The Indian equities market is seeing a major surge on Monday, with Nifty 50 up 2.9% and Sensex up 2.8% at the time of writing around 11 a.m.
The markets seem to rejoice the ceasing of hostilities with Pakistan after an informal ‘understanding’ was reached between the Director General of Military Operations (DGMOs) of the two countries on Saturday to “to stop all firing and military action on land, air and sea” the same day.
The India Pakistan Conflict: Pakistan violated the ceasefire hours after the understanding was reached, Indian authorities said.
There were stray reports of drone incursions on Sunday night as well, including information from Barmer district magistrate and Police.
Residents across Jammu & Kashmir have been widely reporting calm, suggesting that ceasefire understanding by-and-large seem to be holding.
The Indian Army Director General of Military Operations (DGMO) Rajiv Ghai is set to meet his Pakistani counterpart on Monday afternoon.
A joint presser has been scheduled by the DGMOs of Indian Army, Air Force and Navy at 2:30 p.m. IST following the meeting with Pakistan.
The presser is expected to give the next set of cues for the markets.
Looking Beyond The Conflict: The markets have kept relative calm amid the conflict with Pakistan that began with Indian air strikes deep into Pakistan on the May 6-May 7 night following terrorist attack in Pahalgam.
Key factors giving support have been a string of stellar earnings reported by Indian companies and a historic free-trade deal signed with the United Kingdom on May 6.
India is also set to resume talks for a free trade agreement with the European Union on Monday.
Defense Stocks Mute: Defense stocks that were roaring at the height of conflict on Friday have calmed down.
Data Patterns Ltd. (NSE: DATAPTTNS) is up 3.6% in line with the wider markets. Others are underperforming, with Hindustan Aeronautics Ltd. (NSE: HAL) down 1.4% and Solar Industries (NSE: SOLARINDS) down. 2.2%.
The manufacturers involved in the Akash weapon system, including the Air Defense Missile System, said to be deployed against Pakistan’s attacks, are also seeing their stocks trade mute with Bharat Electronics Ltd. (NSE: BEL) up 0.6% and Bharat Dynamics Ltd. (NSE: BDL) up 1.37%.
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