Benchmark indices staged a powerful rebound on Monday, May 12, as a ceasefire announcement between India and Pakistan eased geopolitical jitters and reignited investor optimism. The BSE Sensex surged 2,975 points to close at 82,596, while the Nifty 50 rallied 733 points to end at 24,925, reclaiming crucial psychological levels.

Ceasefire triggers broad-based buying; all sectors in the green

Markets soared after the official confirmation of an immediate cessation of hostilities between the two nations, triggering a relief rally across global and domestic equities. All sectoral indices on the NSE closed in the green, with Nifty Realty and Nifty Power leading the charge—up 4 to 6 per cent each.

Heavy buying was also seen in IT, infra, banks, and auto stocks, while defensive plays like pharma saw mild pressure.

Midcaps, smallcaps shine bright

The rally extended to the broader markets as well. The BSE Midcap and Smallcap indices gained 3 to 4 per cent, outperforming frontline benchmarks and signalling strong risk-on sentiment among investors.

Top movers on the Nifty 50

Among the top gainers on the Nifty were:

• Infosys

• Adani Enterprises

• Shriram Finance

• Trent

• HCL Tech

On the flip side, Sun Pharma and IndusInd Bank were the only laggards on the index.

FIIs remain net buyers; VIX cools off

India VIX, the volatility index, cooled off by over 10 per cent during the session, reflecting a sharp drop in near-term fear. Foreign institutional investors (FIIs) continued their buying streak amid easing tensions and supportive global cues.

Outlook: With the geopolitical overhang now receding and earnings season in full swing, analysts expect market momentum to remain strong, led by sectors like IT, infrastructure, and consumption.

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