Stocks roar ahead as guns fall silent, trade war cools

A surge of optimism swept over the Indian markets as war clouds receded and the tariff clash eased, lifting stocks by the highest in more than four years.

- Dipti Sharma & Srushti Vaidya

MUMBAI:

Over the weekend, India and Pakistan agreed to end four days of conflict, while the US and China agreed to slash tariffs for 90 days. Stocks took off in response, turning investors wealthier by ₹16 trillion, the most since May 25, 2021.

The Nifty 50 shot up 3.8% to close at 24,924.70, while the S&P BSE Sensex rose 3.7% to 82,429.90, the biggest gain for both since February 1, 2021. The BSE's market capitalization touched ₹430 trillion, in a broad-based rally fuelled by both short-covering and delivery-based buying.

With the easing of tensions, focus now shifts to earnings, interest rates and consumption trends. While some see more stability and less volatility ahead, others expect emerging markets such as India's to outperform in the coming years.