- Indian equities surged, driven by global optimism over U.S.-Iran talks.
- Banking and financial sectors led gains, while healthcare underperformed.
- Declining crude oil prices boosted investor sentiment significantly.
Market Update at 12:19 PM: Indian equity benchmark indices traded sharply higher on Monday, tracking positive global cues after renewed optimism surrounding a potential U.S.-Iran agreement boosted investor sentiment across global markets. At around 12:00 PM, the Nifty 50 was up 270.35 points, or 1.14 per cent, while the Sensex surged 943.61 points, or 1.25 per cent, to 76,358.96.
Among the Top Gainers on the Nifty 50 index were Eicher Motors, Eternal, and Shriram Finance, supported by broad-based buying across sectors. The rally extended to broader markets as well. The Nifty MidCap index traded 0.94 per cent higher, while the Nifty SmallCap index gained 1.38 per cent, reflecting improved risk appetite among investors.
On the sectoral front, the Nifty PSU Bank index emerged as the top performer. Banking and financial stocks remained in focus, with the Nifty Private Bank, Nifty Bank, and Financial Services indices also outperforming the broader market. However, the Nifty Healthcare index underperformed compared to other sectors.
Global sentiment improved after U.S. President Donald Trump stated that negotiations with Iran were progressing constructively. He also reportedly advised negotiators not to rush into a deal, indicating that Washington believes time remains on its side in the ongoing discussions. Meanwhile, crude oil prices witnessed a sharp decline amid expectations that easing tensions between the U.S. and Iran could potentially improve access through the Strait of Hormuz, a key global oil shipping route.
Brent crude futures fell as much as 5 per cent, with the May futures contract declining 5.49 per cent to USD 97.86 per barrel. The sharp drop in crude prices also supported market sentiment, as lower oil prices are generally viewed as positive for oil-importing economies such as India.
Market Update at 09:35 AM: Indian equity benchmarks opened sharply higher on Monday, supported by strong global cues and optimism surrounding a possible diplomatic breakthrough between the U.S. and Iran. Lower crude oil prices further boosted investor sentiment, helping benchmark indices extend gains in early trade. At around 9:20 AM, the Nifty 50 advanced 249.15 points, or 1.05 per cent, to 23,974.15, while the Sensex climbed 818.14 points, or 1.08 per cent, to 76,233.49. The broader markets also traded firmly in positive territory.
The Nifty MidCap index rose 0.73 per cent, while the Nifty SmallCap index gained 1.07 per cent, reflecting improved risk appetite among investors. Market sentiment strengthened after U.S. President Donald Trump stated that negotiations with Iran were progressing constructively. He added that U.S. negotiators had been advised not to rush the discussions, indicating that Washington believes time remains in its favour. Meanwhile, global crude oil prices declined sharply amid expectations that easing tensions between the U.S. and Iran could improve stability in the region and potentially reopen the Strait of Hormuz more smoothly for energy shipments. Brent crude futures fell as much as 5 per cent during trade.
The May futures contract was down 3.92 per cent at USD 99.48 per barrel.
Pre-Market Update at 7:42 AM: Indian benchmark indices, the Sensex and Nifty 50, are expected to open on a strong note on Monday, May 25, tracking upbeat global cues after hopes of a potential U.S.-Iran peace agreement pushed crude oil prices sharply lower. Easing oil prices improved investor sentiment by reducing concerns around inflation and interest rates.
Gift Nifty was trading near the 23,961 mark, a premium of nearly 196 points over the previous close of Nifty futures, indicating a positive start for domestic equities. Asian markets advanced, while Wall Street ended higher as investors reacted positively to signs of progress in talks aimed at easing tensions in the Middle East. Investor optimism improved after U.S. President Donald Trump stated that Washington and Tehran were close to a broad agreement that could help ease tensions in the Gulf region and reopen the Strait of Hormuz.
Trump said most parts of the agreement had already been negotiated and only final details remained. However, Iranian media rejected claims that the Strait of Hormuz would be fully reopened under the proposed deal, reiterating that the strategic route would remain under Tehran’s control. Meanwhile, economic data from the U.S. remained weak.
The University of Michigan’s Consumer Sentiment Index dropped to 44.8 in May from 49.8 in April, missing market expectations of 48.2. The sharp decline highlighted continued concerns among consumers over inflation and economic uncertainty. In a major domestic development, the Reserve Bank of India announced a record Dividend payout of Rs 2.87 lakh crore to the government for FY26, marking a 6.7 per cent increase from Rs 2.69 lakh crore in the previous financial year.
Petrol and diesel prices were increased for the fourth time in less than two weeks. In Delhi, petrol prices rose by Rs 2.61 per litre to Rs 102.12, while diesel prices increased by Rs 2.71 to Rs 95.20 per litre. Crude oil prices witnessed a sharp decline amid expectations of a possible U.S.-Iran agreement and reopening of the Strait of Hormuz. Brent crude fell 5.08 per cent to USD 98.28 per barrel, while WTI crude dropped 5.29 per cent to USD 91.49 per barrel. Gold prices moved higher as a weaker dollar and falling oil prices boosted safe-haven demand. Spot gold climbed 1.4 per cent to USD 4,570.88 per ounce, while spot silver surged 3.9 per cent to USD 78.42 per ounce.
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The dollar index slipped below the 99 mark, retreating from six-week highs as easing geopolitical tensions reduced concerns over inflation and aggressive rate hikes. From a derivatives perspective, the Put-Call Ratio (PCR) stood at 1.01, indicating a balanced market setup with a slight positive bias. On the put side, significant open interest was concentrated at the 23,000 and 23,500 strikes, suggesting these levels could act as important support zones for Nifty 50. On the call side, the highest open interest among near out-of-the-money strikes was seen at the 24,000 level, making it an immediate resistance zone.
Technically, Nifty 50 continues to trade within a narrow consolidation range. Immediate resistance is placed in the 23,830–23,860 zone, which remains a key breakout level for bulls. A sustained move above this range may trigger fresh momentum and short covering, potentially pushing the index towards 24,000 and 24,130. On the downside, immediate support is seen at 23,450, followed by stronger support near 23,262. Analysts believe the broader trend remains range-bound with a mildly positive bias as long as the index holds above these support levels. Several stocks are expected to remain in focus due to earnings announcements, index changes and corporate developments.
Companies scheduled to announce quarterly earnings on May 25 include Aditya Birla Fashion and Retail, Amara Raja Energy & Mobility, Awfis Space Solutions, Container Corporation of India, NBCC, Rail Vikas Nigam, Suzlon Energy and Hitachi Energy India among others. For Monday’s session, SAIL and Kaynes Technology India remain under the F&O ban list. On May 22, Foreign Institutional Investors (FIIs) sold equities worth Rs 4,440.47 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 6,003.53 crore.
On Friday, Indian markets ended higher amid gains in select heavyweight stocks. The Sensex rose 231.99 points, or 0.31 per cent, to close at 75,415.35, while Nifty 50 gained 64.60 points, or 0.27 per cent, to settle at 23,719.30. U.S. markets also ended in positive territory. The Dow Jones Industrial Average climbed 294.04 points, or 0.58 per cent, to close at a record high of 50,579.70. The S&P 500 advanced 0.37 per cent to 7,473.47, while the Nasdaq Composite rose 0.19 per cent to 26,343.97.
Among major stocks, NVIDIA fell 1.90 per cent, while Advanced Micro Devices gained 3.99 per cent. Apple added 1.26 per cent, Dell Technologies surged 17 per cent, HP jumped 15 per cent, Qualcomm rallied 12 per cent, and Tesla gained 1.95 per cent.
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