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Markets trade higher over 2.50% following India-Pakistan ceasefire
May-12-2025

Indian equity markets have made a gap-up opening and are trading higher by over 2.50 percent in early morning deals on Monday as investors reacted to easing Indo-Pak tensions. After days of attacks and retaliatory strikes, India and Pakistan have reached a mutual ceasefire. India said it had achieved main objectives and warned of a fierce & punitive response to any future Pakistani violations. A DGMO-level talk with Pakistan will be held at 12 noon later today. Further, positive cues from the other Asian markets also supported domestic sentiments. Sentiments got boost after the White House announced a trade deal with China without providing specifics. On the BSE sectoral front, traders were seen pilling up positions in Realty, Utilities, Power, Metal and Industrials, while selling was witnessed only in Healthcare. 

On the global front, Asian markets were trading mostly in green amid optimism about a potential U.S.-China trade deal. Back home, in the stock specific development, Adani Power surged after the company received a Letter of Award from Uttar Pradesh Power Corporation for procurement of 1,500 MW from a new thermal power project.

The BSE Sensex is currently trading at 81460.15, up by 2005.68 points or 2.52% after trading in a range of 80651.07 and 81470.01. There were 29 stocks advancing against 1 stock declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 2.73%, while Small cap index up by 3.31%.

The top gaining sectoral indices on the BSE were Realty up by 4.65%, Utilities up by 4.49%, Power up by 4.35%, Metal up by 3.56% and Industrials up by 3.48%, while Healthcare down by 0.39% was the losing index on BSE.

The top gainers on the Sensex were Adani Ports up by 4.05%, Axis Bank up by 3.96%, Eternal up by 3.75%, NTPC up by 3.68% and Bajaj Finserv up by 3.65%. On the flip side, Sun Pharma down by 5.01% was the only loser.

Meanwhile, the Confederation of Indian Industry (CII) president Sanjiv Puri has said that India's GDP is projected to grow at 6.5 per cent in the current fiscal (FY26) and the country's economy is resilient enough to overcome the short-term impact of geopolitical issues. He asserted that the country must pursue bilateral trade pacts with key trading partners to protect national interests in the backdrop of increasing trade barriers.

Highlighting that the private investment is picking up across various sectors like energy, transportation, metals, chemicals and hospitality, he said the current geopolitical uncertainties could lead to some cautiousness in investment. He said ‘We are looking at 6.5 per cent. We believe this number can be achieved fundamentally, because the fact is, we are starting with a reasonably good foundation, robust economic foundation.’ He stated ‘In the recent past, interest rates have eased. Inflation is becoming benign. There is this personal income tax concession taking in from the first of April. Investments picked up in public and private space in the latter half of last year.’

Besides, on the high tariffs proposed by US President Donald Trump on several key economies and the trend of rising protectionism globally, Puri acknowledged that ‘more and more barriers to trade are coming in right now’, suggesting that India should do bilateral trade agreements which are mutually beneficial and in the national interest. He said ‘Therefore, the countries that India is pursuing, and the big ones among them, being the US and EU, are important. We should do whatever we have to do from a national interest perspective, and I think, most important is these bilateral trade agreements.’

He also recommended the creation of a three-tier tariff architecture for certain areas to enhance competitiveness. Moreover, he emphasised the need to focus on the domestic drivers of growth and competitiveness. He observed that a lot of work needs to be done on agriculture, climate change and adaptation.

The CNX Nifty is currently trading at 24618.65, up by 610.65 points or 2.54% after trading in a range of 24378.85 and 24620.60. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 6.31%, JIO Financial up by 5.62%, Trent up by 5.09%, Axis Bank up by 4.15% and Adani Ports up by 4.11%. On the flip side, Sun Pharma down by 5.05% and Cipla down by 0.68% were the only losers.

Asian markets were trading mostly higher; Hang Seng advanced 155.1 points or 0.67% to 23,022.84, Shanghai Composite strengthened 12.53 points or 0.37% to 3,354.53, KOSPI increased 11.91 points or 0.46% to 2,589.18 and Taiwan Weighted added 172.06 points or 0.82% to 21,087.10. However, Nikkei 225 slipped 48.95 points or 0.13% to 37,454.38. 
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