Indian Stock Market Sees Significant Gains as Tensions Ease
Market Performance Overview
On Thursday, May 15, 2025, India's stock market indices, the Sensex and Nifty50, concluded the trading session positively. The Sensex, which tracks the performance of the top 30 companies, jumped by 1,200.18 points, finishing at 82,530.74. Similarly, the Nifty50, representing the top 50 firms, rose by 395.20 points to close at 25,062.10.
Market Opening Trends
The Sensex opened at 81,354.43, reflecting an increase of 23.87 points, while the Nifty50 started at 24,694.45, up by 27.55 points.
Impact of Easing Tensions
The rise in the stock market is attributed to the de-escalation of tensions between India and Pakistan. Both nations announced a halt to military actions and firing along their border. This decision follows a significant rise in tensions after a tragic terrorist attack in Pahalgam that claimed 26 lives. Although the ceasefire is in effect, India continues to enforce stringent measures against Pakistan, including the suspension of the Indus Waters Treaty.
Market Outlook
Despite the positive market movement, analysts have observed a potential reversal in inflows from Foreign Portfolio Investors (FPIs), which had previously bolstered the market's upward trend. This shift is linked to changing global sentiments, particularly regarding the US-China trade agreement. Experts predict a possible 'Sell India, Buy China' trend in the near future, although some market consolidation may occur in the short term.
Expert Insights
Ajay Bagga, a banking and market expert, commented on the recent market performance, noting that the positive momentum from the US-China trade deal and lower-than-expected US CPI figures had led to a recovery in US markets, which influenced global market trends. However, he indicated that the current rally might be losing momentum as investors seek new catalysts, such as US tax cuts or debt ceiling legislation. He also mentioned that while Indian markets are expected to open positively, the primary support is coming from domestic retail investors rather than FPIs or domestic institutional investors (DIIs).