Sensex Opens 1,300 Points Up, Nifty Breaches 24,600 Mark - Know What Caused The Rally

Stock Market Today: Trading resumed on D-Street on May 12, 2025 for the first time after India and Pakistan agreed on a ceasefire. The 30-share Sensex opened 1,349.33 points or 1.69 per cent higher at 80,803.80, while the Nifty opened higher by 412 points or 1.71 per cent at 24,420.10.

The indices continued to surge in the early hours of the trading session as the Sensex gained over 2 per cent to trade at 81,435.86. On the other hand, the Nifty surged over 2 per cent to trade at 24,619.4 levels.

Nifty 50 Today: Top Movers

At the time of writing, the shares of Adani Enterprises, Jio Financial Services, Shriram Finance, Axis Bank and Adani Ports and Special Economic Zones emerged as top gainers among the Nifty 50 stocks as they traded higher by up to 6.35 per cent on the NSE.

Adani Enterprises share price surged nearly 7 per cent in the early trade to Rs 2,399 apiece on the NSE, making it the top gainer among the Nifty 50 constituents. Notably 48 of the 50 constituents of the benchmark index traded in the green and two traded in the red.

Broader Market Indices Rally

Key broader market indices like the Nifty SmallCap 100 and the Nifty MidCap 100 rebounded after closing in the red on May 9, 2025. The Nifty SmallCap 100 surged over 3 per cent to trade at 16,648.45 in the early trade.

The Nifty MidCap 100 also rallied more than 3 per cent to trade around the 54,897.65 level. The India VIX index also declined over 17 per cent at the time of writing, indicating reduced volatility. Among the sectoral pack, the Nifty Metal and the Nifty IT index gained the most in early trade, as they traded higher by 3.81 per cent and 3.71 per cent, respectively. Even as most major sectoral indices surged, the Nifty Pharma bucked the trend to trade lower by 1.12 per cent at the time of writing.

Reason Behind The Rally

The headline indices and the broader market indices rallied strongly in early trade on May 12, 2025 after two positive developments eased investor anxiety. Indices rallied as investor sentiment was bolstered by the de-escalation between India and Pakistan following a ceasefire agreement and a key US-China meeting.

While the declaration of a ceasefire is expected to have reduced investor concerns, other international tail-winds such as the US-China trade negotiations following US’ imposition of trade tariffs on China have also contributed to the rally.

On May 11, the US and China reached a trade deal in Geneva following two days of trade talks. The US Secretary of Treasury Scott Bessent called the trade talks ‘productive’ and added that details of the deal will be released on May 12.

“I’m happy to report that we made substantial progress between the United States and China in the very important trade talks. We will be giving details tomorrow, but I can tell you that the talks were productive,” Bessent said in a statement.