The 30-share BSE Sensex soared by 2,975.43 points, or 3.74%, while the 50-issue Nifty of NSE skyrocketed 916.70 points, or 3.82%. File
| Photo Credit: PTI

Benchmark indices Sensex and Nifty registered their biggest single-day gains in absolute terms on Monday (May 12, 2025), skyrocketing nearly 4%, as border tensions between India and Pakistan eased and the U.S. and China agreed to lower tariffs.

The 30-share BSE Sensex soared by 2,975.43 points, or 3.74%, to settle at a more than seven-month high of 82,429.90. During the day, it rallied 3,041.5 points, or 3.82%, to a high of 82,495.97.

The 50-share Nifty of NSE skyrocketed 916.70 points, or 3.82%, to close at 24,924.70. In intra-day trade, the barometer zoomed 936.8 points, or 3.90%, to 24,944.80.

Monday (May 12, 2025) was the best day for Indian bourses since April 9, 2020, when Nifty 50 increased almost 4%. The day was also the ninth best day in the past decade. Eight of Nifty’s top 10 highest daily returns since April 2014 were in 2020 and 2021, which was the beginning of the bull run during COVID-19, from which the market started correcting in the second half of 2024. Without including these eight instances, Monday was the second-best day for Nifty 50. 

90-day window

“Nifty jumped 900+ points, partly due to the India-Pakistan ceasefire, but mainly on the news that the U.S. and China have eased tariffs and talks progressed well. A 90-day window for a trade deal has lifted sentiment, with investors hoping the worst of the trade war is behind us,” said Amar Ambani, executive director, YES Securities.

The markets reacted positively after the U.S. decided to slash tariffs on Chinese imports to 30% and China’s announcement to cut reciprocal tariffs on U.S. imports to 10%. This temporary pause for 90 days was seen as a sign of both nations de-escalating from their tariff wars. The ceasefire between India and Pakistan cooling off tensions added to market optimism. 

Nifty IT index increased the most, changing 6.7% and Nifty Pharma index improved the least, going up by 0.15%.

All sectors gave positive returns to investors. Markets were the least volatile since April 15, 2025, as the Nifty VIX index was down 15% to 18.4 points on Monday (May 12, 2025).

The current trend shows positive sentiments in the markets. “On the higher side, 25,200–25,300/83,000-83,300 would be the key resistance areas, while below 24,590/81,150 traders may prefer to exit their long positions,” said Shrikant Chouhan, Head – Equity Research at Kotak Securities.