Indian Stock Markets Retreat After Historic Rally Amid Ceasefire Developments

Indian Markets Pull Back After Record Highs Amid Ceasefire News

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: May 13, 2025

Summary: Indian stock markets saw a dramatic drop as investor worries about the coming inflation and corporate earnings reports grew.

Indian financial markets slumped on Tuesday after a brief rally following an agreement between India and Pakistan to end hostilities. The Nifty50 sank below 24,700, while the BSE Sensex fell more than 700 points to below 81,700. As of 9:58 AM IST, the Sensex was down 724 points, or 0.88%, at 81,705.88, with the Nifty50 down 195 points, or 0.78%, at 24,729.80.

This drop comes after the Sensex saw an all-time high of 2,975 points the day before, its biggest one-day gain in points. Investor optimism following the truce between India and Pakistan, which lifted market capitalisation by Rs 16.2 lakh billion in a single day, fuelled the rise.

Market experts are considering the existing profit trends and investor worries ahead of the crucial inflation data release, including the US Core CPI and India's Consumer Price Index (CPI). Investors are also anticipating quarterly earnings reports from major firms like Tata Motors and Bharti Airtel to gain further insights into market conditions.

Even though the market lost ground today, experts believe the overall sentiment remains positive due to recent trade discussions, reduced geopolitical tensions, and signs of economic growth. Investors should keep learning and looking for future strategies despite the market's ups and downs.