Markets surge as Sensex jumps over 562 points in early trade; Nifty climbs 175.7 points

By | May 26, 2025

Monday, May 27, 2025 — The Indian equity markets opened on a buoyant note today as investor sentiment remained optimistic amid positive global cues and stable domestic indicators. The BSE Sensex shot up by over 562 points in early trade, while the NSE Nifty surged 175.7 points, reflecting strong buying across sectors.

Strong Start to the Week for Indian Equities

At the opening bell, the 30-share BSE Sensex soared to 75,320.55, up by 562.45 points or 0.75%, setting the tone for a robust trading session. The broader Nifty 50 index followed suit, climbing 175.7 points or 0.77% to touch 22,920.85, supported by gains in banking, IT, and FMCG stocks.

Analysts say the rally comes on the back of encouraging cues from Wall Street, improved foreign institutional investor (FII) inflows, and expectations of sustained domestic consumption and earnings growth.

Sectoral Gains Drive Market Sentiment

The early market rally was broad-based, with most sectoral indices trading in the green. The Nifty Bank index rose over 1.1%, supported by gains in private lenders like ICICI Bank, HDFC Bank, and Kotak Mahindra Bank. The Nifty IT index also witnessed buying interest as top tech companies bounced back after last week’s consolidation.

Among sectoral performers:

  • Nifty Auto gained over 0.9%, led by Mahindra & Mahindra and Tata Motors.
  • Nifty FMCG rose 0.8% as HUL, Nestlé India, and ITC saw buying interest.
  • Nifty Metal was also in the positive zone, supported by a rebound in global metal prices.

Top Gainers and Losers

In the Sensex pack, ICICI Bank, Infosys, HDFC Bank, Reliance Industries, and Tata Consultancy Services (TCS) emerged as the top contributors to the index rally.

Meanwhile, Sun Pharma, Bajaj Auto, and HCL Technologies remained under slight pressure and were among the few laggards during early trade.

Positive Global Cues Fuel Optimism

The upward momentum in Indian markets mirrors the positive performance in global equity markets. Major U.S. indices ended higher on Friday, with the Dow Jones Industrial Average, NASDAQ, and S&P 500 logging gains on renewed hopes of a soft landing for the U.S. economy and speculation that the Federal Reserve may not hike interest rates further this year.

Asian markets opened in green today, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index registering strong gains. Improved investor sentiment across the Asia-Pacific region has contributed to a more risk-on environment.

FIIs Turn Net Buyers Again

A key factor driving the Indian market’s strength is the return of foreign institutional investors. According to data from the National Stock Exchange, FIIs turned net buyers on Friday, infusing over ₹1,200 crore into equities. This trend is expected to continue as global funds increase allocations to emerging markets like India, which remain resilient amid global uncertainties.

Rupee Stable Against Dollar

The Indian Rupee opened flat at around ₹83.10 per dollar, showing stability despite fluctuations in crude oil prices and U.S. Treasury yields. A stable currency has further added to investor confidence.

Economic Data and Election Watch

Investors are also keeping a close eye on upcoming macroeconomic indicators, including India’s GDP data for Q4 FY25, scheduled to be released later this week. A better-than-expected reading could provide further fuel to the rally.

Additionally, the Lok Sabha election outcome, expected in early June, remains a key event. Market experts believe the benchmark indices are pricing in political continuity, which could translate into policy stability and growth-focused governance.

Expert Commentary

Market analyst Ramesh Shah of Axis Securities stated, “The bullish start to the week indicates strong undercurrents in the market. We’re seeing participation across sectors, which is a positive sign. The rally is also supported by global stability and renewed FII interest.”

Priya Mehta, senior research analyst at Motilal Oswal Financial Services, added, “Investors are optimistic about the upcoming GDP numbers. If the government delivers continuity post-elections, we could see the Nifty breach the 23,000 mark decisively.”

Outlook for the Day

With early gains showing strong momentum, market watchers expect indices to remain in the green unless profit-booking sets in during the second half. Key resistance for the Nifty is seen near 23,000, while immediate support is pegged at 22,750.

Traders are advised to keep an eye on:

  • GDP data release schedule
  • Global crude oil movement
  • U.S. inflation and jobless data due later this week

Conclusion

The sharp jump in Sensex and Nifty in early trade signals a confident mood among investors, fueled by a blend of domestic resilience and global support. While volatility may return closer to election result announcements, for now, the bulls seem to be in control.