Sensex Up 2,200 Points As Markets Open For First Time Since Ceasefire

Indian equities saw a strong rally as the markets opened for the first time this morning since India and Pakistan announced a ceasefire after weeks of heightened tensions in the aftermath of the Pahalgam terror attack.

Sensex, the 30-share index of the Bombay Stock Exchange (BSE), opened 1,500 points, or 2%, higher, indicating a strong demand despite underlying concerns in the thawed relations of the two nuclear-armed neighbours. Nifty50, the benchmark of the National Stock Exchange (NSE) comprising the country’s top 50 companies, went up 500 points in 15 minutes in the run-up to the 9:15 am opening bell.

By 9:40 am, Sensex had shot up 2,000 points while Nifty was 600 points higher than its last closing level. India and Pakistan announced a ceasefire on Saturday evening, but incidents of violation by Pakistan were reported hours later. Sunday night remained largely peaceful, the Indian Army said this morning.

The markets showed extreme resilience and witnessed only limited losses during the conflict. India’s clear superiority in warfare and its inherent resilience, supported by global and domestic macros, worked in favour of Indian equities, according to experts.

The gains also come after the US announced a deal with China to meet their trade deficit. The announcement added gains to Asian markets and boosted the dollar.