5 hours ago
Buoyed by the India-Pakistan ceasefire, Indian benchmark indices Sensex and Nifty50 witnessed a strong gap-up opening on Monday (May 12). The Nifty50 index opened higher at 24,420 and touched an intraday high of 24,806, recording a gain of over 750 points.
Both the Sensex and Nifty rose 4% each, marking their best single-day performance in four years since February 2021. After opening 412 points higher, the Nifty extended its gains through the session and closed near the day’s high.
The Sensex and Nifty ended at their highest closing levels of 2025 so far, reaching a seven-month high.
BSE-listed companies added nearly ₹16 lakh crore in market capitalisation on Monday, pushing the total market cap of BSE-listed firms back above the $5 trillion mark.
The mid- and small-cap segments outperformed the benchmark indices. The Nifty Midcap 100 and Nifty Smallcap 100 indices surged over 4% each.
All the sectoral indices ended in the green with realty, power, IT, and energy up between 4% and 6%.
Apart from thawing geo-political uncertainties, the US-China trade deal, the US-UK trade deal, the India-UK FTA (Free Trade Agreement), and strong AMFI data are fuelling investors' sentiment, said Devarsh Vakil of HDFC Securities.
IT and Metal stocks saw huge gains following US-China tariff decisions. The Nifty IT index rose more than 7% to record the biggest single-day gain in five years.
The US and China agreed to drastically roll back tariffs on each other’s goods for an initial 90-day period. The US will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, while China will cut its levies on American imports from 125% to 10%, according to the joint statement.
US stock futures rose after the White House announced a trade deal with China. Futures tied to Dow futures jumped 805 points, or 2%, S&P 500 futures rose 145 points, or 2.5%, and Nasdaq 100 futures climbed 665 points, or 3.3%.
Going ahead, market attention will shift to earnings reports from Tata Motors, Cipla, Bharti Airtel, Gail (India), Hero Motocorp, Bharti Hexacom, Aditya Birla Capital, Siemens, Dalmia Bharat Sugar and Industries, and Arkade Developers.
Additionally, stocks like SRF, Ather Energy, among others will also be in the spotlight tomorrow, as these companies reported their Q4 numbers after market hours on Monday.
LKP Securities' Rupak De said the Nifty witnessed its best day in four years as multiple positive news developments triggered a risk-on sentiment. Technically, the index has broken out of recent consolidation across multiple timeframes, confirming a positive trend.
Additionally, it continues to sustain above a crucial moving average. Going forward, any dips are likely to be bought into as long as the index remains above 24,350, De said. "On the higher end, this leg of the rally might extend towards 25,350/25,750 in the short term."
According to Vakil, the Nifty surpassed the crucial resistances of 24,589 and 24,857 and closed above them. Next resistance for the index is seen at 25,207, which happens to be a 76.4% retracement of the entire fall from 26277 to 21743. Support has now shifted upwards to 24,590.
"Technically, the sharp rise in the Nifty marks a continuation of the uptrend following a three-week consolidation phase. Having crossed the previous swing high of around 24,857, the index is now poised to inch towards the 25,200 level, while the 24,400–24,600 zone is expected to offer strong support on any dip," said Ajit Mishra of Religare Broking.
