Benchmarks opened sharply higher on Monday, May 25, 2026, as a steep fall in global crude oil prices and improving signals from US–Iran negotiations lifted investor sentiment across sectors. The BSE Sensex, which closed at 75,415.35 on Friday, 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, which ended its previous session at 23,719.30, opened at 23,940.25 and was trading at 23,973.15, a gain of 253.85 points or 1.07 per cent, at the same time.

The rally was led by Gift Nifty trading around 23,950, up 259 points before the open, signalling strong momentum. Hitesh Tailor, Research Analyst at Choice Equity Broking, noted ahead of the opening bell: “...positive global market sentiment, strength across major Asian markets, and easing concerns around global geopolitical tensions have improved overall risk appetite among investors...”

Crude oil prices fell sharply on reports that a potential US–Iran agreement could reopen the Strait of Hormuz. 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, said: “...Crude has dipped by $5 to below $100 on expectations that US and Iran are close to a deal. The market will wait and watch for clarity and certainty since many similar expectations have been belied since the start of the war...”

The Indian 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: “...The appreciation in the rupee from the recent low of 96.96 is a welcome trend. Stability in the currency is necessary to bring back the FPIs who have been on a sustained sell mode...”

Among Nifty50 stocks, Eicher Motors was the top gainer, opening at ₹7,237 and trading at ₹7,343, up 5.18 per cent. 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.

On the losing side, Hindalco Industries fell 1.35 per cent to ₹1,094.20. ONGC slipped 1.03 per cent to ₹287.00 — pressure in the oil and gas sector reflecting the sharp crude price drop, which is seen compressing upstream margins. Max Healthcare dipped 0.58 per cent to ₹1,017.30, NTPC declined 0.44 per cent to ₹386.95, and Sun Pharma edged lower by 0.28 per cent to ₹1,839.50.

The previous week was range-bound, with the Nifty closing 64 points higher and the Sensex up 232 points. 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. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that on the weekly charts, a bullish candle has formed and the market is consolidating near the 50-day Simple Moving Average.

Institutional activity remained divergent. On May 22, Foreign Institutional Investors (FIIs) sold equities worth ₹4,440.50 crore, while Domestic Institutional Investors (DIIs) bought equities worth ₹6,003.50 crore, providing a cushion to broader market weakness.

Vijayakumar noted a broader positive undercurrent: “...Another positive trend is the better-than-expected Q4 results. An important trend to note is the impressive growth of most digital platform companies. The market has been rewarding performance...”

Globally, the Dow Jones hit a fresh intraday record high as Middle East tensions eased. Singapore’s Q1 GDP growth accelerated to 6 per cent. Japan’s core inflation eased to a four-year low. Mexico’s economy contracted in Q1, though less severely than feared. The U.K. posted its sharpest retail sales decline in nearly a year as fuel spending fell.

Technically, Nifty faces resistance at 23,800–23,900, with a breakout potentially taking it toward 24,000–24,200. Immediate support is placed at 23,600, while a break below 23,300 could pull the index toward 23,000. Bank Nifty, which closed at 54,055.35 on Friday — up 615.95 points or 1.15 per cent — faces resistance near 54,200, with support at 53,600–53,500. Ponmudi R, CEO of Enrich Money, a SEBI-registered trading and wealth-tech firm, cautioned that “...investors continue to remain mindful of lingering geopolitical risks...” even as the overall tone turns cautiously optimistic.

Published on May 25, 2026