Indian equity markets surged this morning as investors responded positively to the ceasefire agreement between India and Pakistan after weeks of military escalation following the Pahalgam terror attack. The BSE Sensex opened 1,500 points—or 2%—higher, while the NSE Nifty50 shot up 500 points within the first 15 minutes of trade.

By 10:05 am, the Sensex had climbed over 2,200 points and Nifty gained nearly 700 points, signaling investor confidence despite geopolitical uncertainty. Market participants cited India’s military advantage, the limited duration of the conflict, and strong macroeconomic fundamentals as key reasons for the rally.

"The markets held steady through the worst and are now responding with optimism. India’s strategic deterrence and the swift global diplomatic response helped calm nerves," said Arvind Mehta, Chief Economist at Sterling Investments.

The rally also found support from international developments. The United States and China announced significant progress in their trade negotiations, easing tensions between the world’s two largest economies. “Talks were productive, and we’re closer to balancing trade concerns,” US Treasury Secretary Scott Bessent said.

This news triggered a broad-based rally across Asian markets, with Hong Kong, Shanghai, Sydney, Seoul, Taipei, and Wellington all opening in the green. Only Tokyo remained flat amid domestic concerns. US futures rose sharply in pre-market trade, suggesting a strong Wall Street open. The dollar strengthened, while oil prices edged higher on expectations of renewed demand amid easing global tensions.

Indian equity markets surged this morning as investors responded positively to the ceasefire agreement between India and Pakistan after weeks of military escalation following the Pahalgam terror attack. The BSE Sensex opened 1,500 points—or 2%—higher, while the NSE Nifty50 shot up 500 points within the first 15 minutes of trade.

By 10:05 am, the Sensex had climbed over 2,200 points and Nifty gained nearly 700 points, signaling investor confidence despite geopolitical uncertainty. Market participants cited India’s military advantage, the limited duration of the conflict, and strong macroeconomic fundamentals as key reasons for the rally.

"The markets held steady through the worst and are now responding with optimism. India’s strategic deterrence and the swift global diplomatic response helped calm nerves," said Arvind Mehta, Chief Economist at Sterling Investments.

The rally also found support from international developments. The United States and China announced significant progress in their trade negotiations, easing tensions between the world’s two largest economies. “Talks were productive, and we’re closer to balancing trade concerns,” US Treasury Secretary Scott Bessent said.

This news triggered a broad-based rally across Asian markets, with Hong Kong, Shanghai, Sydney, Seoul, Taipei, and Wellington all opening in the green. Only Tokyo remained flat amid domestic concerns. US futures rose sharply in pre-market trade, suggesting a strong Wall Street open. The dollar strengthened, while oil prices edged higher on expectations of renewed demand amid easing global tensions.