Nifty Hits 4-Month High, Logs Best Gains Since June 5, 2024; Bank Nifty Surges Past 55,000
Interestingly, the India VIX index cooled off significantly, dropping by 18 per cent to fall below the 18 mark.
Market Update at 9:50 AM: After opening higher, Indian equity benchmark indices extended their gains, with the Nifty trading above the 24,600 mark, hitting a fresh high of over four months and logging its best single-day move since June 5, 2024, while the Nifty Bank surged past the 55,000 mark, up by 2.70 per cent.
Interestingly, the India VIX index cooled off significantly, dropping by 18 per cent to fall below the 18 mark. The decline in the volatility gauge could be attributed reports said that US announcing ‘substantial progress’ in tariff talks with China, as well as India and Pakistan jointly announcing a ceasefire on Saturday evening. However, reports of violations emerged thereafter, though no further action has been reported since.
All sectoral indices were trading in the green, except for Nifty Pharma, which was down by 1.64 per cent. Nifty Realty and Nifty Energy were the Top Gainers, advancing 3.94 per cent and 3.3 per cent, respectively.
The broader market indices outperformed the frontline gauge, with the Nifty Midcap and Small-Cap rising by 2.77 per cent and 3.17 per cent, respectively. Given this outperformance, the advance-decline ratio was firmly in favour of advances.
Pre Market Update: Indian markets are expected to open on a strong note this Monday, May 12, with early indications from Gift Nifty suggesting a sharp gap-up of 453 points. This places Nifty Futures above the 24,500 mark, hinting at a potentially historic start to the week.
One of the major reasons behind this bullish sentiment is the positive outcome of trade talks between the United States and China. Both countries concluded their two-day discussions in Geneva on a constructive note. U.S. officials hinted at progress in narrowing the trade gap, while Chinese representatives confirmed that some important agreements had been reached. Investors are now awaiting the official details expected to be released later today, which is keeping global market sentiment upbeat.
On the geopolitical front, tensions between India and Pakistan eased over the weekend. Both nations agreed to a ceasefire on Saturday evening, which provided some relief to investors. However, there have been reports of minor ceasefire violations from Pakistan’s side, prompting India to respond firmly, urging adherence to the truce. Despite the tensions, the move towards peace is seen as a stabilising factor for the markets.
Adding to the optimism, the India Meteorological Department (IMD) has predicted an early onset of the southwest monsoon, expected to reach Kerala by May 27—several days ahead of the normal date of June 1. This development is seen as a positive signal for the agriculture sector and rural consumption, which are important drivers of the Indian economy.
Apart from macro cues, investors will closely track corporate earnings today. Key companies such as Tata Steel, SRF, UPL, PVR Inox, and Raymond are scheduled to announce their Q4FY25 results. These numbers will help shape sentiment across specific sectors and may add further momentum to the market if the results exceed expectations.
Disclaimer: The article is for informational purposes only and not investment advice.