New Delhi, May 12 -- Sensex and Nifty 50, the Indian stock market benchmark indices, jumped nearly 3% Monday on upbeat investor sentiment after the announcement of India-Pakistan ceasefire. The easing of geopolitical tensions between the two nuclear-armed neighbours, coupled with strong global market cues, supported broad-based gains in domestic equities.

India and Pakistan have reportedly reached a "bilateral understanding" to suspend all military actions on land and in air, a move that has temporarily soothed market nerves.

However, the outlook remains clouded by uncertainty, with reports of ceasefire violations by Pakistan surfacing just hours after the agreement took effect. Incidents included cross-border firing along the Line of C...