“Great Progress Made”: Trump’s Trade Truce Sparks IT Frenzy, NIFTY IT Logs Biggest Jump in 5 Years

Tariff rollback between US and China, India-Pakistan ceasefire lift investor sentiment; NIFTY IT index jumps 6.5% mid-day, led by OFSS, Coforge, Infosys.

Mumbai, 12th May: “We want to see, for the good of both China and the US, an opening of China and American business. Great progress made.”

— Donald Trump, via social platform X

With these 15 words, the US President helped ignite one of the most dramatic sessions on Dalal Street in months. Indian equity markets soared on Monday, with the NIFTY IT index clocking its best single-day performance in five years, amid signs of cooling geopolitical tensions and revived global trade hopes.

The rally was driven by two surprise weekend developments—a ceasefire deal between India and Pakistan and a tariff rollback agreement between the US and China. These announcements sparked a sharp revival in risk, particularly in India’s export-heavy IT sector.

What’s Behind the Surge?

1. US-China Call a Truce on Tariffs

In a joint press conference in Geneva, US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent announced that the US and China would:

• US tariffs on Chinese goods cut from 145% to 30%

• China slashes retaliatory duties on US goods from 125% to 10%

The two sides agreed to a 90-day pause in trade hostilities, with Trump later hailing the breakthrough as “very good” and “constructive.”

2. India-Pakistan Ceasefire Announced

• Back home, India and Pakistan announced a full cessation of military actions across land, air, and sea starting immediately.

• India’s Foreign Secretary Vikram Misri, in a rare midnight address, called on Pakistan to uphold the deal with “seriousness and responsibility,” fueling optimism over regional peace.

IT Sector Steals the Spotlight

The export-heavy IT sector was the standout performer on Monday, riding the wave of global optimism. The NIFTY IT index’s 6.52% surge was the biggest in five years, per a CNBC-TV18 report.

Data as on 12^th May’ 2025

Bottomline
Two breakthroughs—one at the border, another in trade diplomacy—gave Indian markets a powerful boost.
With geopolitical tension easing and trade friction softening, the IT sector responded with its strongest rally in years. If this momentum sustains, it could mark a turning point for foreign investor confidence and global business flows- for now, markets are optimistic, but the next few weeks will tell if this rally has staying power.