Markets Surge as India-Pakistan Agree to Ceasefire; GIFT Nifty Soars Above Nifty 50

Image Source: Moneycontrol

Key Highlights

GIFT Nifty futures surged to 24,538.5, marking a 2.2% premium over the Nifty 50’s last close of 24,008.0, as global investors reacted positively to the sudden announcement of an immediate ceasefire between India and Pakistan.

The truce, announced late Saturday, saw both countries’ Directors General of Military Operations agree to halt all firing and military action from 5 pm onwards. This move was quickly confirmed by statements from both governments and welcomed by the international community, which had been urging restraint amid fears of further escalation.

Despite initial reports of ceasefire violations and continued high alert along the border, the situation stabilized by Sunday, and the truce appeared to be holding. Both sides have agreed to continue talks, with the next round scheduled for May 12.

The market’s reaction was swift and optimistic. GIFT Nifty, an international futures contract based on the Nifty 50 and traded on the NSE International Exchange in GIFT City, Gandhinagar, jumped well ahead of the domestic Nifty 50 index. This reflects a surge in risk appetite and renewed confidence among global investors in the stability of the region.

The Nifty 50, India’s benchmark index, closed at 24,008.0, down 1.1% from the previous session, but the sharp rise in GIFT Nifty futures signals expectations of a market rebound when trading resumes.

The ceasefire comes against a backdrop of long-standing disputes, including the suspended Indus Water Treaty and ongoing tensions over Kashmir. While the agreement is seen as a face-saving measure for both sides, analysts caution that underlying issues remain unresolved and will require sustained diplomatic engagement.

Security measures remain heightened in key cities and airports, with authorities advising vigilance, but no major disruptions have been reported since the truce took effect.

The announcement has brought a palpable sense of relief to markets and citizens alike, with hopes that this ceasefire could pave the way for broader dialogue and de-escalation in South Asia.

Sources:
The Indian Express, India Today, CNN, Al Jazeera, BBC, TIME, Moneycontrol, Investing.com, NSE, GIFT Nifty official site