Sensex surges over 2,100 pts, Nifty above 24,650

Mumbai: Sensex and Nifty surged more than 2.7 per cent on Monday in the morning trade after India and Pakistan announced a ceasefire following four days of conflict.

At around 10.11 am, Sensex was trading 2,185 points or 2.75 per cent up at 81,640.01 while the Nifty climbed 672.80 point or 2.80 per cent at 24,680.80.

According to analysts, India’s markets and economy have demonstrated remarkable resilience, consistently transcending external perturbations and geo-political uncertainties.

This strength comes from a steady, domestically-oriented economy, which helps protect against global troubles, showing that every crisis eventually ends.

“A thawing of the relationship between India and Pakistan is likely to trigger a massive rebound for benchmark Nifty in early Monday trades, That said, any fresh violations of the ceasefire deal from Pakistan could keep bullish sentiments fragile,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

India’s efforts to negotiate trade deals will strengthen global business links and help it sell more worldwide, bringing in steady foreign money and making it more competitive. Along with balanced global relationships and strong partnerships, this creates a relatively stable investment place, added Devarsh Vakil, Head of Prime Research at HDFC Securities.

Major indexes finished the last week narrowly mixed. The trade deal announcement between US and UK and reports that U.S. and Chinese officials meeting in Switzerland on the weekend for trade discussions, paved the way for broader negotiations and tariff de-escalation, supported investor sentiment, said experts.

Meanwhile, in the Sensex pack, Adani Ports, Bajaj Finance, Axis Bank, Eternal, Power Grid, NTPC, Bajaj Finserv, Tata Steel, L&T, SBI were the top gainers. Whereas, only Sun Pharma was the top loser.

In the Asian markets, China, Hong Kong and Seoul were trading in green, whereas, Japan was trading in red.

In the last trading session on Friday, Dow Jones in the US declined 0.29 per cent to close at 41,249.38. The S&P 500 declined 0.07 per cent to 5,659.91and the Nasdaq closed at 17,928.92 .

On the institutional front, foreign institutional investors (FIIs), after being net buyers for sixteen consecutive sessions, turned net sellers on May 9, offloading equities worth Rs 3,798.71 crore. In contrast, domestic Institutional Investors (DIIs) remained net buyers, investing Rs 7,277.74 crore on the same day.

–IANS