Market saw a record rally on Monday, with the Sensex soaring by nearly 3,000 points and the Nifty 50 advancing by over 900 points.
Easing of tensions between India and Pakistan is believed to have significantly boosted investor sentiment along with a progress in trade negotiations between US and China.
At close, the Sensex was up 2,975.43 points or 3.74 percent at 82,429.90, and the Nifty was up 916.70 points or 3.82 percent at 24,924.70.
In percentage terms, both indices surged nearly 4 percent, notching up their second-highest gains in four years. The only bigger jump in percentage terms took place on February 1, 2021, when both indices rose by more than 4.7 percent. The rally was broad-based, with all sectoral indices trading in positive territory.
Although the segment initially reacted to comments by US President Donald Trump, who pledged to cut US drug prices by up to 80 percent, the Street largely shrugged off the concerns.
The Nifty Realty and Nifty IT indices were among the top gainers during this period, both surging six and seven percent, respectively. Broader market participation was also notable, with midcap and smallcap indices outperforming the benchmarks, each rising 4.1 percent.
The United States and China agreed to a 90-day pause in reciprocal tariffs and a 115-percentage point reduction in rates, reports said.
Additionally, reports of Russia and Ukraine initiating peace negotiations in Istanbul further helped ease global risk concerns.
With volatility subsiding and external cues turning favourable, the equity market is likely to maintain its upward trajectory, provided domestic macroeconomic fundamentals remain intact, according to those in the know of the markets.
Also Read: Thirty-Two Airports Reopen In India After Ceasefire Between India And Pakistan https://www.vibesofindia.com/thirty-two-airports-reopen-in-india-after-ceasefire-between-india-and-pakistan/
