ET Market Watch: Sensex soars nearly 3,000 points! Ceasefire & global cues trigger record rally
Transcript
Indian equities surged over 3.7% on Monday, marking their strongest session in nearly a year as easing India-Pakistan border tensions, progress on the US-China trade front, and positive domestic cues fuelled broad-based buying.
The BSE Sensex rallied 2,975 points (3.74%) to close at 82,429.90, while the Nifty 50 jumped 916 points (3.82%) to end at 24,924.70. Investor wealth rose by ₹15.46 lakh crore as BSE's market cap hit ₹432.47 lakh crore.
What Drove the Rally: 7 Key Factors
1. India-Pakistan Ceasefire
A weekend ceasefire brought relief from escalating cross-border tensions, sparking risk-on sentiment and a sharp rebound from last week's losses.
2. US-China Trade Breakthrough
A 90-day pause on new tariffs and reduced existing duties lifted global markets. The move signaled de-escalation in a prolonged trade war, boosting investor confidence.
3. Record SIP Inflows
Domestic mutual fund SIPs hit a record ₹26,632 crore in April, with FY25 flows up 45% YoY. Resilient retail participation helped sustain the rally.
4. India's Credit Rating Upgrade
Morningstar DBRS raised India's sovereign rating to *BBB (Stable)*, citing stronger macro fundamentals—reinforcing the nation's investment appeal.
5. Broad-Based Sectoral Gains
All major indices ended in the green. Nifty IT led with 6.7% gains, followed by Realty (5.9%), Auto (3.4%), and PSU Banks (3.3%). Mid- and small-caps rose over 4%.
6. Technical Breakout
The Nifty broke out of consolidation zones with strength above 24,350. Analysts see potential for an extension towards 25,350–25,750 in the near term.
7. Rising Oil Prices on Trade Optimism
Brent crude rose 3.2%, lifting energy stocks and supporting a positive global outlook.
While Monday's rally reflects improved sentiment, analysts remain cautious amid geopolitical uncertainties. Consolidation may follow, but strong domestic flows and broad participation could keep the momentum alive—especially in mid- and small-cap stocks.
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