Sensex Today | Nifty 50 Today | Indian Stock Market : Domestic stock markets surged over 2 per cent on Monday driven by positive sentiment after a ceasefire was announced by India and Pakistan and as US and China reached a trade deal.
The BSE’s 30-share Sensex rose 2.39 per cent, or 1896.28 points, to 81,350.75 in early morning trades. The Nifty 50 gained 2.52 per cent, or 605.2 points, to 24,613.2.
“A thawing of the relationship between India and Pakistan is likely to trigger a massive rebound for benchmark Nifty early Monday trades, but that said any fresh violations of the ceasefire deal from Pakistan could keep bullish sentiments fragile,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
The constructive trade talks between the US and China may further bolster global sentiment, analysts said. On Sunday, the White House said that the US and China have reached a trade deal in Geneva after the two-day long trade talks between the two countries.
“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 Devarsh Vakil, Head of Prime Research at HDFC Securities.
US President Donald Trump has announced that he will sign an executive order Monday aiming to lower medication costs. The directive would instruct HHS (Health and Human Services) and to benchmark medicare payments for physician-administered drugs against the lowest international prices.
If implemented, this policy would significantly reduce revenue for US pharmaceutical companies and their Indian suppliers. Indian pharmaceutical exporters will take a hit in Monday’s trading session, said Vakil.
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India VIX, an indicator of the market’s expectation of volatility over the near term, declined 18.42 per cent to 17.65 in the morning trades.
The NSE firms that gained the most included Adani Enterprises (6.68 per cent), Jio Financial Services (5.09 per cent), Adani Ports (4.35 per cent) and Shriram Finance (4.35 per cent).
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