Indian equity markets surged sharply on Monday as investors reacted positively to the ceasefire agreement between India and Pakistan, and encouraging developments in US-China trade relations. The BSE Sensex jumped nearly 2,200 points or 2.8% to close at 81,652.41, while the NSE Nifty50 rallied over 670 points to 24,680.20. The ceasefire agreement, covering land, air, and sea operations, and the resumption of US-China trade talks contributed to a broader risk-on sentiment, according to analysts.
Major sectors led the rally, with strong gains seen in technology, banking, metals, and consumer goods stocks. Tech firms like Infosys, HCL Tech, Tech Mahindra, and TCS rose by nearly 3–4%, while major banks including HDFC Bank, ICICI Bank, Bajaj Finance, and SBI posted gains of 2–3.5%. Other sectors such as FMCG, power, and auto stocks also performed well, adding to the overall buoyancy in the market.
Pharma stocks, however, bucked the broader trend and came under pressure following US President Donald Trump’s announcement of an executive order aimed at slashing drug prices by 30–80% in the US. Sun Pharma dropped nearly 4%, becoming the only loser among the 30 Sensex stocks. Other pharmaceutical companies such as Suven, Divi’s Labs, Glenmark, and Lupin also fell by more than 1% as the industry braced for the impact of potential pricing reforms in the US market.