Indian benchmark indices closed higher on May 25, with the Sensex advancing 1,073.61 points or 1.42% to end at 76,488.96, while the Nifty 50 gained 312.40 points or 1.32% to close at 24,031.70. According to latest reports, the Sensex rallied as much as 1.52% to hit an intraday high of 76,559.07, while the Nifty 50 touched the session's high of 24,054.45. Market breadth remained firmly positive, with 2,479 shares rising against 864 declines on the BSE, while 193 shares remained unchanged. The broader market also participated strongly, with the BSE 150 MidCap Index closing 0.94% higher at 61,966.60 and the Nifty Smallcap 100 gaining 246.50 points or 1.37% to close at 18,202.70. The Nifty Midcap 100 rose 0.7% and the Nifty Smallcap 100 advanced 1.09%, indicating broad-based participation across market segments.
The Nifty Auto index emerged as the top sectoral gainer, rising more than 2 percent, while banking indices gained over 1.5 percent each. As reported by Business Standard, all sectoral indices traded in green on the NSE, with Auto, PSU bank and Oil & gas shares gaining the most. Other sectors participating in the rally included realty, PSU banks and oil & gas, with the Nifty Realty index gaining 1.23 percent and Oil & Gas index advancing 1.12 percent. The India VIX, a gauge of market volatility, tanked 4.91% to 17.03, reflecting improving risk appetite as investors rotated into cyclical sectors.
Automobile stocks led the rally, with the Nifty Auto index climbing 2.16 percent. According to Business Standard reports, Eicher Motors surged 6.45% to emerge as the top gainer on the Nifty 50, following strong Q4 FY26 results that showed consolidated net profit jumping 11.58% to ₹1,519.95 crore. The company's revenue from operations rose 16% to ₹6,080.09 crore in Q4 FY26 compared to ₹5,241.11 crore a year ago. In banking, Bajaj Finance rose 2.99%, Tata Motors PV gained 2.86% and Larsen & Toubro advanced 2.76%. Other notable performers included Adani Enterprises up 4.77%, ICICI Prudential Asset Management Company gaining 3.60%, and Hindustan Petroleum Corporation rising 3.59% as oil marketing companies advanced on fuel price hikes.
The rally came amid a sharp fall in global crude oil prices, with Brent crude for July 2026 settlement tanking $6.22 or 6.01% to $97.32 per barrel. As reported by Business Standard, investor sentiment improved after reports suggested the Strait of Hormuz could reopen soon, triggering a sharp decline in oil prices and lifting risk appetite across markets. West Texas Intermediate crude futures for July fell 4.47% to $92.28 per barrel, while U.S. President Donald Trump reportedly said negotiations with Iran were proceeding in an orderly and constructive manner. The decline in India VIX by more than 4 percent further reflected improving risk appetite, as investors rotated into cyclical sectors such as autos, banks and financials at the start of the trading week.
IT stocks underperformed the broader market, with the Nifty IT index slipping marginally, as reported by Business Standard. TCS and Infosys among the few Nifty constituents trading in the red. Hindalco was the biggest drag on the benchmark, falling 1.8%, while ONGC also traded lower despite the broader market rally. The underperformance of IT stocks contrasted with the strong gains in cyclical sectors, reflecting selective investor interest in sectors benefiting from the current market environment. In the mid-cap segment, Oil India declined 3.35% and Colgate Palmolive fell 2.68%, while Info Edge dropped 2.50% and FSN E-Commerce Ventures declined 2.42%.
