After the announcement of ceasefire between India and Pakistan, today on 12 May, the Sensex is trading at 81,700 level, up 2200 points (2.80%). This is the biggest rise of the year for the Sensex. Earlier, the Sensex had risen 1,577 points or 2.10% on 15 April.
29 out of 30 Sensex stocks are up. 17 stocks including Adani Ports, Bajaj Finance, Axis Bank are up up to 4.5%. While Sun Pharma alone has fallen by 5.5%.
Tech, banks, metals and consumer goods companies were big gainers on the Sensex on Monday morning. Infosys, HCL Tech, Tech Mahindra, TCS and Eternal soared nearly 3-4 per cent. HDFC Bank, ICICI Bank, Bajaj Finance and SBI were up 2.0-3.5 per cent. Shares of FMCG companies, power stocks and autos also gained over 1 per cent.
Pharma stocks, however, were under pressure amid President Donald Trump's indicating plans to slash drug prices in the US. Shares of Sun Pharma tumbled nearly 4 per cent. It was the only loser on the 30-share Sensex in the morning. Other pharma stocks like Suven, Division Labs, Glenmark, and Lupin among others were also down 1 per cent or more.
Nifty is also up by about 700 points
The Nifty is also up by about 700 points (2.86%). It is at the level of 24,700. On the other hand, NSE's Nifty Realty Index is up by 4.71%, Metal is up by 3.40%, Government Bank is up by 2.88%, Private Bank is up by 2.84%, IT is up by 2.39% and Auto is up by 2.33%.
GIFT Nifty, which is traded on NSE's International Exchange, is up by about 750 points (3.10%) at 24,800.
BSE's Small-Cap Index is up by 1,678 points (3.59%) and is trading at 48,420.
Mid-Cap Index is up by 1,175 points (2.79%) and is trading at 43,287.
Why stocks rose?
Among the main reasons for Sensex soaring is that after the ceasefire, tensions between India and Pakistan have reduced. Investors will keep an eye on all developments related to this matter.
Retail inflation data for the month of April will be released on May 13. Inflation is expected to come down below 3% in April.
Quarterly results of many companies including MRF, PNB Bank, Hindustan Petroleum, Adani Ports and Adani Enterprises were better than expected.
Last week, foreign institutional investors (FIIs) continued their buying spree and made purchases worth about Rs 5,087 crore in the segment.
The 11th round of talks on the free-trade agreement between India and the European Union (EU) is starting from today. It is expected that this deal will be successful.
Prakash Kumar Pandey