Sensex and Nifty News: Benchmark Indices Rally, Nifty Hits 25,000 Mark

Market Performance

On Monday, May 26, Indian stock markets extended their winning streak for a second consecutive session, backed by favorable global signals and strong domestic fundamentals.

• Sensex jumped 455 points or 0.56%, closing at 82,176.45
• Nifty 50 surged 148 points or 0.60%, reclaiming the 25,000 milestone at 25,001.15
• Nifty Auto and IT indices were among the top sectoral performers, each gaining over 1%
• Broader market indices also closed higher:
  • Nifty Midcap 100 rose 0.70%
  • Nifty Smallcap 100 added 0.40%
• Market breadth remained positive, with 2,212 stocks advancing, 1,704 declining, and 184 unchanged

The overall BSE market capitalization rose from ₹442 lahks Crore to nearly ₹445 lahks Crore, increasing investor wealth by approximately ₹3 lakh Crore in a single session.

Main News

5 Key Drivers Behind the Market Surge

1. Tariff Relief from the US

President Donald Trump postponed the 50% tariff on EU imports from June 1 to July 9. This decision eased global trade tensions, benefiting Asian markets, including India.

2. RBI's Record Dividend

The Reserve Bank of India has officially announced a ₹2.69 lakh Crore dividend distribution to the central government for the fiscal year 2024–25. This surplus supports fiscal health and investor confidence.

3. Weakening US Dollar

The dollar index declined for a third straight session, approaching its lowest level in a month. A weaker dollar typically results in higher foreign capital inflows into emerging markets like India.

4. Strong Domestic Macros

India's macroeconomic fundamentals remain robust, with falling inflation and steady GDP growth. The country's economic position further improved with the announcement that India is now the world's fourth-largest economy, overtaking Japan.

5. Rising Retail Participation

Over six lakh new retail investors entered the markets last week alone. This consistent retail interest continues to cushion Indian equities.

Company Highlights

Top Gainers

• Bajaj Auto, M&M, JSW Steel, Hindalco, Trent: Led the rally with notable intraday gains

Major Decliners

• Eternal Ltd (formerly Zomato): Fell nearly 5% amid concerns of $840 million passive outflows due to changes in global indices
• Balkrishna Industries (BKT): Declined over 6% following a 25% YoY drop in net profit for Q4

Tata Motors

The stock gained 1.5% after the US tariff delay, providing relief to Jaguar Land Rover, which had paused US shipments earlier.

Volatility Update

The India VIX, which gauges market volatility, rose by 4.28% to 18.02, signaling growing caution among seasoned investors.

Sectoral Overview

• Top Performers: Auto, IT, Metal, Realty, FMCG, Consumer Durables, and Energy
• Banking Sector: Nifty Bank up 0.16%, PSU Bank index up 0.13%

Summary

The Indian equity market posted another robust session led by global trade relief, RBI's record dividend, and a solid domestic macro outlook. The Sensex and Nifty News reflected renewed investor optimism, with the Nifty crossing 25,000 and the Sensex climbing over 450 points.

Investor wealth saw a remarkable jump of ₹3 lakh Crore as broad-based buying lifted most sectors. With global cues aligned and strong internal economic momentum, Indian indices continue to showcase resilience and growth.