Indian stock markets witnessed a historic rally on Monday as benchmark indices Sensex and Nifty posted their biggest-ever single-day gains in absolute terms, surging nearly 4% on the back of easing geopolitical tensions and encouraging global trade developments.
The BSE Sensex zoomed 2,975.43 points, or 3.74%, to close at 82,429.90—its highest level in over seven months. During intra-day trade, the index rallied as much as 3,041.5 points, or 3.82%, hitting a high of 82,495.97.
Meanwhile, the NSE Nifty 50 surged 916.70 points, or 3.82%, to settle at 24,924.70. It touched an intra-day peak of 24,944.80, gaining 936.8 points or 3.90%. Monday's rally marked the best performance for the Indian bourses since April 9, 2020, and stood out as the ninth-largest single-day gain for Nifty in the past decade. Excluding eight major rallies during the 2020-2021 COVID-induced bull run, this was the second-best trading day for Nifty since April 2014.
Market sentiment was buoyed by news of a temporary truce in the U.S.-China trade conflict and a ceasefire agreement between India and Pakistan. The U.S. announced a tariff reduction on Chinese imports to 30%, while China responded by cutting reciprocal tariffs to 10%. The 90-day window for finalising a trade deal has raised hopes that the prolonged tariff war may be nearing resolution.
“While the India-Pakistan ceasefire helped, the primary trigger was the breakthrough in U.S.-China tariff negotiations. The 90-day truce lifted global market sentiment, signalling a possible end to escalating trade tensions,” said Amar Ambani, Executive Director, YES Securities.
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Sectorally, all indices closed in the green. The Nifty IT index led the rally, soaring 6.7%, followed by other high-performing sectors. Nifty Pharma was the least gainer, with a modest rise of 0.15%. Volatility was at its lowest since April 15, with the India VIX index falling 15% to 18.4, reflecting a more stable trading environment.
Technical experts suggest markets may face resistance around 25,200–25,300 for Nifty and 83,000–83,300 for Sensex. “Traders may consider booking profits if Nifty dips below 24,590 or Sensex below 81,150,” advised Shrikant Chouhan, Head of Equity Research at Kotak Securities.
With both domestic and global factors aligning positively, investor sentiment appears robust, signalling possible sustained momentum in the near term.
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