Indian Stock Market Sees Significant Gains as Ceasefire Between India and Pakistan Boosts Sentiment
The Indian stock market opened on a strong note today, with the BSE Sensex surging 1,500 points, or 2%, in early trade, as investors reacted to the ceasefire agreement between India and Pakistan. The 30-share index of the Bombay Stock Exchange opened at a significantly higher level, indicating a strong demand for equities despite underlying concerns over the thawed relations between the two nuclear-armed neighbours.
According to reports, the Nifty50, the benchmark of the National Stock Exchange (NSE) comprising the country’s top 50 companies, also saw significant gains, rising 500 points in 15 minutes in the run-up to the 9:15 am opening bell. As of 10:05 am, the Sensex had shot up 2,200 points, while the Nifty was 700 points higher than its last closing level. This strong market performance was reported by NDTV, a leading Indian news provider.
The ceasefire agreement between India and Pakistan was announced on Saturday evening, although incidents of violation by Pakistan were reported hours later. However, Sunday night remained largely peaceful, according to the Indian Army. The markets showed extreme resilience and witnessed only limited losses during the conflict, with experts attributing this to India’s clear superiority in warfare and its inherent resilience supported by global and domestic macros.
As quoted by NDTV, experts believe that the gains in the market also come after the US announced a deal with China to cut their trade deficit. "We made substantial progress between the US and China in the very important trade talks. I can tell you that the talks were productive," said Treasury Secretary Scott Bessent. The announcement fuelled hopes on both sides that the US and China would de-escalate from the tariff standoff, adding gains to Asian markets and boosting the dollar.
The announcement of the trade deal brought relief to investors, as the equity markets in Hong Kong, Shanghai, Sydney, Seoul, Taipei, and Wellington opened in the green today. Only Tokyo was flat, while US futures have also surged ahead of the markets’ opening this evening. The dollar saw a strong boost, while oil prices increased over speculation that easing tensions would drive demand.
In related news, US President Donald Trump had reserved the heftiest tariffs for Beijing when he unveiled the retaliatory tariffs last month, hiking the duty on Chinese products to 145 percent. In response, China increased tariffs on the US to 125 percent. However, with the trade deal, investors are hopeful that the US and China will continue to de-escalate tensions, which could have a positive impact on the global economy. As NDTV reported earlier, the Indian stock market has shown resilience in the face of global uncertainty, and today’s gains are a testament to this.
The Indian stock market’s strong performance today is a welcome respite for investors, who have been worried about the impact of global events on the economy. With the ceasefire agreement between India and Pakistan and the US-China trade deal, investors are hopeful that the markets will continue to rally in the coming days. As per NDTV, experts will be closely watching the developments in the markets to see if this trend continues.
