In a dramatic surge that left investors celebrating, Indian stock markets witnessed their strongest single-day rally in four years, fueled by easing geopolitical tensions and positive global cues. The landmark understanding for a ceasefire between India and Pakistan was among the key catalysts that lifted market sentiment, adding over ₹16 lakh crore to investor wealth in just one trading session.
At the closing bell, the BSE Sensex skyrocketed by 2,975 points (3.74%) to settle at a record 82,429.90, while the NSE Nifty surged 917 points (3.82%) to finish at 24,924.70. This rally marked the second-largest percentage gain for both indices since February 1, 2021, when they spiked over 4.7%.
The day’s rally wasn’t driven by a single factor. Global markets responded positively to breakthroughs in US-China trade discussions and renewed peace efforts between Russia and Ukraine, both of which helped to ease geopolitical anxieties and bolstered risk appetite worldwide.
Back home, the rally was broad-based, with every sector closing in the green. Even the Nifty Pharma index, which had opened weak following US President Trump’s remarks on drastic drug price cuts, reversed losses to close slightly higher.
Standout performers included the Nifty IT and Realty indices, which jumped 6% and 7%, respectively. Meanwhile, midcap and smallcap segments outshone the broader market, each registering gains of more than 4%.
The total market capitalization on the BSE swelled from ₹416.52 lakh crore to ₹432.47 lakh crore—an increase of ₹16 lakh crore in a single session.
Market analysts attributed the rally to a combination of favorable global developments and technical momentum. “All major sectors contributed to the rally, with IT, realty, and metals leading the charge,” said Ajit Mishra, Senior VP of Research at Religare Broking. “The broader markets mirrored this momentum, and the technical breakout above previous highs suggests further upside potential.”
Investor confidence was also reinforced by a significant drop in the India VIX, the volatility index, signaling lower fear levels and improved stability in the near term.
From a technical standpoint, the Nifty’s breakout past the 24,857 mark confirms a continuation of its bullish trend. Analysts now see the index targeting 25,200 in the near term, with support expected in the 24,400–24,600 range.
With geopolitical tensions easing and global trade winds turning favorable, markets appear well-positioned to sustain their upward momentum—at least in the near term.
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