Sensex zooms 2,591 pts, Nifty above 24,800 on India-Pak ceasefire; VIX tanks 14.63%

The headline equity indices traded with strong gains in the afternoon trade, as geopolitical tensions eased following a ceasefire between India and Pakistan after days of missile and drone attacks, while progress on the US-China trade deal further boosted sentiment. Barring the Pharma index, all the other sectoral indices on the NSE were traded in green. The Nifty climbed above the 23,800 level.

At 13:28 IST, the barometer index, the S&P BSE Sensex, zoomed 2,590.57 points or 3.26% to 82,045.04. The Nifty 50 index soared 810.40 points or 3.38% to 24,818.40.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index advanced 3.36% and the S&P BSE Small-Cap index gained 3.99%.

The market breadth was strong. On the BSE, 3,477 shares rose and 524 shares fell. A total of 155 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tumbled 14.63% to 18.47.

Gainers & Losers:

Adani Enterprises (up 6.87%), Shriram Finance (up 6.68%), Infosys (up 6.25%), HCL Technologies (up 6.12%) and Wipro (up 5.71%) were the major Nifty50 gainers.

Sun Pharmaceutical Industries (down 3.08%) and Indusind Bank (down 2.85%) were the major Nifty50 Losers.

IMD Monsoon Forecast:

The India Meteorological Department (IMD) has announced that the southwest monsoon is expected to hit Kerala on May 27, earlier than the usual June 1 onset. If it does, this would mark the earliest monsoon arrival since 2009. Kerala's onset signals the official start of the monsoon season across India, which typically covers the country by July 8 and retreats between September 17 and October 15.

India and Pakistan Ceasefire:

Tensions between India and Pakistan took a much-needed breather over the weekend as both nations agreed to a ceasefire following days of escalating the worst the region has seen in nearly three decades. The truce came after a dramatic round of late-night diplomacy led by the United States.

After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a FULL AND IMMEDIATE CEASEFIRE, President Donald Trump declared on Saturday.

The ceasefire, while fragile, appeared to be holding steady over the last 24 hours. However, both sides traded accusations of minor violations.

Economy:

India's forex reserves dropped $2.065 billion to $686.064 billion for the week ended May 2, the RBI said on Friday.

For the week ended May 2, foreign currency assets, a major component of the reserves, increased $514 million to $581.177 billion, the data released on Friday showed.

Gold reserves decreased $2.545 million to $81.82 billion during the week, the RBI said.

The special drawing rights were down $30 million to $18.558 billion, the apex bank said.

India's reserve position with the IMF was also down $3 million at $4.509 billion in the reporting week, the apex bank data showed.

Stocks in Spotlight:

Dr. Reddy's Laboratories jumped 3.42% after the company reported a consolidated net profit of Rs 1,594 crore for the quarter ended March 2025 (Q4FY25), marking a 22% year-on-year increase from Rs 1,307 crore in the same period last year. Revenue from operations rose 20% year-on-year to Rs 8,506 crore, compared to Rs 7,083 crore in Q4FY24.

Atul Auto jumped 6.02% after the company's consolidated net profit surged 34.14% to Rs 7.15 crore in Q4 FY25 as against Rs 5.33 crore posted in Q4 FY24. Revenue from operations grew by 31.74% year-on-year (YoY) to Rs 210.98 crore in the quarter ended 31 March 2025.

Navin Fluorine International fell 2%. The company's consolidated net profit jumped 34.95% to Rs 94.98 crore in Q4 FY25, compared with Rs 70.38 crore in Q4 FY24. Revenue from operations rallied 16.44% year on year to Rs 700.94 crore in Q4 FY25, compared with Rs 601.95 crore in Q4 FY24.

K.P.R. Mill tumbled 7.97% after the company's consolidated net profit fell 4.24% to Rs 204.55 crore in Q4 FY25 as compared with Rs 213.61 crore in Q4 FY24. Revenue from operations increased 4.61% year on year (YoY) to Rs 1,700.95 crore during the quarter ended 31st March 2025.

Eveready Industries India added 3.31% after the company's consolidated net profit jumped 29.4% to Rs 10.42 crore on a 6.5% increase in revenue from operations to Rs 299.04 crore in Q4 FY25 over Q4 FY24.

Triveni Turbine surged 9.57% after the company's consolidated net profit jumped 24.14% to Rs 94.60 crore on 17.44% rise in revenue from operations to Rs 538 crore in Q4 FY25 over Q4 FY24.

Aarti Pharmalabs rose 1.33% after the company reported a 35.38% increase in consolidated net profit to Rs 88.34 crore in Q4 FY25 as against Rs 65.25 crore posted in Q4 FY24. Revenue from operations jumped 11.46% YoY to Rs 563.78 crore in the quarter ended 31 March 2025.

Adani Power zoomed 6.17% after the firm said it has secured a contract to supply 1,500 MW of thermal power to Uttar Pradesh at a levelized tariff of Rs 5.383 per unit, emerging as the lowest bidder in a competitive tender process.

Global Markets:

The US Dow Jones index futures were currently up by 876 points, signaling a strong opening for US stocks today.

European market opened higher on Monday while Asian stocks advanced after China and the U.S. announced a trade deal, including a 90-day pause on tariffs and a drop in reciprocal tariffs by 115 percentage points.

Both Washington and Beijing struck a hopeful tone. U.S. officials hinted at a potential deal to narrow the trade deficit, while Chinese leaders said the two sides had reached an important consensus'diplomatic speak for 'things went better than expected.'

U.S. Treasury Secretary Scott Bessent called the discussions a great deal of productivity, and Chinese Vice Premier He Lifeng added that a joint statement'one packed with good news for the world'was slated for release on Monday.

This diplomatic thaw follows a red-ink Friday on Wall Street, where the Dow shed 0.29%, the S&P 500 dipped 0.07%, and the Nasdaq barely moved, closing flat at 17,928.92.

Back in D.C., President Trump made headlines of his own. On Sunday, he announced plans to sign what he described as 'one of the most consequential executive orders in our country's history.' The executive order, expected at 9:00 a.m. Monday, aims to slash prescription drug prices by as much as 80%. Trump added that pharma prices could 'rise throughout the world' as part of his plan to level the playing field for American consumers.

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