Indian benchmark indices extended gains for a third consecutive session with Nifty rising 312.40 points, or 1.32%, to end at 24,031.70 and BSE Sensex surging 1,073.61 points, or 1.42%, to settle at 76,488.96. According to The Economic Times, the rally was driven by robust buying in heavyweight pockets such as banking and financials, energy, and automobiles. The broader market participation was strong with India VIX ending at 16.70, down by 6.74% from the previous closing, indicating reduced volatility and improved market sentiment. Out of 4,531 stocks that traded on BSE on May 25, 2,703 stocks witnessed advances, 1,607 saw declines while 221 remained unchanged, showing positive breadth across the market.
Global oil prices dropped sharply after the US signalled progress toward a potential agreement with Iran that could eventually reopen the Strait of Hormuz, easing fears over prolonged disruptions to global energy supplies. As reported by NDTV Profit, Brent crude fell as much as 5.4% to $97.97 a barrel, while West Texas Intermediate traded below $92. The decline marks Brent's fourth drop in five sessions and puts prices on track for their lowest close in more than a month. Trump said negotiations with Iran were progressing, although he cautioned that a final agreement had not yet been completed. On Monday, West Texas Intermediate crude futures fell about 5% to $91.65 a barrel and Brent crude futures also declined around 5% to $98.30 a barrel. European markets also participated in the rally with Stoxx 600, Germany's Dax, French CAC and Spain's IBEX 35 trading up between 1% and 2.3% around 5:11 pm CEDT.
Technical analysts are signalling strong bullish momentum for Nifty with several positive indicators. Rupak De from LKP Securities noted that Nifty has reclaimed both the 20EMA and 50EMA after spending several days below the 20EMA, indicating a strong sign of sustained recovery. The bullish crossover in the RSI is further supporting positive momentum, with potential to move towards 24,200 and higher in the short term, while support is placed at 23,800. Ajit Mishra from Religare Broking said Nifty has finally surpassed the key hurdle at the 24,000 mark and may gradually inch toward the 24,400–24,600 zone in the near term. However, scheduled monthly expiries over the next two sessions and the ongoing earnings season may keep stock-specific volatility elevated, requiring a cautious yet positive stance.
The rally showed strong participation across sectors with Auto sector leading gains at over 2.1%, followed by Bank, Financial Services, and PSU Bank sectors. According to The Economic Times, Apollo Hospitals Enterprise (₹263 crore), MTAR Technologies (₹255 crore), Lenskart Solutions (₹233 crore), Bank of Baroda (₹170 crore), Mahindra & Mahindra (₹116 crore), Eicher Motors (₹91 crore) and Kotak Mahindra Bank (₹89 crore) were among the most active stocks in value terms. Vodafone Idea (5.23 crore shares), JP Power (1.06 crore shares), Suzlon Energy (98.88 lakh shares), Ola Electric (95.44 lakh shares), YES Bank (90.29 lakh shares), SpiceJet (67.49 lakh shares) and Apollo Hospitals (66.94 lakh shares) were the most actively traded in volume terms. 154 stocks hit their 52-week highs while 51 stocks slipped to their 52-week lows, with notable gainers including Aanchal Ispat, Adani Enterprises, Adani Power, Cords Cable Industries, Hindalco Industries, Vodafone Idea and JB Chemicals & Pharmaceuticals.
Petrol and diesel prices have been hiked for the fourth time in just 11 days, with Indian oil marketing companies announcing an average hike of ₹2.7 per litre on Monday morning. According to NDTV Profit, this follows previous hikes of ₹3 per litre on May 15, and 90 paise each on May 19 and May 23, taking the cumulative hike to ₹7.5 per litre. The price increases are a desperate measure to help OMCs such as Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL) and Indian Oil Corporation (IOC) cut back on heavy losses from the Iran War. Analysts estimate that every 50 paise per litre increase in fuel marketing margins lifts EBITDA by 7% for IOCL, 8% for BPCL and 11% for HPCL.
