India’s stock markets roared back to life on May 12 with their biggest single-day rally in four years, driven by a combination of geopolitical relief and positive cues from global trade talks. The benchmark Sensex closed 3.74% higher, up 2,975 points at 82,430, while the Nifty 50 jumped 3.82% to 24,924.70.
The gains were broad-based, reflecting widespread buying across sectors as investors responded to a ceasefire announcement between India and Pakistan and a breakthrough in the trade dispute between the US and China. The sharp move lifted not only frontline indices but also mid and small-cap stocks.
The rally was largely powered by news over the weekend that India and Pakistan had agreed to a ceasefire along the Line of Control, calming border tensions that had been escalating. Simultaneously, the US and China reportedly reached a deal to reduce reciprocal tariffs, easing fears of a prolonged trade war between the world’s two largest economies.
Market participants viewed these developments as a welcome breather. According to Ajit Mishra, SVP at Religare Broking, “The ceasefire and US-China deal acted as the key triggers. These eased concerns and brought global risk appetite back on track, which India benefitted from.”
He added that the rally signals a continuation of the market’s upward trend, especially as the Nifty 50 broke past its previous swing high of 24,857. “If the momentum holds, 25,200 could be the next target, with a support zone seen between 24,400 and 24,600,” he said.
The surge in market sentiment translated into a ₹16,06,576 crore boost in investor wealth. The total market capitalisation of BSE-listed companies shot up to ₹4,32,47,426.73 crore from ₹4,16,40,850.46 crore as of May 10.
The broader indices echoed the same bullishness. The BSE Midcap index closed 3.85% higher at 43,731.60, and the Smallcap index rallied 4.18% to 48,693.75.
Among the sectoral indices, Nifty IT was the top gainer, surging 6.7%, buoyed by hopes that a more stable US-China trade environment could support tech spending and exports. Realty, metal, and auto stocks also performed strongly, while pharma stayed in the green but underperformed slightly with just a 0.15% gain.
Pharma exporters were weighed down by concerns that the US may soon push for lower drug prices, following reports suggesting that the Trump administration might be mulling such a move.
Only two stocks in the Nifty 50 ended in the red. The rest surged, led by Adani Enterprises, which soared 7.7%, and Infosys, which was close behind at 7.69%. Shriram Finance, Trent and Wipro each gained between 6% and 7%. On the flip side, IndusInd Bank and Sun Pharma were the only laggards.
The rally wasn’t limited to the index heavyweights. Nine stocks surged 20% in a single day, including Birla Corporation, Man Industries, and IFGL Refractories. Meanwhile, 47 companies touched their 52-week highs — among them, ICICI Bank, Ceat, Force Motors, and UPL.
On the flip side, 24 stocks hit their 52-week lows, proving that not all boats rise with the tide. Companies like Gensol Engineering and Century Enka were among those facing the heat.
Stocks like Yes Bank (52.75 crore shares traded) and Vodafone Idea (41.42 crore) were among the most actively traded by volume. Reliance Power, Suzlon Energy, and GLT Infra also featured in the high-volume list.
A total of 322 stocks hit their upper circuit limit — meaning they touched the maximum daily allowed gain — including names like Zaggle Prepaid, Senco Gold, and 63 Moons Tech. On the flip side, 35 stocks hit their lower circuits, including JP Associates and Housing Development & Infrastructure.
Market breadth was firmly positive, with 2,614 stocks advancing versus just 329 declining on the NSE — an advance-decline ratio of nearly 4:1. In simpler terms, for every one stock that fell, four gained grounds.
(By arrangement with livemint.com)
