Closing Bell: Nifty and Sensex Surge to Multi-Month Highs, Driven by Rally in IT Sector and Geopolitical Relief
Nifty recorded its best single-day performance since February 2021
Monday proved to be an exceptional day for Indian equity markets, as both Sensex and Nifty closed significantly higher, with gains of 3.74 per cent and 3.82 per cent, respectively, reaching multi-month highs. Notably, Nifty recorded its best single-day performance since February 2021, when it surged by 4.74 per cent. This sharp rally helped Nifty cross the 24,900 level for the first time since October 2024. Key contributors to the index’s gains included Infosys (+118.09 points), ICICI Bank (+112.10 points), and HDFC Bank (+80.08 points), while profit-taking was observed in Sun Pharma (-17.11 points) and IndusInd Bank (-5.23 points).
The Nifty Bank index mirrored the performance of Nifty and Sensex, rising by 3.34 per cent and adding 1,787.60 points on May 12, 2025. Meanwhile, India VIX experienced a sharp decline of 15 per cent, closing around 18.4. The market rally was driven by several factors, including a reduction in geopolitical tensions between India and Pakistan, as well as progress in U.S.-China trade talks. U.S. Treasury officials announced a 90-day reduction in tariffs between the two nations, providing a significant boost to investor sentiment, particularly for Indian IT companies.
Indian IT stocks, which had been facing concerns about a potential full-blown trade war and its impact on U.S. economic growth, saw a significant relief rally. This was reflected in the Nifty IT index, which surged by 6.7 per cent, marking its highest single-day gain since 2020. All sectoral indices ended the day in the green, with the broader market indices also outperforming. Both Nifty Midcap 100 and Small-Cap 100 indices rose by over 4 per cent, marking their best performance in recent years. This broad-based rally ensured that the market breadth remained firmly in favor of the bulls, with the Nifty Small-cap 100 index recording its best single-day performance since 2022.
Disclaimer: The article is for informational purposes only and not investment advice.