Barometers trade with major gains; IT shares rally

The domestic equity benchmarks traded with robust gains in the mid- afternoon trade, as geopolitical tensions eased following a ceasefire between India and Pakistan after days of missile and drone attacks, while progress on the US-China trade deal further boosted sentiment. The Nifty traded above the 24,900 level. IT shares rallied after declining for the previous trading session.

At 14:30 IST, the barometer index, the S&P BSE Sensex, zoomed 2,859.87 points or 3.60% to 82,314.34. The Nifty 50 index soared 890.85 points or 3.71% to 24,904.85.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index advanced 3.70% and the S&P BSE Small-Cap index gained 3.71%.

The market breadth was strong. On the BSE, 3,493 shares rose and 555 shares fell. A total of 159 shares were unchanged.

IMD Monsoon Forecast:

The India Meteorological Department (IMD) has announced that the southwest monsoon is expected to hit Kerala on May 27, earlier than the usual June 1 onset. If it does, this would mark the earliest monsoon arrival since 2009. Keralas onset signals the official start of the monsoon season across India, which typically covers the country by July 8 and retreats between September 17 and October 15.

India and Pakistan Ceasefire:

Tensions between India and Pakistan took a much-needed breather over the weekend as both nations agreed to a ceasefire following days of escalating the worst the region has seen in nearly three decades. The truce came after a dramatic round of late-night diplomacy led by the United States.

"After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a FULL AND IMMEDIATE CEASEFIRE," President Donald Trump declared on Saturday.

The ceasefire, while fragile, appeared to be holding steady over the last 24 hours. However, both sides traded accusations of minor violations.

Economy:

India's forex reserves dropped $2.065 billion to $686.064 billion for the week ended May 2, the RBI said on Friday.

For the week ended May 2, foreign currency assets, a major component of the reserves, increased $514 million to $581.177 billion, the data released on Friday showed.

Gold reserves decreased $2.545 million to $81.82 billion during the week, the RBI said.

The special drawing rights were down $30 million to $18.558 billion, the apex bank said.

India's reserve position with the IMF was also down $3 million at $4.509 billion in the reporting week, the apex bank data showed.

Buzzing Index:

The Nifty IT index jumped 6.46% to 38,196.55. The index shed 0.34% in the previous trading session.

Oracle Financial Services Software (up 8.31%), Coforge (up 7.69%), Persistent Systems (up 7.6%), Infosys (up 7.44%) and LTIMindtree (up 7.43%), HCL Technologies (up 6.59%), Mphasis (up 6.53%), Wipro (up 6.26%), Tech Mahindra (up 5.05%) and Tata Consultancy Services (up 4.7%) added.

Numbers to Track:

MCX Gold futures for the 5 June 2025 settlement slipped 3.66% to Rs 92,990.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 1.11% to 101.45.

The United States 10-year bond yield added 1.39% to 4.434.

In the commodities market, Brent crude for July 2025 settlement added $1.45 cents or 2.27% to $64.91 a barrel.

Stocks in Spotlight:

Tata Consultancy Services jumped 4.70% after the company announced agreement with Oman-based Dhofar Insurance Company for transforming its core insurance platform.

Magellanic Cloud jumped 8.75% after the company said that its subsidiary Scandron has received an order for supply of drones.

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