At 10 am, the BSE Sensex was up 2,376 points or 2.88%, at 81,830.65, while the Nifty50 rose 705 points, or 2.94%, to 24,713 points.
The ceasefire between India and Pakistan held on Saturday, after intense overnight fighting between the nuclear-armed neighbours.
The conflict, the most serious in nearly three decades, began on Wednesday when India launched strikes on nine terror sites in Pakistan—retaliating for an earlier attack in Kashmir that killed 26 people.
However, Indian military officials reportedly sent a “hotline message” to Pakistan on Sunday, flagging ceasefire violations and warning of a potential response if provocations continued.
From the Sensex pack, Adani Ports, Axis Bank, L&T, Bajaj Finserv, Bajaj Finance, and NTPC were among the top gainers, rising 3–4% in early trade, while Sun Pharma was the only stock in the red, falling over 6%.On the sectoral front, all indices opened in the green except Nifty Pharma and Nifty Healthcare. The Nifty Pharma index fell over 2%, with Sun Pharma, Biocon, Aurobindo Pharma, and Glenmark among the top losers after U.S. President Donald Trump announced plans to slash prescription drug prices by 30% to 80% “almost immediately” via a post on his Truth Social account.Among individual stocks, Adani Power gained 7% after the company announced it has secured a bid to supply 1,500 MW of electricity to Uttar Pradesh from a greenfield ultra-supercritical power plant. The project involves an investment of USD 2 billion.
Reliance Power surged 10.2% after the company posted a consolidated net profit of Rs 126 crore for the January–March quarter of FY25, compared to a loss of Rs 397.56 crore in the same period last year, driven by a sharp decline in expenses.
The market capitalisation of all listed companies on BSE surged by Rs 11.1 lakh crore to Rs 427.49 lakh crore.
Expert View
“Any fresh violations of the ceasefire deal from Pakistan could keep bullish sentiments fragile,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
“The constructive trade talks between the US and China may further bolster global sentiment, while key domestic inflation numbers to be released on Tuesday & Wednesday will be in focus ahead of next month’s credit policy,” Tapse added.
Global Markets
Wall Street stock futures climbed and the dollar firmed against safe haven peers on Monday as signs of progress in U.S.-China trade talks boosted hopes a global recession might be avoided, though specifics were still sorely lacking.
Geopolitical tensions also looked to be easing as a fragile ceasefire held between India and Pakistan, while Ukrainian President Volodymyr Zelenskiy said he was ready to meet Vladimir Putin in Turkey on Thursday for talks.
Markets reacted by pushing S&P 500 futures up 1.2%, while Nasdaq futures rose 1.4%. EUROSTOXX 50 futures firmed 0.9%, while FTSE futures added 0.4% and DAX futures 0.7%.
Japan’s Nikkei edged up 0.3%, while South Korea gained 0.4%.
FII/DII Tracker
Foreign Institutional Investors (FIIs), after being net buyers for sixteen consecutive sessions, turned net sellers on May 9, offloading equities worth Rs 3,798 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers, investing Rs 7,277 crore on the same day.
Oil Prices Rise
Oil prices rose on Monday after both sides in U.S.-China trade talks over the weekend touted their progress, which lifted market sentiment that the world’s two largest crude users may be moving toward a resolution of their trade dispute.
Brent crude futures climbed 27 cents, or 0.4%, to $64.18 a barrel at 0001 GMT. U.S. West Texas Intermediate (WTI) crude futures were trading at $61.30 a barrel, up 28 cents, or 0.5%, from Friday’s close.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
