Indian benchmark indices opened sharply higher on Monday, May 25, 2026, driven by a steep fall in global crude oil prices and improving signals from US-Iran negotiations. According to reports from The Hindu BusinessLine, the BSE Sensex opened at 76,135.82 and was trading at 76,271.78, up 856.43 points or 1.14 per cent as of 9:18 am. The NSE Nifty 50 opened at 23,940.25 and was trading at 23,973.15, gaining 253.85 points or 1.07 per cent. The rally was led by Gift Nifty trading around 23,950, up 259 points before the open, signalling strong momentum. As per Economic Times, GIFT Nifty on the NSE IX traded higher by 212 points, or 0.89 per cent, at 23,977, signaling that Dalal Street was headed for a gap-up start on Monday.
Crude oil prices fell sharply on reports that a potential US-Iran agreement could reopen the Strait of Hormuz. As reported by The Hindu BusinessLine, August Brent crude futures were at $97.38 per barrel, down 2.62 per cent, while WTI July futures fell 6.34 per cent to $90.47. On the Multi Commodity Exchange, June crude futures were trading at ₹8,668 against the previous close of ₹9,168, down 5.45 per cent, and July futures were at ₹8,436 against ₹8,893, down 5.14 per cent. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that crude has dipped by $5 to below $100 on expectations that US and Iran are close to a deal. According to Economic Times, oil prices plunged over five percent and Asian markets ticked up early on Monday on hopes of a deal to end the US-Iran war. However, oil prices hit two-week lows amid optimism for a peace deal, though hopes were tempered by U.S. President Donald Trump's comments.
The Indian rupee has recovered significantly from recent lows, providing additional support to market sentiment. According to reports from The Hindu BusinessLine, the rupee, which had weakened to a record low near 96.9, has recovered to trade in the 95.5–95.7 range against the U.S. dollar. Vijayakumar added that the appreciation in the rupee from the recent low of 96.96 is a welcome trend, noting that stability in the currency is necessary to bring back the FPIs who have been on a sustained sell mode. As per Economic Times, gold prices rose more than 1% on Monday, supported by a weaker dollar and lower oil prices, as investors weighed prospects of a breakthrough in U.S.-Iran peace negotiations. Other precious metals like silver, platinum, and palladium also saw gains.
Among Nifty50 stocks, Eicher Motors was the top gainer, opening at ₹7,237 and trading at ₹7,343, up 5.18 per cent. As reported by The Hindu BusinessLine, Shriram Finance rose 2.82 per cent to ₹967.50, while Bajaj Finance climbed 2.39 per cent to ₹938.50. Mahindra & Mahindra advanced 2.33 per cent to ₹3,153.20, and TMPV gained 1.90 per cent to ₹370.25. Auto and financial stocks led the charge, reflecting improved consumer and credit sentiment following the easing in energy costs. According to Economic Times, top trending stocks include SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, and NTPC Share Price.
The previous week was range-bound, with the Nifty closing 64 points higher and the Sensex up 232 points. According to reports from The Hindu BusinessLine, the IT index outperformed, gaining 4.25 per cent, while the Digital index rose 2.75 per cent. The Media index was the worst-performing sector, falling over 4 per cent. Institutional activity remained divergent, with Foreign Institutional Investors (FIIs) selling equities worth ₹4,440.50 crore on May 22, while Domestic Institutional Investors (DIIs) bought equities worth ₹6,003.50 crore. As per Economic Times, analysts suggest a crucial resistance at 23,800-23,900; failure to surpass this level could lead to a test of 23,200-23,000 support. A decisive move above this range would signal a pause in the downtrend and open upside towards 24,200 and 24,600 levels.
