Indian Equities Surge Nearly 3% on Ceasefire Relief; All Sectoral Indices in the Green
Indian stock markets rallied sharply on Monday, May 12, with both the Sensex and Nifty surging close to 3% as investor sentiment turned bullish after India and Pakistan announced a ceasefire agreement over the weekend. The Sensex climbed 2,343.04 points (2.95%) to settle at 81,797.51, while the Nifty gained 710.45 points (2.96%) to close at 24,718.45, reflecting widespread optimism across sectors. This marked one of the strongest single-day performances in 2025 so far.
At 12:00 PM IST, market breadth remained decisively positive with 3,430 advancing stocks on the BSE against just 459 declines, and 169 unchanged, out of a total of 4,058 traded stocks. Further, 396 stocks hit the upper circuit, while only 158 hit lower circuits. A total of 87 stocks reached 52-week highs, against 41 stocks hitting 52-week lows, underlining the extent of market-wide strength.
Highlights:
Sensex up 2,343 pts to 81,797.51; Nifty up 710 pts to 24,718.45
All sectoral indices in the green, signaling broad-based recovery.
MidCap and SmallCap indices up 3% each, led by financials and industrials.
Heavyweight Rallies Lead the Charge; Adani Enterprises, Jio Financial Among Top Gainers
Among the biggest movers on the Nifty, Adani Enterprises surged 6.22% to ₹2,391.10, topping the gainers list. Other strong performers included Jio Financial Services (+4.83%), Shriram Finance (+3.92%), and Axis Bank (+3.80%). Stocks like Trent and Eternal also saw notable gains, helping push the broader indices higher.
On the losing side, Sun Pharma and IndusInd Bank were the only laggards in an otherwise green market. Out of the Nifty 50, 48 stocks closed in the green, while only two declined.
Overall, 12 out of 13 major sectors registered strong gains, with sectors such as financials, industrials, auto, and infrastructure leading the charge. The bullish sentiment was amplified by stability in oil prices and positive cues from global equity markets.
Highlights:
Adani Enterprises (+6.22%), Jio Financial (+4.83%), Axis Bank (+3.80%)
Sun Pharma and IndusInd Bank only Nifty laggards.
Sectoral rally led by banks, NBFCs, and industrials.
Market Optimism Driven by Ceasefire, Strong Q4, Global Tailwinds
Investor sentiment surged primarily due to the India-Pakistan ceasefire, ending a week of escalating tensions marked by missile and drone attacks. The ceasefire was viewed as a key de-escalation measure, especially after Operation Sindoor concluded with Indian precision strikes on May 9.
Additionally, the rally was supported by:
Recovery from recent sell-off: Last week’s weakness is being seen as a buying opportunity.
Strong Q4 earnings from sector heavyweights, which reaffirmed domestic macro resilience.
Stable oil prices, reducing inflationary pressure.
Supportive global sentiment, with major indices in Asia and Europe trading higher.
India VIX, the volatility index, dropped 16%, ending its eight-day surge, further confirming the market’s risk appetite rebound.
Highlights:
India-Pakistan ceasefire key driver of market optimism.
India VIX down 16%, indicating lower investor fear.
Strong Q4 results, stable crude, global risk-on sentiment boost equities.
Global Market Sentiment Also Bullish, Adding to Domestic Momentum
Global equity benchmarks were also trading higher on Monday, reinforcing positive sentiment in domestic markets. As of 9:51 a.m. Tokyo time, S&P 500 futures had risen 1.4%, while Japan’s Topix was up 0.3% and Australia’s S&P/ASX 200 gained 0.5%. Euro Stoxx 50 futures were up 0.8%, reflecting a globally synchronized equity rebound amid easing geopolitical and inflationary pressures.
This convergence of positive domestic triggers and global support created the perfect environment for a broad-based rally across Indian equities.
Highlights:
S&P 500 futures up 1.4%, Euro Stoxx 50 futures up 0.8%
Asia-Pacific indices like Topix and ASX 200 also in the green
Global bullishness enhances India’s equity rebound.
