Mumbai, May 12: Stock market benchmark indices Sensex and Nifty rebounded sharply in early trade on Monday after India and Pakistan announced reaching an understanding to stop all firings and military actions on land, air and sea.
India launched ‘Operation Sindoor’ on early May 7 to destroy nine terror infrastructures in Pakistan and Pakistan-Occupied-Kashmir in retaliation to the Pahalgam terror attack.
After starting the trade on an optimistic note, the 30-share BSE benchmark gauge Sensex further jumped 1,793.73 points to 81,248.20 in early trade. The NSE Nifty surged 553.25 points to 24,561.25.
Later, carrying forward the momentum, the BSE benchmark traded 1,949.62 points higher at 81,398.91, and the Nifty quoted 598.90 points up at 24,606.90.
“A thawing of the relationship between India & Pakistan is likely to trigger a massive rebound for benchmark Nifty early Monday trades, but that said any fresh violations of the cease fire deal from Pakistan could keep bullish sentiments fragile. The constructive trade talks between the US and China may further bolster global sentiment, while key domestic inflation numbers to be released on Tuesday & Wednesday will be in focus ahead of next month’s credit policy,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
India and Pakistan on Saturday announced reaching an understanding to stop all firings and military actions on land, air and sea, with effect from 5 pm that day.
From the Sensex firms, Adani Ports, Eternal, Bajaj Finance, Axis Bank, Bajaj Finserv, Reliance Industries, Power Grid and NTPC were the major gainers.
Sun Pharma, however, tanked over 5 per cent.
In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng were quoting higher while Japan’s Nikkei 225 index traded marginally lower.
US markets ended on a mixed note on Friday.
Global oil benchmark Brent crude climbed 0.52 per cent to USD 64.24 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,798.71 crore on Friday, after remaining net buyers for many days, according to exchange data.
Stock market benchmark indices tumbled over 1 per cent each on Friday as tensions soared between India and Pakistan.
On Friday, the 30-share BSE benchmark gauge tanked 880.34 points or 1.10 per cent to settle at 79,454.47. The Nifty dropped 265.80 points or 1.10 per cent to 24,008.(PTI)
