3 Key Reasons Behind Nifty50 And Sensex Rallying Today

Introduction

India’s stock market had an astonishing surge today on 12 May 2025, as BSE Sensex skyrocketed by more than 2,200 points while Nifty50 broke out past the 24,600 mark. This spike is being celebrated all over Dalal Street, fuelled by a combination of favourable geopolitical, global and domestic factors.

The most important factor is the unexpected ceasefire between India and Pakistan, which relieved tension in the region and set off buying for nearly all sectors. In this blog, let us discuss in detail the top three factors that led to the surge of the Sensex and Nifty today.

 

3 Key Reasons Behind Nifty50 And Sensex Rallying

Among several factors for today’s share market boom, the following three are the main reasons behind this surge:-

 

1. India-Pakistan Ceasefire 

The weekend news of a ceasefire between India and Pakistan was welcome to investors worldwide as well as domestic players. Both Nations express hope following negotiations in Switzerland. The negotiations were "highly productive," according to US Treasury Secretary Scott Bessent, and they reached an "important consensus," according to China's Vice Premier He Lifeng. 

The action is being viewed as a step toward peace in the region that has been a major risk driver for Indian markets historically. Consequently, market players welcomed it with opening buy orders, causing broad-based purchasing in large-cap as well as mid-cap stocks.

 

 

2. US-China Trade Developments Boost Global Market

Contributing to the positive momentum, reports of favorable developments in US-China trade talks gave global markets additional confidence. Asian and European markets also opened higher, and this worldwide optimism rubbed off on Indian equities. 

Lower trade tensions among big economies generally buoy sentiment in emerging markets such as India. The news that the US-China trade discussions were moving forward caused the US market futures to soar more than 400 points.

 

3. Robust Domestic Flows and Retail Investor Confidence

Domestic Institutional Investors (DIIs) and retail investors were instrumental in driving today's rally. SIP inflows reached an all-time high of Rs. 26,632 Cr in April, as per AMFI data, which indicates increasing faith in equity markets.

 

Stocks Rallying Today-

 

Zen Technologies Share

The company is involved in the making of defense and security forces' counter-drone and combat training solutions. Zen Technologies share price is Rs. 1477 with a 5% upper circuit.

 

Yes Bank Share

Yes Bank share price today is Rs. 20.5 with a 2.35% high.

 

SBI Share Price 

SBI share price today is Rs. 802 with a 2.93% high.

 

For regular updates on the share market, visit our Stock Market Updates page.

 

 

Pakistan Stock Market Index

The Karachi Stock Exchange (KSE 100) benchmark index of the Pakistan stock market rose more than 9% today following a ceasefire with India that improved investor sentiment, forcing a one-hour halt in trading.

 

India VIX

Indian Volatility Index (India VIX today) fell by around 16-17% today, which is a signal of a positive market bull run.

 

Nifty 50 Chart

The Nifty50 chart for today for tracking its movement is attached below:-

 

 

Conclusion

Sensex and Nifty50 jumped today on account of the India-Pakistan ceasefire, robust US-China trade cues, and increasing domestic investor optimism. Lower India VIX indicates decreased market fear, favoring a bullish trend.

Share prices of SBI, Yes Bank, and Zen Technologies registered robust gains.

With SIP inflows touching record levels, Indian markets could likely see more upside.

 

DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. Some data is valid as of writing the content, and might get changed. The content is purely for educational and information purposes only. Always discuss with your SEBI-registered financial advisor for investment-related decisions.