- By Aditya Pratap Singh
- Mon, 12 May 2025 04:17 PM (IST)
- Source:JND
Stock Market Today: The domestic equity market witnessed a historic rally today, i.e. May 12, 2025, fueled by positive sentiment post the India-Pakistan ceasefire announcement. The BSE Sensex skyrocketed by 2,975.43 points, or 3.74%, to close at 82,429.90. During intraday trade, the Bombay Stock Exchange's index briefly surged over 3,000 points. The NSE Nifty also registered a sharp rally, climbing 916.70 points or 3.82% to settle at 24,924.70.
Today's rally marks the biggest single-day jump in the domestic markets since February 2021, when both indices had surged nearly 4.7%.
Twenty-eight of the thirty stocks in the Sensex pack finished the day higher. The rally was led by tech stocks, with Infosys rising more than 7% and Tata Steel, HCLTech, Zomato, TCS, and Tech Mahindra all gaining more than 5%. However, with losses of about 3% apiece, Sun Pharma and IndusInd Bank were the only underperforming banks.
As 504 stocks hit the upper circuit and 185 stocks hit the lower circuit in the overall market action, investor enthusiasm was clear. 3,542 of the 4,254 stocks that were traded ended up making money.
Market-Cap Soars High
All BSE-listed companies' total market capitalisation increased by Rs 1,6,06,576 lakh crore to Rs 4,32,47,426.73 lakh crore today. The amount was Rs 4,16,40,8 as of Friday's closing. The wider markets were ecstatic as well. The BSE Smallcap Index increased 4.18% to close at 48,693.75, while the BSE Midcap Index surged 3.85% to close at 43,731.60.
Key Reasons Behind the Stock Market's Massive Rally Today
Ease In India-Pakistan Geo-Political Tension
The ceasefire announcement by the two neighbouring countries (India and Pakistan) gave a significant boost to the Indian stock market. India and Pakistan have been engaged in massive crossfire following India's launch of "Operation Sindoor" to destroy terror outfits in Pakistan in retaliation post the terror attack on tourists in Pahalgam.
US-China Trade Deal
The relaxation of trade disputes between the United States and China was another boost. For a first 90 days, they have agreed to remove their previously announced reciprocal tariffs and counter-tariffs. In the interim, China will impose 10% tariffs on US goods, and the US will impose roughly 30% tax on Chinese goods.
Massive Upstick In Sectoral Indices
The Nifty Pharma index, which saw significant losses during the first trading session, increased today along with all other major sectoral indices. With a 6.7% increase, Nifty IT was the best-performing index, as concerns about a slowdown in the largest economy in the world were allayed by the US-China trade agreement. Gains were also reported by Nifty Realty, Nifty Metals, and Nifty Auto. The news that Donald Trump is likely to lower drug prices in the US hurt shares of pharmaceutical exporters, which is why Nifty Pharma only gained 0.15% today.