Nifty, Sensex jumped more than 2% in opening as India-Pakistan tensions ease - World News Network

Mumbai (Maharashtra) [India], May 12 (ANI): Indian stock markets witnessed a sharp rally on Monday morning as investor sentiment turned positive following easing tensions between India and Pakistan. Both countries on Saturday reached an understanding on cessation of hostilities, leading to a boost in market confidence.
The benchmark Nifty 50 index opened at 24,420.10, registering a gain of 412.10 points or a 1.72 per cent surge. The BSE Sensex also reflected the bullish trend, rising by around 1300 points to open at 80,754.37, a gain of 1.64 per cent.
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.
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”.
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 per cent, while Nifty IT rose 2.16 per cent. Nifty Realty led the gains, surging by more than 4 per cent in early trade.
On the global front, cues remained favorable. 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.
Meanwhile, gold prices dropped by over 2 per cent, while oil prices and the US dollar moved higher. US futures indicated an expected gain of over 1 per cent 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, defense procurement, and other strategic deals. (ANI)

Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News