Sensex at 82,000, Nifty at 24,000: Why are India's stock market indices rising?

The Sensex shot up over 2500 points today.

The BSE was above 82,000, while the Nifty was over 24,000 points at 1 pm.

Other market indices were also up in early trade.

Axis Bank, Bajaj Finserv, Bajaj Finance, Adani Ports and Reliance were among the big stocks in the green.

The market capitalisation of all listed companies on BSE increased by Rs 11.1 lakh crore to Rs 427.49 lakh crore.

But what happened? Why is the Sensex rising?

Let’s take a closer look

What happened?

As per Business Standard, the Sensex and Nifty both had the best intraday session since June 5, 2024.

The Sensex and Nifty were both up by over three per cent at 1 pm.

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As per News18, in the morning all stocks on the Sensex except Sun Pharma were in the green.

Adani Ports & SEZ, Bajaj Finance, Axis Bank, Eternal and Power Grid led the pack.

Though pharma and healthcare remained down, all other sectors rose by over 4.7 per cent.

Reliance Power’s shares jumped by 12.5 per cent to an intraday high of  Rs 43.50 per share on the BSE.

As per Indian Express, market volatility indicator India VIX, dropped to 17.65 on Monday morning.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,798.71 crore on Friday, after remaining net buyers for many days, according to exchange data.

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Stock market benchmark indices tumbled over 1 per cent each on Friday after conflict between India and Pakistan intensified.

On Friday, the 30-share BSE benchmark gauge tanked 880.34 points or 1.10 per cent to settle at 79,454.47. The Nifty dropped 265.80 points or 1.10 per cent to 24,008.

Why is the Sensex rising?

There are two reasons how the market going up.

First, the ceasefire deal between India and Pakistan after days of conflict seems to be holding up

India launched ‘Operation Sindoor’ on May 7 to destroy nine terror infrastructures in Pakistan and Pakistan-Occupied-Kashmir in response for the Pahalgam terror attack in which 26 were killed.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., told News18, “A thaw in India-Pakistan relations is expected to trigger a sharp rebound in Nifty during early Monday trades."

But Tapse said “any renewed violations of the ceasefire by Pakistan could dampen bullish momentum."

Experts also pointed to India’s fundamentals being strong.

Devarsh Vakil, Head of Prime Research at HDFC Securities, said, “India’s markets and economy have shown exceptional resilience, repeatedly withstanding external disruptions."

This is driven by a fundamentally strong, inward-focused economy that consistently emerges stronger from crises."

“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,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

But they also offered a word of caution.

Trivesh D, COO of Tradejini, told India Today, “Whenever geopolitical tensions ease, especially between neighbours like India and Pakistan, markets tend to breathe a sigh of relief. That is exactly what we are seeing now—a positive knee-jerk reaction to the ceasefire news. Nifty50 opened with around a 400-point gap up at 24,420,” he said.

“But as investors, it is important not to get swayed by headlines alone. This type of news might provide short-term hope, but the long-term path still rests on Q4 earnings, economic data, US-China trade talks, and tariff-related developments. If you are already in, it could be best to hold and remain disciplined with your strategy. Don’t chase rallies," he added.

“If you have a systematic investment approach, continue with it. For fresh entries, wait and watch how the situation unfolds and whether this peace sustains. The market rewards patience and preparedness—not panic or excitement. Focus on fundamentals, not flashes of hope.”

Second, investors were also buoyed by the US and China announcing a 90-day pause on some tariffs.

Investors are hoping that the two countries will be able to reach a trade deal.

US Treasury Secretary Scott Bessent on Sunday claimed that has been “substantial progress” but details remain scarce.

With inputs from agencies