Markets liftoff after jets are grounded; Sensex, Nifty rises over 3%

Indian equity benchmarks skyrocketed on Monday, posting their largest-single-day gains in over four years, following a ceasefire understanding between India and Pakistan after four days of intense fighting. The de-escalation of trade tensions between China and the US also contributed to the positive sentiment.
Both the benchmark and broader indices recorded their best gains in years. The Sensex closed at 82,430, up 2,975 points or 3.7 per cent. The Nifty ended at 24,925, rising by 917 points or 3.8 per cent. For both indices, these were the highest since February 2021.
In terms of points gained, Monday's performance was the best ever.
The broader Nifty Midcap 100 rose by 4.1 per cent, its best single-day gain since June 5, 2024, while the Nifty Smallcap 100 jumped 4.2 per cent, its highest since February 25, 2022. The total market capitalisation of BSE-listed firms soared by over ₹16 trillion to ₹432.6 trillion. Investor optimism was also seen across the border, with Pakistan's equity benchmark KSE 100 surging 9.1 per cent.
Investors were relieved as the ceasefire between India and Pakistan eased concerns about the economic impact of a potential war between the two nuclear-armed neighbours. The truce came after days of intense fighting involving missiles and drones.
"Ceasefire is the primary reason for the rally. It is natural for markets to react strongly to such developments. Going forward, we are cautiously optimistic, but much depends on the ceasefire holding," said Chokkalingam G, founder of Equinomics.
However, some experts believe Monday's rally was driven by a combination of geopolitical realignment, earnings acceleration, and easing trade tensions.
"Today's rally reflects broader optimism rather than just the Indo-Pak ceasefire. Last week's correction was mild and orderly, more of a breather after the March rally. The sharp bounce-back is rooted in improving fundamentals, not just sentiment. We are seeing resilient fourth quarter (Q4) earnings, steady performance in key sectors, and improving visibility for the next few quarters," said Harish Krishnan, co-CIO and head of equity at Aditya Birla Sun Life AMC.
Global markets also rose after the US and China temporarily lowered tariffs on each other's products. The easing of trade tensions led to the strengthening of US assets. The dollar index rose 1.3 per cent to hit a one-month high of 101.6. The 10-year US bond yield increased by 1.75 per cent, trading at 4.45 per cent. Meanwhile, gold declined by 3 per cent, trading at $3,227.3 per ounce.
The market breadth was strong, with 3,541 stocks advancing and 582 declining. The India Vix index, a gauge of market volatility, fell 15 per cent to 18.4, snapping its four-session gain.
All sectoral indices ended with gains, with the IT stocks emerging as the best performers, spurred by optimism over the US economy. The Nifty IT index gained 6.7 per cent. On the other hand, the Nifty Pharma index underperformed, rising just 0.15 per cent following the US' move to lower drug prices.
Looking ahead, the remainder of the corporate results, sustainability of foreign portfolio investor (FPI) flows, stable monsoons, and potential trade deals with the US will provide further momentum to the market rally.
"Markets may consolidate from here, but the overall trend remains positive. The rally's sustainability will depend on earnings momentum, policy continuity, and continued global interest in India as an investment destination," said Krishnan. FPIS were net buyers on Monday, worth Rs 1,246 crore, while domestic institutions were net buyers to Rs 1,448 crore.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

India Gazette

43 minutes ago

• India Gazette

Proposed dilution of local content rules may hurt Indian telecom firms, benefit MNCs: GTRI

New Delhi [India], June 22 (ANI): Major dilutions to local content rules for the telecom sector under the Public Procurement Order could negatively impact Indian firms by giving greater access to multinational corporations (MNCs) in government contracts without manufacturing in India, according to the Global Trade Research Initiative (GTRI) . The GTRI in a note further said that the move will benefit major foreign MNCs active in the Indian telecom component industry. Earlier this month, on June 3, the Department of Telecommunications (DoT) initiated a public consultation to revise its Public Procurement (Preference to Make in India) (PPP-MII) Order for the telecom sector. The consultation, open to industry comments until July 3, proposes a series of technical adjustments to the existing local content (LC) framework -- changes that could have far-reaching consequences for the sector's future. 'Department of Telecommunications (DoT) is moving to relax local content norms for government telecom procurement -- a shift that could favour multinational corporations (MNCs) like Cisco and Ericsson while undermining Indian manufacturers who have invested in domestic production and innovation,' GTRI's note added prepared by former Indian Trade Service Officer, Ajay Srivastava said. It added that MNCs are 'lobbying India's Department of Telecommunications (DoT) to ease local content (LC) requirements, as they struggle to qualify as Class-I local suppliers for government telecom tenders.' India's current PPP-MII policy, which was first updated in October 2024, mandates that any firm seeking preference in government telecom tenders must meet a minimum 50 per cent local content threshold. Srivastava added in the note that in order to qualify as a 'Class-I' supplier and enjoy pricing and selection advantages, firms must demonstrate that at least 50 per cent of a product's value is sourced or manufactured in India which has become a difficult task for MNCs. The PPP-MII policy applies to 36 key telecom product categories -- including routers, ethernet switches, GPON devices, media gateways, customer premises equipment (CPE), satellite terminals, telecom batteries, and optical fibre and cables. Under the current PPP-MII framework, several exclusions apply to the calculation of local content. Imported parts routed through Indian resellers, royalties, overseas technical fees, and refurbished products do not count toward Indian value addition. Design and software work performed in India is permitted, but the value generated is capped, with restrictions in place to prevent companies from inflating LC percentages purely on the basis of R&D activities while continuing to import most hardware components. Srivastava added in the note that global majors are finding it 'difficult to meet these thresholds.' He further added that the underlying issue is that most of the work performed in India is done on an outsourcing basis for their foreign parent companies. The parent companies retain ownership of intellectual property (IP) and earn the bulk of profits. Highlighting the impact of policy change, GTRI note said that the move will put Indian telecom firms -- who have made long-term investments in Indian-based manufacturing, R&D, and IP development -- at a severe disadvantage. 'Such Indian firms would face the prospect of losing market share to foreign MNCs whose products remain largely imported and foreign-owned,' the GTRI note added. It further points out that dilution of standards would discourage Indian firms from investing in genuine IP creation, as Class-I status could now be achieved simply through superficial assembly or software wrapping of imported goods. 'India's telecom sector would remain reliant on foreign technologies, with little strategic control,' the GTRI note added. (ANI)

India Gazette

43 minutes ago

• India Gazette

India's agrochemicals market eyes $14.5 billion by 2028 with 9% CAGR: Report

New Delhi [India], June 22 (ANI): India's agrochemicals industry remains resilient and is projected to grow to USD 14.5 billion by 2027-28, with a CAGR of 9 per cent, despite global headwinds, according to a report by Rubix Data Sciences -- a leading provider of risk management and monitoring solutions. CAGR is Compound Annual Growth Rate. According to the report, India's agrochemical industry is valued at USD 11.2 billion in 2024-25, having grown 8.7 per cent year-on-year despite a challenging global environment. Exports saw a sharp 22 per cent decline in 2023-24, driven by global inventory destocking, aggressive price competition from China, and weak demand in major markets. As global supply chains stabilise and agricultural activity rebounds, a moderate recovery is projected in 2024-25, supported by improved demand and cost-competitive manufacturing by Indian players. One of the key trends highlighted in the report is the rapid growth of herbicide exports, which recorded a 20 per cent CAGR from 2019-20 to 2024-25. Their share in India's total agrochemical exports rose from 31 per cent to 37 per cent over this period. According to the report released this week, the shift reflects both rising global demand fueled by the growing cost of agricultural labour--and India's strength in producing affordable, effective crop protection solutions. Japan has now overtaken Brazil as the second-largest export destination for herbicides, while the US and Brazil continue to lead as key markets for insecticides and fungicides. 'The drop in agrochemical exports over the past year has definitely been a setback, but it's also part of a larger global reset,' said Mohan Ramaswamy, Co-founder and CEO at Rubix Data Sciences. 'What we are seeing now is Indian manufacturers adapting fast, whether it's by improving cost efficiency, diversifying portfolios, or tapping into new markets. The sector is resilient, and we believe the recovery underway will be steady and sustainable. At Rubix, we are committed to helping businesses make sense of these shifts through data-led insights that support smarter decisions and long-term growth,' Mohan Ramaswamy added. (ANI)

Hindustan Times

an hour ago

• Hindustan Times

Dubai man trolled for inviting IIM students to work for free: ‘No stipend, get real-world exposure'

A Dubai-based Indian professional has sparked a wave of backlash after inviting MBA students from India's top business schools to apply for an unpaid short-term project. Sahil Deshmukh's LinkedIn post on a 'no stipend' position for MBA students was met with outrage, with many calling it a slap in the face of students who spend lakhs and work hard to secure admission to B-schools like the IIMs and XLRI. Unpaid internship for IIM students? Hiring post draws flak (Representational image) Deshmukh, who works as a Manager in the Global CEO's Office at Erba Mannheim, is himself a graduate of IIM Lucknow. In a post shared on LinkedIn one day ago, he announced a vacancy for MBA students from top institutions like the Indian Institute of Management and the Faculty of Management Studies, Delhi. 'Looking for MBA students from IIMs, FMS, SPJIMR, XLRI, MDI, or other top B-schools for a short-term live project,' Deshmukh wrote. 'It's a 3-4 week remote project with no stipend, but a good opportunity to work closely with the leadership team on strategic initiatives,' the Dubai-based employee revealed. He called the position 'Ideal for someone looking to get real-world exposure and contribute meaningfully.' The backlash The backlash was swift, massive and entirely expected. In the comments section of the post, many called out Deshmukh for expecting MBA students to work for free. has reached out to him for a statement. This copy will be updated on receiving a response. 'Let's put an end to the exploitation of unpaid internships. As Indians, it's time we speak up against a toxic work culture that normalizes offering no stipend in exchange for full-time effort,' wrote one LinkedIn user. 'And the saga of unpaid work (in the name of 'gaining experience'), keeps on thriving. Quite sad,' another said. 'Pay. It's not a difficult thing to do. Don't loot people in the name of experience,' LinkedIn user Piyush said. 'You want people from top B-schools to put their heart and soul into a project , 'contribute meaningfully' but with no stipend? Crazy,' another added. The post also reached Reddit, where reactions were overwhelmingly negative. 'Getting freshers with no experience a start is different, hiring generic MBAs is different. But asking for tier 1 MBAs and refusing to pay them is crazy,' a user said.