SENSEX, NIFTY50 skyrocket 3%; BSE m-cap surges by ₹13 lakh crore: Top factors fuelling market rally today

In the early trade, the S&P BSE SENSEX skyrocketed as much as 2,376.18 points, or 3%, to hit a high of 81,830.65 levels. Similarly, the NIFTY50 index of the National Stock Exchange (NSE) rallied as much as 729.8 points, or 3%, to touch the day's high of 24,737.80 levels.

At the time of writing this news, SENSEX was trading at 81,403.37 levels, up 1,948.90 points, or 2.45%, while the NSE's NIFTY50 index was ruling at 24,607.00, up 599 points, or 2.5%.

The market capitalisation of the BSE-listed firms rallied by nearly ₹13 lakh crore. Last seen, the m-cap stood at ₹429.27 lakh crore. It was ₹416.40 lakh crore on May 9, Friday.

India-Pakistan tensions ease

Investor sentiment got a major boost as India and Pakistan on Saturday, May 10, reached an understanding to stop all firings and military actions on land, air, and sea, with immediate effect.

In a media briefing close to midnight, India's Foreign Secretary Vikram Misri called upon Pakistan to take 'appropriate steps' to address the violations and deal with the situation with 'seriousness and responsibility'.

"Pakistan remains committed to faithful implementation of the ceasefire between Pakistan and India," the Foreign Office spokesperson in Islamabad said in a statement while responding to the media queries regarding the statement made by Misri.

"We believe that any issues in the smooth implementation of the ceasefire should be addressed through communication at appropriate levels. The troops on the ground should also exercise restraint," Misri added.

Healthy buying across the board

The market zoomed as healthy buying was witnessed across the board, but pharma stocks. IT, realty, and power stocks were leading the chart.

The BSE Information Technology index was trading at 36,492.69 levels, up 1,339 points, or +3.81%.

US-China reach agreement

The United States has reached a trade agreement with China after two days of high-level negotiations in Geneva, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced on Sunday.

“We made substantial progress between the United States and China in the very important trade talks,” said Bessent, thanking the Swiss government for hosting. “We will be giving details tomorrow, but I can tell you that the talks were productive.”

US President Donald Trump last month raised US tariffs on China to a combined 145%, and China retaliated by hitting American imports with a 125% levy. Tariffs that high essentially amount to the countries' boycotting each other's products, disrupting trade that last year topped $660 billion.

Even before the talks began, Trump suggested Friday that the US could lower its tariffs on China, saying in a Truth Social post that “80 per cent tariff seems right! Up to Scott.”

Persistent FII buying

Foreign investors continue to show confidence in the country's equity market, infusing ₹14,167 crore so far in May, largely driven by favourable global cues and robust domestic fundamentals.

Notably, this inflow has come despite the ongoing military tensions between India and Pakistan.

This positive momentum follows a net investment of ₹4,223 crore in April, marking the first inflow after three months, data with the depositories showed.

Before this, foreign portfolio investors (FPIs) had pulled out ₹3,973 crore in March, ₹34,574 crore in February, and a substantial ₹78,027 crore in January.

Trade deal with the US to increase

US President Donald Trump announced Sunday that the United States will substantially boost trade with India and Pakistan following their agreement to halt an escalation of military conflict.

“I am very proud of the strong and unwaveringly powerful leadership of India and Pakistan for having the strength, wisdom, and fortitude to fully know and understand that it was time to stop the current aggression that could have lead to to the death and destruction of so many, and so much,” Trump posted on Truth Social.

"While not even discussed, I am going to increase trade, substantially, with both of these great nations," Trump said.