Stock market today: India-Pakistan ceasefire effect! Sensex jumps 1900 points, Nifty 50 near 24,600

Stock market today: Buoyed by the India-Pakistan ceasefire, the key benchmark indices of the Indian stock market had a big gap-up opening on Monday. The Nifty 50 index opened upside at 24,420 and touched an intraday high of 24,590 within a few minutes, recording an intraday gain of 582 points. The BSE Sensex opened at 80,803 and touched an intraday high of 81,470. While climbing to this intraday high, the 30-stock index logged an intraday gain of over 1900 points within a few minutes of the Opening Bell. The Bank Nifty index opened at 54,658 and regained 51K peak by hitting an intraday high of 55,112.

According to stock market experts, the primary reason for the Indian stock market rally is the India-Pakistan ceasefire. However, they said the US-China trade deal, UK-UK trade deal, India-UK trade deal, and buzz for FIIS' buying are some other important reasons that have together fueled Dalal Street indices on Monday.

1] India-Pakistan ceasefire: “The primary reason for the Indian stock market rally is India-Pakistan ceasefire. The de-escalation in the India-Pakistan tension removes a key overhang on investor sentiment and is likely to be seen as a major positive development by financial markets,” said Prashanth Tapsi, AVP — Research at Mehta Equities.

Historically, markets have shown resilience and a tendency to recover following such geopolitical de-escalations.

2] US-China, US-UK trade deal: “After the announcement of the US-China trade deal, the outlook for global sentiments has improved. Now, investors are getting some clarity on Trump's tariff, which has fueled the major Asian bourses, including Dalal Street,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.

“The trade deal announcement between the US and UK and reports that U.S. and Chinese officials are meeting in Switzerland over the weekend for trade discussions, paved the way for broader negotiations and tariff de-escalation, supported investor sentiment,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.

3] India-UK trade deal: “Last week, the India-UK trade deal was announced, which is expected to give some relief to the Indian export and import business. So, the market is trying to discount this big development after the announcement of de-escalation in India-Pakistan tension,” said Gorakshkar.

4] Buzz for FIIs' buying: “Despite the India-Pakistan tension, the Indian stock market has exhibited surprising resilience. The fundamental reason for this resilience has been the sustained FII buying. After the announcement of India-Pakistan ceasefire, there is buzz for FIIs' going highly bullish on the Indian stocks, which is fueling the uptrend on Dalal Street,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

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