The Indian markets concluded Monday’s trade, May 25, with solid gains as both benchmark indices surged over 1% after a sharp decline in oil prices, driven by optimism surrounding a potential US-Iran peace deal, bringing much-needed relief and optimism to Dalal Street.
The jumped 1.4% to 24,050, marking its biggest single-day gain in two weeks, while the BSE Sensex rallied 1.42% to 76,462. The broader markets mirrored the same trend, with the Nifty Midcap 100 advancing 1% and the Nifty Smallcap 100 settling with an even stronger gain of 1.5%.
Risk-on sentiment improved after both the United States and Iran signalled progress towards reopening the Strait of Hormuz, which has remained effectively shut since late February. The potential easing of the nearly three-month-long tensions in the Middle East lifted hopes that crude supply disruptions could gradually ease.
That pushed lower in trade, with Brent crude futures falling 5% to around $98 per barrel, extending last week’s decline.
US President Donald Trump said on Saturday that a deal with Iran over the conflict, including reopening the Strait of Hormuz, had been “largely negotiated” following discussions with Israel and other allies in the region.
However, Trump added that Washington would keep its blockade of the Strait of Hormuz in place until a formal agreement is reached, stating that he would not “rush” into a deal.
Falling crude prices boost PSU, OMC stocks
PSU stocks led the gainers’ pack as yields on India’s 10-year G-Sec hovered near 7%, retreating to a more than one-week low amid easing crude oil prices.
All 12 constituents of the Nifty PSU Bank closed in the green, with topping the chart after surging 5%. It was followed by , , , UCO Bank, Bank of Baroda, and State Bank of India, all rising between 2.2% and 4.4%.
The decline in crude oil prices also boosted oil marketing companies (OMCs), with all three major players, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Indian Oil Corporation, ending with gains of over 3%.
Among auto stocks, jumped 6.2% to ₹7,141 apiece after the company’s March quarter earnings came broadly in line with estimates, while Ashok Leyland shares closed 3.7% higher at ₹164 apiece.
Amara Raja Energy & Mobility witnessed renewed buying interest, with the stock spiking 8% to ₹886 apiece. Ola Electric Mobility settled at ₹37.88, marking a 5.22% jump from Friday’s close.
Extending its rally for the fourth straight session, HFCL shares advanced another 10% to settle at a fresh record high of ₹163 apiece. Today’s rally has pushed the stock’s month-to-date gains to 40%, building on a strong 71% surge in April.
Four Adani Group stocks, , Adani Enterprises, Adani Green Energy, and Adani Energy Solutions, closed with gains ranging between 2.7% and 6.4%.
Siemens, SCI among major laggards despite market rally
Although the markets witnessed renewed optimism, some stocks ended the session with deep cuts, with and Shipping Corporation of India each closing 3.5% lower. Siemens also came under pressure after remaining higher for four straight sessions, giving up some of its recent gains as the stock ended 4% lower.
Other stocks such as Oil India, Timken India, Poly Medicure, Honeywell Automation India, Colgate-Palmolive India, , FSN E-Commerce Ventures, Sundaram Finance, Apar Industries, and Info Edge India all closed with losses of over 2%.
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