Dalal Street is in absolute party mode. The Sensex has scaled over 2,200 points in early trade and the Nifty is rallying well past 24,700 led by Adani Group stocks, financials and Trent. The small and midcaps are also seeing a smart rally. Most sectoral indices are in the green but the Nifty Pharma is the only one deep in red.
Three reasons why the share market is surging today
The market is upbeat as a result of host of reasons-
India-Pakistan ceasefire
After 4 days of escalation of conflict, India and Pakistan agreed on a ceasefire over the weekend. The markets have given a thumbs up to the easing off tension between the two nuclear-enabled countries. All eyes are now on the India-Pakistan DGMo level talks today. Meanwhile as Financial Express.com already reported, the Director General Military Operations (DGMO) Lt Gen Rajiv Ghai has said that India conveyed its“firm warning to respond “fiercely and punitively” in case of further violation of ceasefire.
US China trade talks
The other big trigger is the US-China trade talks. The United States. and China ended trade talks on a positive note as per latest available reports. The US. officials addressed it as a “deal” to reduce the U.S. trade deficit, while Chinese officials said both had reached “important consensus”. However, there is no official release listing out the details yet. The latest report on Reuters indicate that the Chinese Vice Premier He Lifeng mentioned that a joint statement would be issued later today.
Possibility of Ukraine-Russia peace talks on May 15
Ukrain’s President Volodymyr Zelenskiy said he would agree to meet Kremlin leader Vladimir Putin in Turkey on Thursday after U.S. President Donald Trump told him immediately to accept Putin’s proposal of direct talks. As per the Reuter’s report, the Ukrainian leader had responded guardedly earlier after the Russian President, in a night-time televised statement, proposed that Ukraine and Russia hold direct talks in Istanbul next Thursday, May 15.