
Markets Soar After Ceasefire
Markets soar as the Indian stock market rallied strongly on May 12, 2025, following a crucial ceasefire between India and Pakistan. Consequently, investor sentiment improved, leading to significant gains across major indices.
Specifically, the Nifty 50 surged to 24,700.05, while the BSE Sensex climbed to an impressive 81,689.46. As a result, both benchmarks successfully recovered recent losses. Moreover, small-cap stocks outperformed, registering a notable 3.5% rise, whereas mid-cap stocks gained 3.1%.
In addition, the market’s fear gauge, the volatility index (VIX), witnessed a sharp decline. This indicates easing investor anxiety and a growing appetite for risk. Furthermore, analysts believe that the geopolitical stability brought by the ceasefire has reignited optimism about India’s economic prospects.
Therefore, this rebound not only reflects market resilience but also emphasizes the direct impact of international relations on financial markets. Looking ahead, continued diplomatic efforts could further sustain this positive momentum.