Closing Bell: BSE Sensex Soars 2,975 Points, Nifty 50 Rallies 866 Pts In Biggest Jump Since 2021 - 5 Reasons Behind Rally

Stock Market Closing Bell: The Indian stock market saw a big rally on Monday, May 12. The Sensex jumped 2,975 points (3.74%) to close at a record high of 82,429.90.

The Nifty 50 also gained 865.90 points (3.61%) to finish at 24,873.90, marking their biggest single-day gains since February 1, 2021. Overall, the Sensex, Nifty rose to their highest level in the last 7 months in today's trade.

The strong gains were driven by easing tensions between India and Pakistan, progress in U.S.-China trade talks, and strong global cues.

Sectoral Performance

Indian sectors performed well across the board. Nifty IT was the top performer with a 6.7% rise, followed by Nifty Realty (5.93%) and Nifty Metal (5.86%).

Nifty Energy, Financial Services, and Private Banks each gained over 3%. The only sector that stayed mostly flat was Pharma, which rose just 0.15%.

Top Gainers And Losers

On BSE, leading gainers included Infosys (+7.67%), HCL Tech (+5.97%), Tata Steel (+5.64%), TCS (+5.42%), and Tech Mahindra (+5.36%).

Other major stocks like ICICI Bank, Reliance, Axis Bank, and Bajaj Finance rose over 4%. On the other hand, Sun Pharma (-3.14%) and IndusInd Bank (-3.38%) were among the few losers.

Also Read: US and China Agrees To Cut Reciprocal Tariffs After Lake Geneva Talks

Market Breadth and Trading Activity

The market showed strong positive breadth. On the NSE, 2,614 stocks advanced, while only 329 declined. About 67 stocks remained unchanged. A total of 47 stocks hit new 52-week highs, while 24 stocks hit their 52-week lows.

Around 322 stocks hit their upper circuit limit, showing strong buying interest, while 35 stocks were in the lower circuit.

Key Reasons Behind the Market Rally:

India-Pakistan Ceasefire Boosts Sentiment

Over the weekend, India and Pakistan agreed to a ceasefire after recent clashes along the border. This followed India’s response to a terror attack in Pahalgam.

The news of the ceasefire calmed investors and brought back confidence to the markets, which had been nervous due to the rising tensions.

Breakthrough in US-China Trade Talks

The U.S. and China reached a temporary agreement during talks in Geneva. Both countries decided to pause new tariffs for 90 days.

The U.S. will reduce tariffs on Chinese goods from 145% to 30%, while China will lower duties on American goods from 125% to 10%. U.S. Treasury Secretary Scott Bessent said both countries wanted balanced trade and did not want to cut off economic ties.

Strong Global Cues and US Futures Rally

U.S. stock futures rose sharply after the U.S. and China reached a temporary agreement. S&P 500 futures gained 2.6%, and Nasdaq 100 futures jumped 3.8%.

Oil Prices 

Oil prices also rose after the U.S.-China trade breakthrough. Brent crude went up by $2.11 to $64.14 per barrel, while WTI crude rose by $2.12 to $63.14.

Global Markets

Asian markets responded positively—Hong Kong's index jumped 3%, and South Korea's Kospi rose 1.2%.

European markets like Germany's DAX, France's CAC 40, and the UK's FTSE 100 also saw good gains. Japan, Australia, and Taiwan posted smaller but positive gains.