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Indian stock markets witnessed a strong rally on Monday morning after India and Pakistan agreed to cease hostilities over the weekend. Investor sentiment turned positive as the two nations reached an understanding on Saturday, leading to a significant boost in market confidence. The benchmark Nifty 50 index opened at 24,420.10, marking a rise of 412.10 points or 1.72 per cent. The BSE Sensex also opened sharply higher at 80,754.37, up nearly 1,300 points or 1.64 per cent. Robust domestic inflows and easing geopolitical risks drove renewed investor interest across key sectors.
Indices Reflect Broad-Based Buying
The rally extended across broader indices, with the Nifty 50 and Sensex showing strong early gains. Sectoral indices traded in the green, except for the pharma segment. The Nifty PSU Bank index jumped over 3 per cent, showing investor interest in public sector lenders. Nifty Auto rose by 2.25 per cent, and Nifty IT advanced by 2.16 per cent. Nifty Realty outperformed all, gaining over 4 per cent in early trade.
Experts Highlight Market Resilience
Ajay Bagga, Banking and Market Expert, told ANI, “Indian futures are pointing to a sharp 2 per cent up-move, as all the losses due to the India Pak kinetic conflict are made up on the back of the cessation of active hostilities in the region. Indian markets weathered the turbulence quite well and are set to recover smartly today.”
He added, “Overall, tourism in North India is the biggest impacted sector with mass cancellations in the peak summer holidays season impacting important tourist hubs. Defence stocks should see buying interest with fresh orders expected. Sentiment remains fragile geopolitically, but the resilience of the Indian markets point to a potential strong rally in the near future, with both FPIs and DIIs staying buyers.”
Global Sentiment Adds to Optimism
Favorable global cues supported the rally. The US and China called their weekend trade talks in Geneva “productive and positive,” lifting global sentiment. Asian markets opened higher on hopes of a US-China trade deal. Gold prices fell by over 2 per cent, while oil and the US dollar moved higher. US stock futures pointed to a gain of over 1 per cent on Wall Street.
Pharma shares may face pressure as US President Donald Trump is expected to sign an executive order to lower prescription drug prices. Trump also begins his Middle East tour on Tuesday, with key strategic announcements expected.
(With Inputs From ANI)
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