GIFT Nifty surges 500 points, indicating a gap-up after India, Pakistan pause military action
Published on 12/05/2025 06:59 AM
GIFT Nifty surges 500 points, indicating a gap-up after India, Pakistan pause military actionThe implied open is currently suggesting a 500-point gap up after India and Pakistan agreed on Saturday evening to pause military action, developments which had kept equity markets on the edge all through last week.By Hormaz Fatakia May 12, 2025, 6:59:53 AM IST (Updated)2 Min ReadIndia's GIFT Nifty, an early indicator of how equity markets are likely to start trading, is indicating a gap-up start for the benchmark indices Sensex and Nifty 50.
The implied open is currently suggesting a 500-point gap up after India and Pakistan agreed on Saturday evening to pause military action, developments which had kept equity markets on the edge all through last week.
In what was a fairly resilient performance from the stock market, despite escalating tensions between India and Pakistan on the border, the Nifty fell only 1.5% last week and held on to the 24,000 level on the downside.
The broader markets saw sharper swings on either side compared to the benchmarks but also clawed back most of their losses. The Nifty Midcap index fell 0.9% last week, while the Smallcap index ended 2.2% lower for the week.
Based on the implied open, the Nifty is likely to open around levels of 24,600.
Indian equities will also be reacting to global developments, where the US and China have cited progress in their trade talks, leading to a 450-point jump on the Dow futures earlier this morning. There are also updates on Russia and Ukraine heading to the negotiating table.
Ashwini Agarwal, founder and partner at Demeter Advisors told CNBC-TV18 that investors should focus on the long-term outlook, which is still positive for Indian equities.
"From my standpoint, this is fog of war and none of us really know what will happen and how long it will carry on and what will finally the end game be. But if history is any suggestion, I would encourage investors to not panic and look at the longer term picture, which I think remains reasonably constructive, even as we go through this fog of war," he added.Continue ReadingFirst Published: May 12, 2025 6:43 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBSE SensexGift niftyNifty 50share market today