The Indian stock market witnessed a massive rally, with the S&P BSE Sensex experiencing its best rally in a year, fueled by the ceasefire between India and Pakistan, which boosted investor sentiment. The Sensex surged by 2,975.43 points, closing at 82,429.90, while the NSE Nifty50 added 916.70 points, closing at 24,924.70.
Aditya Gaggar, Director of Progressive Shares, attributed the rally to easing cross-border tensions, which relieved investor concerns. The positive sentiment was further supported by progress in US-China tariff negotiations, which helped sustain the upward momentum throughout the day.
Infosys led the rally with a 7.91% jump, followed by HCLTech, which surged by 6.35%. Other strong performers included Tata Steel (+6.16%), Eternal Exports (+5.68%), and Tech Mahindra (+5.36%). However, IndusInd Bank and Sun Pharmaceuticals were the only two stocks that ended in the red, with declines of 3.57% and 3.36%, respectively.
Sector-wise, all sectoral indices closed in positive territory, with Nifty IT leading the way, rising 6.70%, followed by Nifty Metal (+5.86%) and Nifty Realty (+5.93%). Nifty Financial Services advanced by 4.21%, while Nifty Auto gained 3.41%. Nifty Private Bank (+3.24%), Nifty PSU Bank (+3.27%), and several other indices like Nifty Media, Nifty Consumer Durables, and Nifty Oil & Gas saw notable gains.
Vinod Nair, Head of Research at Geojit Investments, mentioned that while the momentum remains strong, the market may enter a phase of consolidation as investors await clearer signs of earnings growth. Meanwhile, mid and small-cap stocks are expected to maintain optimism.
The Nifty Smallcap100 and Nifty Midcap100 indices rose by 4.24% and 4.12%, respectively, and the India VIX dropped 14.97%, indicating a decrease in market fear.
Looking ahead, Gaggar cautioned that a near-term pullback is likely after such a sharp rally, presenting potential entry opportunities. The key support and resistance levels are now pegged at 24,770 and 25,180, respectively.
