Relief Rallies: GIFT Nifty Soars 500 Points on India-Pakistan Truce

India-Pakistan Ceasefire Fuels Market Optimism

India’s GIFT Nifty, a leading indicator of how the stock market will open, is signaling a strong start for both the Sensex and Nifty 50 indices.

The implied open points to a 500-point jump, fueled by a significant development: India and Pakistan have agreed to a ceasefire after a week of heightened military tensions. This news has brought much-needed relief to investors who were closely watching the escalating situation.

Resilient Markets Amidst Tensions

Despite the border tensions, the Indian stock market has shown resilience last week. The Nifty 50 index only dipped by 1.5%, managing to hold above the crucial 24,000 level. While mid-cap and small-cap indices saw more volatile swings, they largely recovered their losses.

Global Factors Boosting Sentiment

Adding to the positive sentiment, the US and China reported progress in their trade talks, leading to a 450-point surge in Dow futures. There are also encouraging signs from Russia and Ukraine, as discussions for a peaceful resolution head to the negotiating table.

Long-Term Outlook Remains Positive

Ashwini Agarwal, founder and partner at Demeter Advisors, believes investors should maintain a long-term perspective. ‘This is a fog of war, and we don’t know the exact outcome or duration,’ he says. ‘However, history suggests that investors shouldn’t panic and focus on the bigger picture, which remains positive for Indian equities.’

Expected Nifty Opening

Based on the current implied open, the Nifty is expected to open around 24,600.