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Sensex soars up 3,000 points in 1st trading session after India-Pak ceasefire
The BSE Sensex and Nifty 50 gained about 3.8% each to close at 82,429.90 and 24,924.70 respectively.
India's benchmarks jumped nearly 4% to log their best session in almost a year on Monday after the country reached and held a ceasefire with Pakistan over the weekend, following the worst cross-border clashes in nearly three decades.
The BSE Sensex and Nifty 50 gained about 3.8% each to close at 82,429.90 and 24,924.70 respectively.
Pakistan's stock exchange halted trading on Monday for an hour, after the benchmark KSE-100 share jumped 8.84% in early trade. It was last up 9.4%.
The easing of hostilities allows focus to return to growth and trade in the world’s fifth largest economy, analysts said, adding that the conflict will not have a material impact on India's economy.
"Assuming the ceasefire is adhered to by both countries, we keep all our macro forecasts unchanged," Barclays said in a note.
V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said, "The ceasefire between India and Pakistan has paved the way for a sharp rally in the market. The prime mover of the rally will be the FII buying which has been sustained for 16 continuous days except last Friday when the conflict escalated."
India launched 'Operation Sindoor' on early May 7 to destroy nine terror infrastructures in Pakistan and Pakistan-Occupied-Kashmir in retaliation to the Pahalgam terror attack.
This was followed by both countries launching attack on each other's military infrastructure.
India and Pakistan on Saturday announced reaching an understanding to stop all firings and military actions on land, air and sea, with effect from 5 pm that day.
