Stock markets log biggest single-day rise after suspension of India-Pak hostilities

Sensex and Nifty surge nearly 4% on India-Pakistan ceasefire and US-China tariff deal, marking biggest single-day gains.

Benchmark stock indices Sensex and Nifty recorded their biggest single-day gains in absolute terms on Monday (May 12, 2025), skyrocketing nearly 4%, after India and Pakistan reached an understanding to stop military actions and U.S. and China announced a deal to lower tariffs significantly.

After opening on a high note, the 30-share BSE Sensex soared by 2,975.43 points or 3.74% to settle at a more than seven-month high of 82,429.90. During the day, it rallied 3,041.5 points or 3.82% to a high of 82,495.97.

The 50-issue Nifty of NSE skyrocketed 916.70 points or 3.82% to close at 24,924.70. In intra-day trade, the barometer zoomed 936.8 points or 3.90% to 24,944.80.

Sensex and Nifty logged their biggest single-day gains in absolute terms on across the board buying led by IT, metal, realty and tech shares. Sensex had previously posted its biggest single-day gain of 2,507.45 points and Nifty by 733.20 points on June 3, 2024.

Stock markets welcomed the understanding reached between India and Pakistan on Saturday (May 10, 2025) to stop all firings and military actions on land, air and sea.

India launched ‘Operation Sindoor’ on early May 7 to destroy nine terror infrastructures in Pakistan and Pakistan-Occupied-Kashmir in retaliation to the Pahalgam terror attack.

“Confluence of positive geopolitical and economic developments – the ceasefire between India and Pakistan, coupled with a breakthrough trade agreement between the U.S. and China – sparked the strongest daily market rally in recent times,” Vinod Nair, Head of Research, Geojit Investments Limited, said.