Taking Stock: Best day in absolute terms as India-Pak ceasefire, US-China tariff cuts revive sentiment

Market Today

Leading stock market indices staged a record rally, clocking their best-day ever in absolute terms as well as their biggest gain since February 2021 in percentage terms, powered by an across-the-board risk-on trade fuelled by the truce between India and Pakistan, with the gains supported by the progress in US-China trade talks.

Benchmark indices snapped a two-day losing streak to record their best day in four years in percentage terms. At close, the Sensex was up 2,975.43 points or 3.74 percent at 82,429.90, and the Nifty 50 was up 916.70 points or 3.82 percent at 24,924.70. The BSE Midcap index rose 3.8 percent and smallcap index added 4 percent.

With today's gain, investors' wealth increased by more than Rs 16 lakh crore, and the market capitalization of BSE-listed companies jumped to Rs 432.55 lakh crore.

This is also the highest closing level of 2025, taking benchmark indices to a seven-month high.

The tariff reduction by US and China and forecast of early onset of monsoon in Kerala were both supportive cues, boosting investors sentiment.

All the sectoral indices ended in the green with realty, power, IT, energy up 4-6 percent, while auto, bank, capital goods, FMCG, oil & gas, telecom, power, media up 2-3.8 percent.

The biggest Nifty gainers included Infosys, Adani Enterprises, Shriram Finance, Trent, HCL Technologies, while losers were Sun Pharma and IndusInd Bank.

Yes Bank shares gain 2.4 percent after Sumitomo Mitsui Banking Corporation (SMBC) said it will acquire 20% stake in the bank from multiple stakeholders. Reliance Power shares zoomed 11 percent on turning profitable in Q4 and winning 350 MW solar & 175 MW/700 MWh energy storage project. Apollo Pipes shares jumped 3 percent on robust Q4 earnings and Birla Corporation shares rose 20 percent after Q4 profit jumps 32 percent.

Index	Prices	Change	Change%
Sensex	85,712.37	447.05	+0.52%
Nifty 50	26,186.45	152.70	+0.59%
Nifty Bank	59,777.20	488.50	+0.82%

Nifty 50 26,186.45 152.70 (0.59%)

Fri, Dec 05, 2025

• 1D
• 5D
• 1M
• 3M
• 6M
• 1Y
• 2Y

Biggest Gainer	Prices	Change	Change%
Shriram Finance	854.90	26.75	+3.23%

Biggest Loser	Prices	Change	Change%
Interglobe Avi	5,370.50	-66.00	-1.21%

Best Sector	Prices	Change	Change%
Nifty PSU Bank	8381.75	125.05	+1.51%

Worst Sector	Prices	Change	Change%
Nifty Pharma	22947.20	-11.80	-0.05%

Pharma stocks remained under pressure, opened lower after US President Trump announced plans to lower prescription drug prices, however, the Nifty Pharma index wiped off all the losses to end flat. Hotel, airline stocks zoomed after India and Pakistan on Saturday announced reaching an understanding to stop all firings and military actions on land, air and sea.

More than 100 stocks on the BSE tested 52-week high including, ICICI Bank, Aster DM Healthcare, APL Apollo, Bharti Hexacom, Redington, Anupam Rasayan, SRF, UPL, Ceat, Solar Industries, Navin Fluorine among others. Click to View More

Markets opened the week on a strong footing, rallying nearly 4%, driven by supportive global and domestic cues. The key trigger was the announcement of a ceasefire between India and Pakistan over the weekend, signaling easing geopolitical tensions. Adding to the positive sentiment were encouraging updates on the US-China trade deal, which further boosted investor confidence as the session progressed. Consequently, the Nifty index ended near its intraday high at 24,924. All major sectors contributed to the rally, with IT, realty, and metals leading the gains. The broader markets also mirrored this strength, each advancing close to 4%.

The easing of geopolitical concerns and progress on global trade talks brought significant relief to the markets, reflected in a sharp drop in the India VIX volatility index. Technically, the sharp rise in the Nifty marks a continuation of the uptrend following a three-week consolidation phase. Having crossed the previous swing high of around 24,857, the index is now poised to inch towards the 25,200 level, while the 24,400–24,600 zone is expected to offer strong support on any dip.

In light of the widespread buying momentum, a “buy on dips” strategy remains prudent. Investors should focus on selecting stocks based on the relative strength of specific sectors and prevailing market themes.

The market witnessed a strong bullish session as easing cross-border tensions brought relief to investors, leading to a robust start with the Index opening over 400 points higher. The positive sentiment was further fueled by encouraging developments in US-China tariff negotiations, which sustained the upward momentum throughout the day. As a result, the Index closed at its highest point at 24,924.70, registering notable gains of 916.70 points.

All the sectors ended in green, with IT, Realty, and Metal emerging as the top performers. Mid and Smallcaps soared over 4% and outshone the Frontline Index.

With a strong bullish candle, the Index has surpassed multiple resistance levels. However, given the sharp rally, a near-term pullback is anticipated, which could present more favorable entry opportunities. The key resistance and support levels are now seen at 25,180 and 24,770, respectively.

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