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 implementation of a 50% tariff on EU imports from June 1 to July 9.
  
  
• This delay eased global trade tensions and had a positive ripple effect on Asian markets, including India.
  
  2. RBI's Record Dividend
  

• The Reserve Bank of India announced a record ₹2.69 lakh crore dividend for FY 2024–25.
  
  
• This large surplus strengthens the government's fiscal position and boosts investor sentiment.
  
  3. Weakening US Dollar
  

• The dollar index fell for the third consecutive session, nearing a one-month low.
  
  
• A weaker dollar tends to increase foreign capital inflows into emerging markets such as India.
  
  

         4.Strong Domestic Macros

• India is experiencing falling inflation and consistent GDP growth.
  
  
• The country has overtaken Japan to become the world’s fourth-largest economy, further bolstering economic confidence.
  
  

5. Rising Retail Participation
   

• More than six lakh new retail investors joined the markets in the past week.
  
  
• Continued retail interest provides resilience to 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.