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Informist, Monday, May 12, 2025

By Akash Mandal

MUMBAI – Benchmark indices ended sharply higher Monday, buoyed by the news of the weekend ceasefire between India and Pakistan and the trade deal between China and the US. The benchmark indices gained nearly 4% each, ending at their highest levels in over six months. BSE Sensex ended at its highest level since Oct. 3, and the Nifty 50 closed at its highest level since Oct. 16. 

Positive events over the weekend, such as the ceasefire between India and Pakistan, the likelihood of a ceasefire between Ukraine and Russia, and the successful trade deal between the US and China, led to broad-based buying and investors adding long positions, analysts said. With heavyweights such as Infosys, HDFC Bank, and ICICI Bank soaring 4-8%, the Nifty 50 gained 916.70 points or 3.8% to close at 24924.70 points. Only two stocks ended lower in the 50-stock index--IndusInd Bank and Sun Pharmaceutical Industries. Of the 48 other stocks that rose, 12 gained over 5% each, with Infosys, Adani Enterprises, Shriram Finance, and HCL Technologies being the biggest gainers. 

The BSE Sensex, which had fallen nearly 1300 points in the previous couple of sessions, gained 2975.43 points Monday to end 3.7% higher at 82429.90 points. Broader market indices also gained sharply and ended around 4% higher each. The India VIX, which is the fear gauge of the Dalal Street, fell nearly 15% to 18.3925.

All sectoral indices ended higher, with Nifty IT, Nifty Realty, and Nifty Metal soaring 6-7% higher. Pharmaceutical shares fell initially after US President Donald Trump said he would sign an order later in the day to cut prices of pharmaceutical products in the US by 30-80%. However, the Nifty Pharma, which fell over 2% in early trade, recovered and ended 0.2% higher. Sun Pharmaceutical, which has one of the highest exposures to the US market in the industry, came off lows but ended over 3% lower. The stock had fallen as much as 7% early in the session.

Information technology companies surged after the US and China agreed on the trade deal, with the Nifty IT being the top gainer among sectoral indices. The US cut reciprocal tariffs on Chinese imports to 10% from 125%, but the 20% tariffs, announced to curb the entry of fentanyl drugs, will remain. China reduced its tariffs on US goods to 10% from 125%. The new tariffs will be applicable for only 90 days and take effect from Wednesday. 

The Nifty IT gained 7%, with nearly half the gains coming after the announcement of the trade deal during the trading session. Oracle Financial Services Software, Coforge, and Persistent Systems ended 8-9% higher.

Shares of airline companies Interglobe Aviation and SpiceJet ended around 7% higher each, after 32 airports were reopened after being shut Friday due to cross-border conflict between India and Pakistan. Other tourism-related stocks such as Easy Trip Planners, Chalet Hotels, Indian Hotels Co., and TBO TEK ended 3-9% higher.

Among other stocks, Cera Sanitaryware soared over 13% higher and was the top gainer in the Nifty 500 after its bottom line for the March quarter rose 14% and beat the Street's view. Reliance Power ended nearly 11% higher after the company posted a consolidated net profit in the March quarter against a net loss a year ago. The company also said on Monday that its subsidiary, Reliance NU Energies, won the largest allocation in SJVN's tariff-based competitive bidding process of 350 megawatt of solar generation capacity.

K.P.R. Mill fell 9.5% and was by far the worst hit in the Nifty 500 after its earnings for the March quarter fell short of expectations. Jyothy Labs closed over 4% lower after its bottom line for the quarter fell on year and missed the Street's view. Navin Fluorine International fell nearly 4% despite its earnings being broadly in line with expectations, with brokerages pointing to high valuations of the stock.

Media reports said Pakistan's benchmark KSE 100 index gained over 9% after the ceasefire between the two neighbours boosted investor mood. The index had fallen more than 9% in the last four sessions till Thursday after India had launched Operation Sindoor in retaliation for the Apr. 22 terror attacks at Pahalgam in Jammu and Kashmir. The index had gained nearly 4% on Friday.

* Of the Nifty 50 stocks, 48 rose and 2 fell

* Of the Sensex stocks, 28 rose and 2 fell

* On the NSE, 2,614 stocks rose, 329 fell, and 67 were unchanged

* On the BSE, 3,545 stocks rose, 576 fell, and 133 were unchanged

* Nifty IT: up 6.7%; Nifty Realty: up 5.9%; Nifty Pharma: up 0.2%

BSE                                               NSE

Sensex: 82429.90, up 2975.43 points or 3.7%       Nifty 50: 24924.70, up 916.70 points or 3.8%

End

Edited by Saji George Titus

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