Golden Day: Sensex zooms nearly 3,000 points, Nifty jumps 900 points in biggest-ever day

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Mumbai: On A Golden Day In percentage terms, both indices surged 3.4 percent, notching up their second-highest gains in four years. The only bigger jump in percentage terms took place on February 1, 2021, when both indices rose by more than 4.7 percent.
Benchmark indices saw a record rally on May 12, with the Sensex soared nearly 3,000 points and the Nifty 50 advanced by over 910 points, marking their biggest single-day gains in absolute terms ever. Easing border tensions between India and Pakistan significantly boosted investor sentiment, along with a significant progress in trade negotiations between US and China.

At close, the Sensex was up 2,975.43 points or 3.74 percent at 82,429.90, and the Nifty was up 916.70 points or 3.82 percent at 24,924.70. About About 3,236 shares advanced, which indicated that the market breadth was firmly in favour of the bulls, while 448 shares declined, and 90 shares remained unchanged.

In percentage terms, both indices surged nearly 4 percent, notching up their second-highest gains in four years. The only bigger jump in percentage terms took place on February 1, 2021, when both indices rose by more than 4.7 percent. The rally was broad-based, with all sectoral indices trading in positive territory.

The rally was broad-based, as all sectoral indices traded firmly in the green. Even the Nifty Pharma index, which had opened with losses of around 2 percent, managed to recover much of the ground as the session progressed, closing 0.15 percent higher. Although the segment initially reacted to comments by US President Donald Trump, who pledged to cut US drug prices by up to 80 percent, the Street largely shrugged off the concerns.

The Nifty Realty and Nifty IT indices were among the top gainers during this period, both surging six and seven percent, respectively. Broader market participation was also notable, with midcap and smallcap indices outperforming the benchmarks, each rising 4.1 percent.

The United States and China agreed to a 90-day pause in reciprocal tariffs and a 115-percentage point reduction in rates, a joint statement said. Additionally, reports of Russia and Ukraine initiating peace negotiations in Istanbul further helped ease global risk concerns.

Swapnil Aggarwal, Director at VSRK Capital said the current surge is being driven by easing geopolitical tensions and improving global trade prospects, and highlighted the India-Pakistan ceasefire, diplomatic thaw between the US and China, and reduced hostilities in Eastern Europe have together created a risk-on environment.