New Delhi, May 12 – Investors on Dalal Street witnessed a massive wealth surge of Rs 16.15 lakh crore on Monday as the markets rallied nearly 4 percent, driven by easing geopolitical tensions and renewed global trade optimism.
The surge followed the joint announcement by India and Pakistan to cease all military actions across land, air, and sea, a development that significantly boosted investor morale. Additionally, a fresh trade agreement between the United States and China further uplifted global sentiment, fueling buying across sectors.
Sensex Posts Biggest Single-Day Gain in Over Four Years
The BSE benchmark Sensex surged by 2,975.43 points, or 3.74 percent, to close at 82,429.90. During intraday trade, the index hit a high of 82,495.97, gaining 3,041.5 points or 3.82 percent.The total market capitalisation of BSE-listed companies jumped to Rs 4,32,56,125.65 crore (approximately USD 5.05 trillion), reflecting an increase of Rs 16,15,275.19 crore in a single session.
"Confluence of positive geopolitical and economic developments — the ceasefire between India and Pakistan, coupled with a breakthrough trade agreement between the US and China — sparked the strongest daily market rally in recent times," said Vinod Nair, Head of Research at Geojit Financial Services.
Broad-Based Rally Across Sectors
All sectoral indices closed in the green, led by:- Information Technology: up 6.75%
- BSE Focused IT: up 6.74%
- Realty: up 5.87%
- Metal: up 5.24%
- Teck: up 5.21%
- Utilities: up 5.07%
- Power: up 4.82%
- Industrials: up 4.24%
"Markets staged a sharp rebound on Monday, buoyed by easing geopolitical tensions after the India-Pakistan ceasefire. Benchmark indices posted their strongest single-day performance in over four years," said Vikram Kasat, Head – Advisory at PL Capital.
Nifty Hits Seven-Month High
The NSE Nifty climbed a record 917 points to close at 24,925, marking a seven-month high. Ajit Mishra, SVP – Research at Religare Broking Ltd, noted that the ceasefire announcement coupled with US-China trade progress drove the rally."Markets opened the week on a strong footing, driven by supportive global and domestic cues. The key trigger was the ceasefire between India and Pakistan, while encouraging updates on the US-China trade deal further strengthened investor confidence as the session progressed," he added.
Market Breadth Strong
Out of the total traded stocks on BSE, 3,545 advanced, 576 declined, and 133 remained unchanged, indicating robust market breadth."Indian equities made spectacular gains on Monday. The de-escalation in India-Pakistan tensions over the weekend significantly calmed investors’ nerves. On the global front, the US and China agreeing to roll back tariffs on each other’s goods for 90 days further added to the rally," said Siddhartha Khemka, Head – Research, Wealth Management at Motilal Oswal Financial Services.
With geopolitical risk easing and global economic ties improving, markets are expected to maintain positive momentum in the near term.
