The Indian stock market opened significantly higher on Monday, May 25, with both benchmark indices posting strong gains. According to latest NSE data, NIFTY50 opened 0.93% or 220 points higher at 23,940.25, compared to the previous close of 23,719.30 points. As of 9:20 am, the index was trading 1.07% higher in early trade. The BSE SENSEX opened 0.95% or 720 points higher at 76,135.82 points, up from the previous close of 75,415.35 points. The index was trading 1.12% higher during the early market session after the opening bell. However, the market momentum intensified throughout the session, with SENSEX touching an intraday high of 76,335, up 919.5 points or 1.20%, and NIFTY50 hitting an intraday high of 23,989, up 270 points or 1.12%. As of 9:30 AM, SENSEX was up 903.24 points or 1.20% at 76,318.59, while NIFTY50 rose 262.70 points or 1.11% to settle at 23,982. The market momentum continued to build, with SENSEX touching a new high of 76,386.71, up 971 points or 1.28%, and NIFTY50 reaching an intraday high of 23,996, up 276 points or 1.16%. As of the latest data, SENSEX was up 971 points or 1.28% at 76,386.71, while NIFTY50 rose 276 points or 1.16% to settle at 23,996.
The stock market witnessed key support from falling oil prices in the global market, which were near $96 per barrel on early market hours of Monday, compared to earlier levels above $100 per barrel last week. According to latest reports, Brent crude was down 5.47% at $97.88 per barrel, while US West Texas Intermediate (WTI) crude was down 5.63% at $91.16. The oil prices also dragged the US dollar demand in the market, adding to the strength of the Indian rupee. Shares of three state-run oil marketing companies, including Hindustan Petroleum Corporation (HPCL), Bharat Petroleum (BPCL), and Indian Oil Corporation (IOC), gained over 4% each as petrol and diesel prices were raised again on Monday. The latest increase marks the fourth fuel price hike since May 15, pushing the cumulative rise in petrol and diesel rates to nearly ₹7.5 per litre after daily price revisions resumed following a long freeze. In Delhi, petrol prices climbed by ₹2.61 per litre to ₹102.12, crossing the ₹100 threshold, while diesel rates went up by ₹2.71 to ₹95.20 per litre.
The broader market participation was robust with Nifty Midcap 100 rising 0.83% and Nifty Smallcap 100 gaining 1.15% in early trade. On the sectoral front, barring Nifty IT, all the indices were trading higher. Nifty Auto emerged as the top gainer, rising nearly 2.5%, while Nifty Bank, Financial Services, PSU Bank, Realty, and Oil & Gas gained in the range of 1 to 2%. The positive sentiment was reflected in the India VIX, the fear gauge index, falling more than 6% to 16.68, indicating reduced market volatility expectations. In today's rally, investors gained more than ₹5.15 trillion, as the total market capitalisation of all BSE-listed companies jumped to ₹467.40 trillion, compared with the previous session's all-India market capitalisation of ₹462.25 trillion.
The market rally was significantly boosted by easing geopolitical concerns following developments in US-Iran negotiations. On Saturday, US President Donald Trump said that a deal with Tehran was "mostly finalised" and that more details would be revealed soon. However, the next day, he cautioned his negotiating team against moving too quickly toward an agreement. Earlier, Trump had said the agreement would involve reopening the strategically important Strait of Hormuz shipping route, though he did not provide additional details. The narrow passage, which normally carries about one-fifth of the world's oil and liquefied natural gas (LNG) supplies, has effectively remained shut since the conflict began on February 28, 2026. The hope of a potential US-Iran peace deal this week provided additional momentum to global markets, with Japan's Nikkei 225 surpassing the 65,000 mark for the first time on Monday, reaching a record high during thin holiday trading in Asia.
