Benchmark equity indices Sensex and Nifty surged in early trade on Monday (May 25, 2026), with the 30-share BSE Sensex jumping 908.98 points to 76,317.85 and the 50-share NSE Nifty surging 262.65 points to 23,977.70. According to The Hindu, the strong opening was supported by a sharp correction in crude oil prices and a rally in global markets amid improving sentiment surrounding U.S.-Iran negotiations. From the 30-Sensex firms, Mahindra & Mahindra, HDFC Bank, Bajaj Finance, Bajaj Finserv, Larsen & Toubro, and InterGlobe Aviation were among the biggest winners, while Tata Consultancy Services and Sun Pharma were the laggards. The previous session saw the Sensex climb 231.99 points, or 0.31%, to settle at 75,415.35 and the Nifty edge higher by 64.60 points, or 0.27%, to end at 23,719.30.
Brent crude, the global oil benchmark, tanked 5.58% to trade at $97.76 per barrel, marking a significant pullback from recent highs above the $100-105 zone. As per Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth, Brent crude has cooled from extreme panic-driven highs and is now hovering closer to the $106–107 range. The global benchmark Brent crude oil prices dropped below the psychologically important $100-per-barrel mark, falling 4.55% to $98.83 per barrel, as the United States and Iran reportedly move closer to signing a peace deal to end the West Asia conflict this week. For an economy heavily dependent on energy imports, softer oil prices provide meaningful support by easing inflation concerns, reducing pressure on the import bill and improving margin visibility across sectors such as paints, aviation, logistics, tyres and industrials. The latest developments show oil prices fell more than 5% after Trump's comments about Iran negotiations, with the Trump administration having imposed a blockade on Iranian ports and Tehran effectively closing the Strait of Hormuz, one of the world's most important energy waterways.
The Nifty 50 remains range-bound, hovering below a key resistance zone near 23,800–23,900, which has emerged as a significant hurdle for sustained upward movement. As per technical analysis from EquityResearch.asia, immediate resistance levels are at 23,800 and 24,000, while supports come in at 23,500 and 23,600. According to Ponmudi R, CEO of Enrich Money, resistance is seen in the 23,800-23,900 zone, with a breakout potentially opening the door towards 24,000-24,200, while immediate support is placed near 23,600. The India VIX declined 4.68% to 17.91 on a weekly basis, indicating a temporary moderation in market anxiety. The weekly Relative Strength Index (RSI) stands at 42.35 and remains neutral, showing no meaningful bullish or bearish divergence against price. The weekly Moving Average Convergence/Divergence (MACD) remains below its signal line and is still in bearish territory, although the histogram has started to contract, hinting at weakening downside momentum.
Despite the positive crude oil developments, unabated heavy selling by foreign portfolio investors (FPIs) will keep markets under pressure. As reported by The Hindu BusinessLine, FPI selling for May up to 23rd stood at ₹30,374 crore, taking the total FPI selling in 2026 to ₹2,22,343 crore. Latest data shows that Foreign Institutional Investors (FIIs) offloaded equities worth ₹4,440.47 crore on Friday, according to exchange data. According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, as reported by The Hindu, poor earnings growth in India, much better earnings growth and prospects for earnings growth in other markets, high bond yields, particularly in the US and continuous rupee depreciation are the major reasons for FPI selling. However, domestic investors acted as a support for the benchmark indices, buying more than ₹6,000 crore worth of assets across the exchanges, providing some stability to the market.
Asian markets were largely trading in the green due to the lower crude oil prices, with Japan's Nikkei 225 index and Shanghai's SSE Composite index trading higher. According to The Hindu, markets were closed in South Korea and Hong Kong due to holidays. U.S. markets ended in positive territory on Friday, with Nasdaq futures gaining 0.89% and S&P 500 futures advancing 0.6%, reflecting improved appetite for risk assets. The positive sentiment was further boosted by improving sentiment surrounding the U.S.-Iran negotiations, with markets waiting for clarity and certainty since many similar expectations have been belied since the start of the war. As per Ponmudi R, crude oil prices have corrected sharply, marking a significant pullback from recent highs above the USD 100-105 zone, which is being viewed as a meaningful positive for India's macroeconomic outlook.
