Athira Sethu
Kochi, 12 May 2025
Indian markets rose sharply on Monday, May 12. Both the Nifty 50 and Sensex major indices saw an increase of around 2% at the opening bell. This sharp surge occurred due to the fact that investors were glad to hear the news that hostilities between Pakistan and India were subsiding as both nations agreed to end the hostilities, raising hopes for a ceasefire.
The Sensex was up 1,884 points (2.37%) to 81,339.16 by 9:29 am. The Nifty 50 had increased 575 points (2.40%) and touched 24,583. 2,713 stocks rose and 264 declined, indicating a strong upward trend in the market.
Nearly all industries rose, with the exception of the Nifty Pharma index. Pharma shares declined due to the fact that the U.S. President announced that the U.S. would lower prices for drugs. This may harm Indian firms selling generic drugs to the U.S., which is a big market for them.
Small-cap companies also did well. Nifty Smallcap 100 and Midcap 100 both increased by 3%. Best performers in Nifty 50 were Adani Enterprises, Jio Financial, Adani Ports, Shriram Finance, and Trent. Only Sun Pharma and Cipla did not perform well.
Global news also served to improve market sentiment. U.S. and Chinese officials made inroads into easing trade tensions, which provided some comfort for investors. U.S. stock futures were higher, and Asian markets such as Japan and South Korea also advanced.
Foreign investors were selling shares in recent times owing to tensions between India and Pakistan. However, with the ceasefire, foreign investment is likely to return, say experts. For the last couple of weeks, these investors have been purchasing a huge quantity of Indian shares.
