Bulls Charge At Opening Bell After India-Pakistan De-escalation; NSE Nifty50, BSE Sensex Up 2.3%

Indian equity benchmarks opened sharply higher on Monday, May 12, buoyed by easing geopolitical tensions and positive global cues with nifty over 24,500 and sensex up by 1800 pts

In the opening bell, the Sensex rallied 1,787.69 points or 2.25% to 81,242.16, while the Nifty surged 547.45 points or 2.28% to 24,555.45. Market breadth was firmly positive, with 2,336 stocks advancing, 268 declining, and 90 remaining unchanged.

Markets rallied today following the announcement of a ceasefire between India and Pakistan, with both nations agreeing to halt all military actions across land, air, and sea. Traders will closely monitor geopolitical developments, as any renewed escalation could weigh heavily on market sentiment and pull indices down. Conversely, continued de-escalation could drive a sharp market recovery.

Among the top Nifty gainers were Jio Financial, Shriram Finance, Trent, Bajaj Finserv, and L&T, while Cipla was the lone stock in the red.

Friday's Sell-Off Driven by India-Pakistan Tensions
The upbeat start came after a volatile session on Friday, May 9, when the market suffered sharp losses amid intensifying India-Pakistan tensions. The Sensex had tanked 880.34 points to close at 79,454.47, while the Nifty50 dropped 265.80 points, ending at 24,008.

US Markets Close Lower Ahead of Key Inflation Data
Meanwhile, Wall Street ended last week in the red, snapping a two-week winning streak. The S&P 500 and Nasdaq Composite dipped 0.5% and 0.3%, respectively, while the Dow Jones slipped 0.2%.
 

Investors are now awaiting key economic data this week, including April’s Consumer Price Index (CPI) on Tuesday, and retail sales and the Producer Price Index (PPI) due Thursday. Rising concerns over trade tensions between the US and China are also on investors' radar after the recent tariff escalation.
 

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Asian Markets Boosted by Hopes of US-China Trade Deal
Asian shares saw gains on Monday after the White House announced a trade deal with China, though specific details remain unclear. Both countries hinted at a positive conclusion to ongoing trade talks.

Hong Kong’s Hang Seng Index led regional gains, climbing 1.03%, while China’s CSI 300 rose 0.89%. South Korea’s Kospi advanced 0.47%, and Australia’s ASX 200 added 0.29%. Japan’s Nikkei 225 and Topix traded flat after paring early gains.