Nifty gains 3.68%, highest since Feb 2021, Sensex at 2848 pts gain; all sectors in green with IT leading
A Relief Rally Fueled by Peace Prospects
Markets opened gap-up this morning, riding on early speculation about diplomatic breakthroughs. By mid-session, confirmation of the Indo-Pak ceasefire sent a strong wave of optimism across Dalal Street. Traders and long-term investors alike rushed to buy into the market, leading to a broad-based rally.
The Sensex closed at 82,150, up 2,900 points or 3.66%, while the Nifty ended at 24,925, up 825 points or 3.42%. The rally was led by banking, defence, and infrastructure stocks — sectors expected to benefit most from peace and renewed policy focus on economic development.
Sectoral Surge
Banking stocks were the biggest gainers of the day, with the Nifty Bank index jumping over 4.5%. HDFC Bank, ICICI Bank, and SBI saw massive buying interest. Investors see the easing of geopolitical tensions as a green light for credit expansion and investment activity, especially in border and rural areas.
Defence stocks, which had been under pressure during the conflict period, bounced back strongly. Bharat Electronics, Hindustan Aeronautics, and Larsen & Toubro all ended 5–7% higher amid expectations of renewed modernization initiatives and cross-border project participation.
Infrastructure and energy also saw strong traction. Companies like Adani Ports, NTPC, and Power Grid rallied on expectations of resumed regional cooperation and energy corridor talks.
Rupee Strengthens, Bond Yields Cool
The Indian Rupee appreciated by 47 paise to close at ₹82.10 per USD, its best level in over a month, reflecting the improved risk sentiment and the likelihood of increased foreign inflows. Government bond yields also eased, with the 10-year yield falling to 6.85%, indicating investor confidence in fiscal stability.
Global Reaction
Global markets reacted positively to the ceasefire as well, with emerging market indices in Asia and Europe in the green. Analysts believe that the Indo-Pak truce could lead to greater regional cooperation in South Asia, encouraging foreign investment and trade.
Outlook: Calm After the Storm?
While today’s rally reflects genuine relief, experts caution investors to remain grounded. “This is a strong sentiment-driven upmove, but sustained gains will depend on how the ceasefire unfolds in practice,” said Anjali Mehta, Head of Research at Meridian Securities. “If peace holds and policy follows suit, we could be entering a golden phase for Indian equities.”
Still, for now, the bulls have reclaimed control of the market. And with the geopolitical cloud lifting, the stage may be set for a strong finish to the quarter.
Disclaimer: This blog is for informational purposes only and should not be construed as investment advice. Always consult your financial advisor before making investment decisions.
Leave a Reply