Mumbai: The Indian stock markets had a huge rally on Monday, May 6, with both Sensex and Nifty rising nearly 4 per cent, their best performance in four years. This big jump added Rs 16 lakh crore to investors’ total wealth in just one day.
Ceasefire and Global Peace Talks Boost Market
The rally was mainly driven by some very positive news from India and around the world. A ceasefire understanding between India and Pakistan gave a strong boost to investor confidence. In addition, progress in US-China trade talks and reports of peace discussions between Russia and Ukraine helped reduce global tensions.
These positive signals made investors feel more confident and willing to take risks, leading to a big jump in stock prices.
Sensex and Nifty Soar
At the end of the trading day:
Sensex rose by 2,975.43 points (3.74 per cent) to close at 82,429.90
Nifty jumped by 916.70 points (3.82 per cent) to end at 24,924.70
This was the second-largest one-day percentage gain for both indices in four years. The last time the market had a bigger gain was on February 1, 2021, when Sensex and Nifty jumped over 4.7 per cent.
All Sectors in Green
All sectors ended in the green, showing a broad market recovery.
Nifty IT rose by 6 per cent
Nifty Realty jumped 7 per cent
Midcap and Smallcap stocks outperformed, rising by 4.1 per cent each
Even the Nifty Pharma index, which started the day lower due to comments by former US President Donald Trump about cutting drug prices, ended 0.15 per cent higher, as investors ignored the early concerns.
Investor Wealth Rises
The total market value (market cap) of companies on the BSE went from Rs 416.52 lakh crore to Rs 432.47 lakh crore—a jump of Rs 16 lakh crore in one day.
Experts See More Upside
According to market expert Ajit Mishra of Religare Broking, global and domestic support helped the rally. He said the markets are in an uptrend and, now that the Nifty has crossed 24,857, it could move towards 25,200. Any dips may find support between 24,400–24,600.
Also, the India VIX index, which shows market fear, dropped sharply—signaling more comfort among investors.
(With Inputs From IANS)
