New Delhi, May 13 -- A surge of optimism swept over the Indian markets as war clouds receded and the tariff clash eased, lifting stocks by the highest in more than four years.

Over the weekend, India and Pakistan agreed to end four days of conflict, while the US and China agreed to slash tariffs for 90 days. Stocks took off in response, turning investors wealthier by Rs.16 trillion, the most since 25 May, 2021.

The Nifty 50 shot up 3.8% to close at 24,924.70, while the S&P BSE Sensex rose 3.7% to 82,429.90, the biggest gain for both since 1 February, 2021. The BSE's market capitalization touched Rs.430 trillion, in a broad-based rally fuelled by both short-covering and delivery-based buying.

With the easing of tensions, focus now shift...