Sensex Today | Nifty 50 | Stock Market Highlights 25 May 2026: Banks lift indices as crude drops, rupee firms

Indian equities logged their strongest session in over two weeks on Monday as Sensex jumped more than 1,070 points and Nifty 50 reclaimed the 24,000 mark, driven by a sharp fall in crude oil prices, optimism over potential US–Iran peace talks, and a firmer rupee.

Market Overview

Index	25 May Close	Move & % Change	Comments
Sensex	76,488.96	+1,074 pts (+1.42%)	Best close since 8 May, broad-based buying in financials and autos.
Nifty 50	24,031.70	+312 pts (+1.32%)	Closed above 24,000 after breaking recent range cap near 23,800–23,900.
Bank Nifty	55,238.15	+1,183 pts (+2.19%)	Outperformed as private and PSU banks rallied 2–3%.
Nifty Midcap 100	approx. 53,700	approx. +1.0%	Participated in risk-on move, but lagged large-cap banks.
Nifty Smallcap 100	approx. 18,400	approx. +1.0%	Gains in broader market, market breadth positive on NSE.
India VIX	16.70	-7%	Volatility cooled further, aiding risk appetite.

Note: figures for midcap and smallcap indices are approximate; final exchange data not available at time of publication.

• BSE market capitalisation rose by about ₹6 lakh crore to nearly ₹469 lakh crore, per BSE figures.
• On NSE, about 2,271 stocks advanced, 1,046 declined, and 102 were unchanged.
• India VIX fell below 17, extending last week’s decline and signalling easing near-term fear.

Key Drivers

• US–Iran peace hopes lifted risk sentiment, with traders betting on progress to reopen the Strait of Hormuz.
• Brent crude fell over 5% to trade below $100 a barrel, easing concerns on inflation and the current account.
• The rupee appreciated 35 paise to close near 95.23–95.25 per dollar, helped by softer oil and RBI’s commitment to orderly forex markets.
• The dollar index and US Treasury yields eased, improving the relative appeal of emerging market equities.
• Global equities rallied, with Japan’s Nikkei 225 crossing 65,000 for the first time and European indices hitting multi-month highs.

Sectoral Action

Sector / Index	Direction (approx.)	Key Drivers
Nifty Bank	up 2%	Short-covering and value buying after recent underperformance; support from lower yields.
Nifty Financial Services	up 2%	Strong gains in Bajaj twins, large private banks after Q4 earnings.
Nifty PSU Bank	up 3%	Risk-on trade, higher beta play on falling crude and rupee stability.
Nifty Auto	up 1%+	Benefited from lower fuel price expectations and domestic demand optimism.
Nifty Realty	up 1%+	Bargain hunting after recent correction, aided by softer yield backdrop.
Nifty Oil & Gas	up 1%+	Relief from crude correction; sentiment improved on macro tailwind.
Nifty Consumer Durables	up 1%+	Demand optimism and lower input cost expectations supported buying.
Nifty FMCG	down 0.2%	Defensive pocket saw mild profit booking in a risk-on session.
Nifty IT	up ~1% intraday	Helped by weaker rupee; still among worst YTD sectoral performers.

• Financials and rate-sensitive pockets led the move, aligning with the drop in global yields and crude.
• FMCG and select defensives lagged as investors rotated into cyclicals and high beta names.

Top Movers

Top Gainers (Sensex)

Stock	Sector	Notable Factor
Bajaj Finance	NBFC	Rose about 3% on risk-on sentiment and support from strong Q4 print.
HDFC Bank	Banking	Gained around 2.6% as large private banks attracted fresh buying.
Eternal (Zomato parent)	New-age consumer tech	Advanced over 2% amid broad-based rally in financials and consumer names.
Larsen & Toubro	Capital goods	Climbed about 2.7% on infra and capex optimism.
Bajaj Finserv	NBFC	Added more than 2% tracking strength in financials.
SBI	PSU banking	Rose over 2% as PSU banks outperformed on crude relief.
ICICI Bank, Kotak Mahindra Bank, Axis Bank, M&M	Banking / Auto	Each gained about 2% as cyclicals led the advance.

Top Losers (Sensex)

Stock	Sector	Notable Factor
Infosys	IT services	Closed marginally lower despite sector rebound, reflecting ongoing IT caution.
TCS	IT services	Saw mild losses after heavy YTD correction and AI-related concerns.
Hindustan Unilever	FMCG	Edged down as investors rotated out of defensives.
Sun Pharma	Pharma	Slipped slightly after recent strong sector run-up and profit booking.

• Outside the benchmarks, Oracle Financial Services Software, Wipro, Tech Mahindra, Mphasis, Persistent Systems, Coforge and TCS traded 1–3% higher intraday, lifting the Nifty IT index above 29,000.
• Railway names such as Jupiter Wagons and Titagarh Rail Systems rallied up to 10% on expectations of a large freight wagon tender from Indian Railways.

Technical Outlook on Nifty 50

• Immediate resistance: 24,000–24,120, coinciding with the 50–52 day EMA and a prior bearish gap.
• Next resistance zones highlighted by analysts:

– 24,200–24,400

– 24,320

– 24,500–24,600

• Support zones cited across brokerages:

– 23,850–23,870 as crucial near-term support.

– 23,800–23,900, earlier resistance, now seen as support on dips.

– Below 23,850, next support at 23,600–23,500.

• Options data showed call writing at 24,000 and 24,100 strikes, indicating resistance, while puts were concentrated at 23,900 and 23,800, signalling support.
• Analysts described the broader structure as a tight consolidation with potential for range expansion if Nifty sustains above the 24,000–24,120 band.

Bank Nifty and Sectoral Technicals

• Bank Nifty closed around 55,238, up 2.19%, outperforming the headline indices.
• Key levels flagged by technical research desks:

• Immediate resistance at 54,400–54,500, then 54,900–55,300.
• Stronger resistance near the 50-day EMA around 55,300–55,400.
• Support at 53,600–53,500, with a stronger base near 52,800–53,000.

• Some analysts still prefer a sell-on-rise stance in Bank Nifty until it sustains above key moving averages.

• In sectoral indices, Nifty IT is showing early signs of bottoming around 28,700–28,900 support, though resistance at 30,900–31,000 remains stiff.
• Nifty Pharma, which recently hit a 52-week high, is seeing signs of near-term profit booking after an extended rally.

Global Cues

Market / Asset	Movement	Notes
Nikkei 225 (Japan)	approx. +2.8%	Hit record above 65,000 on peace hopes and risk-on trade.
Shanghai Composite (China)	approx. +1%	Joined regional rally as oil eased.
Stoxx Europe 600	+0.7%	At over two-month high, banks and airlines led gains.
S&P 500 futures	+0.9%	Pointed to positive US open; Wall Street closed higher on Friday.
Brent crude	about -5% to ~$98	Fell below $100 on expectations of Strait of Hormuz reopening.
WTI crude	about -5% to ~$91.5	Mirrored Brent move, easing inflation fears.
USD/INR	rupee +0.5% to 95.23–95.25	Recovery from record lows, aided by RBI’s stance and softer oil.
US 10-year yield	to about 4.48–4.56%	Pulled back from recent highs, supporting EM flows.

• Markets globally reacted to comments from the US administration that a memorandum of understanding with Iran to reopen the Strait of Hormuz was “largely negotiated”, even as both sides signalled no rush to sign a deal.
• Trading volumes in Europe and the US were lighter due to public holidays, but the direction of travel remained supportive for risk assets.

Flows and Valuation Backdrop

• Despite Monday’s rally, foreign portfolio investors (FPIs) remain net sellers in 2026, with cumulative equity outflows exceeding ₹2.22 lakh crore, as per NSE provisional data cited by strategists.
• FPI selling in May alone stood above ₹30,000 crore up to 23 May, reflecting continued caution on India amid global reallocations to AI-heavy markets.
• Domestic flows through mutual funds and SIPs, along with retail participation, continue to cushion the impact of foreign selling.

• Analysts caution that for a durable medium-term uptrend, crude would need to stabilise below $90, the rupee must strengthen further, and earnings growth must sustain into FY27.
• For now, the day’s move is being read as a relief rally anchored in macro tailwinds rather than a confirmed trend reversal.

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