India’s benchmark Share Market Indices, Sensex and Nifty50, started the day’s trade in green on Monday, May 12, 2025. The Sensex (30 firms index) surged 1,896.41 points to 81,303.55 in Monday’s open trade. Meanwhile, Nifty50 (index with top 50 firms) also surged 582.35 point to 24,590.35 points.
The surge came after tensions between India and Pakistan ease. India and Pakistan on Saturday announced to stop all military actions and firing across their shared border immediately. The tensions between the 2 countries had sharply increased after a deadly terror attack in Pahalgam, which resulted in the deaths of 26 people. As the ceasefire between India and Pakistan begins, several tough measures taken by India to maintain pressure on Pakistan remain in place, including the suspension of the Indus Waters Treaty.
Experts noted that despite the hostile environment caused by the recent conflict, Indian markets demonstrated remarkable resilience. With the situation at the borders stabilizing, investors returned to equities, driving a strong rally supported by robust inflows.
Sectoral indices reflected widespread buying interest. Except for the pharma segment, all other sectors opened in the green. Nifty PSU Bank index jumped over 3 per cent, indicating strong interest in public sector lenders. Nifty Auto gained 2.25%, while Nifty IT rose 2.16%. The Nifty Realty led the gains, surging by more than 4% in early trade.
On the global front, cues remained favourable. The US and China described their trade talks in Geneva over the weekend as both productive and positive, further lifting market morale. Asian markets also opened higher on hopes of a US-China trade agreement.
What Else For Share Market?
Ajay Bagga Banking and Market Expert told ANI, “Indian futures are pointing to a sharp 2 per cent up-move, as all the losses due to the India-Pak kinetic conflict are made up on the back of the cessation of active hostilities in the region. Indian markets weathered the turbulence quite well and are set to recover smartly today.”
He further added, “Overall, tourism in North India is the biggest impacted sector, with mass cancellations in the peak summer holidays season impacting important tourist hubs. Defence stocks should see buying interest with fresh orders expected. Sentiment remains fragile geopolitically, but the resilience of the Indian markets point to a potential strong rally in the near future, with both FPIs and DIIs staying buyers.”
Meanwhile, gold prices dropped by over 2%, while oil prices and the US dollar moved higher. US futures indicated an expected gain of over 1% for Wall Street later in the day.
However, pharma shares may face headwinds as US President Donald Trump is expected to sign an executive order aimed at reducing the prices of prescription drugs and pharmaceuticals in the US.
Trump will also begin his Middle East tour on Tuesday, with expectations of key announcements related to energy, nuclear, defence procurement, and other strategic deals.
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