Sensex Surges 2,100 Points as Markets Rally After Ceasefire Reopening
Trading resumed for the first time since the recent India-Pakistan ceasefire agreement. Indian stock markets staged a powerful rally on Monday, rebounding sharply. The Sensex surged over 2,100 points in early trade, while the Nifty shot up 553.25 points to 24,561.25, reflecting renewed investor confidence.
Despite the heightened tensions last week, markets appeared largely unfazed, with investors quickly returning to risk assets as the situation at the border showed signs of stabilising.
“Futures had already indicated a 2% bounce as soon as news of the ceasefire came in,” said market analyst Ajay Bagga. “The markets absorbed the shock of the conflict surprisingly well, and today’s gains reflect a strong return of confidence.”
Gains were broad-based, with real estate, auto, and IT stocks leading the charge. Nifty Realty surged over 4% in early trade, while Nifty Auto rose 2.25% and Nifty IT gained 2.16%. The strong performance was also aided by supportive global cues.
Over the weekend, the US and China reported “productive and positive” trade discussions in Geneva, helping lift the mood across Asian markets. US futures pointed to a solid start on Wall Street, while gold prices dropped more than 2% as safe-haven demand eased. Oil prices and the US dollar edged higher.
Pharma Stocks Under Pressure Amid Trump’s Drug Price Order
While most sectors rode the wave of optimism, pharmaceutical stocks bucked the trend. The Nifty Pharma index slipped 1.3% after US President Donald Trump announced plans to sign an executive order capping prescription drug prices at levels paid by other wealthy countries—potentially slashing them by as much as 80%.
Sun Pharma was the biggest casualty, tumbling 5.4% to become the top loser on both the Nifty 50 and pharma index. Glenmark and Cipla also saw declines of 0.4% and 1.5% respectively. In total, eight of the 20 pharma stocks traded in the red.
The broader market mood, however, remained buoyant, with investors appearing optimistic that the worst of the geopolitical tension had passed—at least for now.
