And When the Bullets Stopped, Bulls Ran Free

India's equity benchmarks jumped nearly 4% on Monday, posting their biggest single-day gain in four years, buoyed by stoppage of hostilities with Pakistan and a truce in the US-China tariff war. The thaw in frosty relations between the world's largest economies revived risk-on sentiment, sending safe-haven assets such as gold tumbling.
#Operation Sindoor
The damage done at Pak bases as India strikes to avenge Pahalgam
Why Pakistan pleaded to end hostilities
Kashmir's Pahalgam sparks Karachi's nightmare
The
BSE Sensex
jumped 2,975 points, or 3.7%, to close at 82,429.9. The NSE Nifty surged 916.7 points, or 3.8%, ending over 24,924. Both indices closed at their highest levels for the year, aided by the sharpest run-up in a day since February 2021.
The rally boosted the market capitalisation of BSE-listed companies by ₹16.9 lakh crore.
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
AI guru Andrew Ng recommends: Read These 5 Books And Turn Your Life Around in 2025
Blinkist: Andrew Ng's Reading List
Undo
Easing of hostilities on both fronts came as a significant reprieve for investors who have been on edge due to uncertainties over the outcome of geopolitical and economic conflicts in the past few weeks. While all Asian markets rallied after the US and China agreed to a 90-day pause on tariffs and slashed levies, Indian bourses got an extra fillip from the halt in fighting with Pakistan, forcing traders to liquidate bearish bets made late last week amid heightened tensions between the neighbours.
Pakistan's main share index soared 9% on Monday. 'Today's (Monday's) market rally is a confluence of positive global and domestic developments — from easing geopolitical tensions between India and Pakistan, to progress on US-China trade talks,' said Taher Badshah, chief investment officer at Invesco Mutual Fund.
Live Events
The Volatility Index (VIX), the market's fear measure, plunged 15% to 18.4, in line with the equities rebound, indicating options traders see lower risks in the near term. Last week, this index had surged over 16% as the Sensex and Nifty declined 1.3% on fears of a full-blown conflict with the neighbouring nation.
The broader market also ended strong, with the Nifty Midcap 150 jumping 3.75% and the Nifty Small-Cap 250 gaining 4%. Of the 4,254 stocks traded on the BSE, 3,545 advanced, while 576 declined.
The bullish momentum may push the markets higher in the days ahead, but fund managers do not rule out intermittent sell-offs. 'The market could see small doses of correction over the next few days after this massive rally,' said Badshah. 'But what has changed now is that it's now more of a buy-on-dips market, rather than a sell-on-rise market.'
The Sensex and Nifty are up nearly 13% since April 7, when the recent rebound started after Trump halted tariffs on imports from most countries, barring China, for 90 days.
Gold, one of the best performers in recent times because of its safe-haven status, slumped nearly 3% on Monday in response to the pause in the US-China tariff conflict. 'For investors, our view is that a clear framework of disciplined asset allocation matters more than reacting to noise,' said Neelesh Surana, chief investment officer at Mirae Asset Investment Managers.
All sectoral indices in India ended in the green, with metals, realty, power, IT, and energy stocks leading the charge, rising between 4% and 6%.
Foreign portfolio investors (FPIs) remained net buyers, purchasing shares worth Rs 1,246.5 crore on Monday. Domestic institutional investors (DIIs) also contributed to the rally, investing Rs 1,448.4 crore during the day.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

an hour ago

• Time of India

Air India suspends Pune-Singapore direct flight until July 15

Pune: Air India, which is under scrutiny from all quarters following the Ahmedabad plane crash, announced on Sunday that it suspended the direct Pune-Singapore flight until July 15. Tired of too many ads? go ad free now The Pune-Singapore flight was launched by the erstwhile Vistara in Dec 2022. The flight, now operating as AI-2111, flew four days a week using an Airbus A-321 aircraft. It used to take off from Pune at 0210 hours (IST) and landed in Singapore at 10.30 hours (GMT). This flight was inaugurated online by former Civil Aviation Minister Jyotiraditya Scindia. The airline stated that this was part of its overall reduction in narrow-bodied operations by less than 5%. "This voluntary decision leads to the temporary suspension of Air India's services on three routes and a reduction in frequency on 19 routes. The changes are effective until at least July 15. These reductions aim to strengthen Air India's network-wide operational stability and minimise last-minute inconvenience to passengers," an airline press statement said. Other international flights suspended by Air India include a flight between Bengaluru and Singapore. Additionally, a domestic flight between Mumbai and Bagdogra has also been suspended. The frequency of 19 domestic flights, including one between Pune and Delhi, has been reduced. Amitabh Kumar, who was scheduled to fly to Singapore on the flight on Monday, wrote on X, "My Pune–Singapore direct flight on June 23 is cancelled now, and the alternative offered has delayed me by more than 8 hours. The airline informed me just 12 hours prior—no hotel, no care, no compensation," he wrote. Tired of too many ads? go ad free now Sushil Arya, who was scheduled to fly on Sunday, said, "They just cancelled the flight a day before. Why has it been cancelled like this a day before?" he asked the airline on X and received the response that the cancellation was for operational reasons. "I have been trying to book the flight for Aug 25, but cannot see the flight. I don't understand whether it will be restored after July 15 or not," another flyer told TOI. The suspension of the flight has left Pune with just four direct international flights, down from five. "The flight was good and gave us the opportunity to travel not just to Singapore, but many other countries in Southeast Asia via Singapore. We hope that the flight is restored," Amol Dayal, a businessman, said.

Business Standard

an hour ago

• Business Standard

Street Signs: Nifty's new conquest, SME bankers under regulatory scalpel

Samie Modak Khushboo Tiwari Mumbai Listen to This Article The 25K wall falls:Nifty's new conquest The Nifty 50 index broke new ground, closing 'decisively' above the 25,000 mark for the first time since September 2024. Market observers interpret this as a bullish signal, potentially paving the way for the index to reach record highs. Devarsh Vakil, head of prime research at HDFC Securities, noted that Nifty's breakout above 25,000 marks a positive short term trend. Immediate resistance is at 25,222, while support has shifted to 24,900. Dhupesh Dhameja, derivatives research analyst at Samco Securities, added that a firm close above 25,250 could boost upward momentum, targeting 25,500. Unless the

Time of India

2 hours ago

• Time of India

Sebi slaps Rs 29 lakh fine on IAGF, trustee for AIF rules violation

Capital markets regulator Sebi has imposed penalties totalling Rs 29 lakh on six entities, including India Asset Growth Fund, its manager Essel Finance Advisors and Managers, and trustee Vistra ITCL (India) for multiple violations of AIF rules. The regulator levied a fine of Rs 11 lakh on IAGF, Rs 10 lakh on Arpan Sarkar and Jaykishan Kikani (jointly and severally), Rs 6 lakh on Vistra ITCL (India), and Rs 2 lakh on Essel Finance Advisors and Managers (EFAM), its Chief Executive Officer Vishnu Prakash Rathore (jointly and severally). The regulator, in a 39-page order, found the entities guilty of serious lapses in regulatory compliance during the inspection period from April 2021 to March 2022, Sebi said in the order on Friday. The markets watchdog observed that India Asset Growth Fund (IAGF) failed to disclose disciplinary actions and litigation history of its sponsor, manager, trustee, and key officials in its placement memorandum (PPM), as mandated under the norms. Later, the fund submitted a revised PPM containing such disclosures during a change of control application, which was neither approved nor circulated to investors, resulting in a breach of the disclosure framework of the code of conduct of the alternative investment fund (AIF) regulations. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Mendaftar Undo Sebi also pulled up the fund for providing valuations based on underlying assets instead of the securities it held, as well as for delayed registration with the Financial Intelligence Unit (FIU-IND), non-disclosure of the investor charter and distribution waterfall, and a 10-day delay in filing its PPM audit report. The regulator found that the fund took over a month to respond to an investor grievance, breaching the 30-day deadline. It noted that although the fund eventually completed the winding-up process and distributed proceeds to all investors by January 2024, the regulatory breaches were material. The regulator concluded that the violations had the potential to mislead investors, and disrupt regulatory oversight of AIFs. Sebi highlighted that EFAM being manager of IAGF is responsible for such non-compliances. It noted that Rathore, Sarkar and Kikani were the key managerial personnel who failed to abide by the code of conduct as per the rules. Therefore, the allegations against them stand established. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now