Sensex Up 2,200 Points As Markets Open For First Time Since Ceasefire

Stock Market Updates: Indian equities saw a strong rally as the markets opened for the first time this morning since India and Pakistan announced a ceasefire after weeks of heightened tensions in the aftermath of the Pahalgam terror attack. BSE Sensex, the 30-share index of the Bombay Stock Exchange, opened 1,500 points, or 2%, higher, indicating a strong demand despite underlying concerns in the thawed relations of the two nuclear-armed neighbours.

Nifty50, the benchmark of the National Stock Exchange (NSE) comprising the country's top 50 companies, went up 500 points in 15 minutes in the run-up to the 9:15 am opening bell.

Extending the gains by 10:05 am, Sensex had shot up 2,200 points while Nifty was 700 points higher than its last closing level.

India and Pakistan announced a ceasefire on Saturday evening, but incidents of violation by Pakistan were reported hours later. Sunday night remained largely peaceful, the Indian Army said this morning.

The markets showed extreme resilience and witnessed only limited losses during the conflict. India's clear superiority in warfare and its inherent resilience supported by global and domestic macros worked in favour of Indian equities, according to experts.

The gains also come after the US announced a deal with China to cut their trade deficit. "We made substantial progress between the US and China in the very important trade talks. I can tell you that the talks were productive," said Treasury Secretary Scott Bessent.

The announcement fuelled hopes on both sides that the US and China would de-escalate from the tariff standoff, adding gains to Asian markets and boosting the dollar.

US President Donald Trump had reserved the heftiest tariffs for Beijing when he unveiled the retaliatory tariffs last month, hiking the duty on Chinese products to 145 per cent. In response, China increased tariffs on the US to 125 percent.

The announcement of the trade deal brought relief to investors as the equity markets in Hong Kong, Shanghai, Sydney, Seoul, Taipei, and Wellington opened in the green this morning.

Only Tokyo was flat.

US futures have also surged ahead of the markets' opening this evening. The dollar saw a strong boost while oil prices increased over speculation that easing tensions would drive demand.