Benchmarks Rally to Two-Week Highs on Easing West Asia Concerns

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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India Shares rise

By Dehuti Jani

May 25, 2026 at 11:54 AM IST

Indian equity benchmarks surged on Monday to their highest closing levels in nearly two weeks as easing tensions in West Asia and falling oil prices boosted global risk appetite. The Nifty50 jumped 1.32% or 312.40 points to close at 24,031.70, while the BSE Sensex gained 1.42% or 1,073.61 points to settle at 76,488.96.

Investor sentiment improved sharply after Donald Trump said negotiations between Washington and Tehran had “largely negotiated” a framework agreement aimed at reopening the Strait of Hormuz. The comments pushed Brent Crude prices down more than 5% to around $97.8 per barrel, easing concerns over inflation and India’s external balances.

Markets also tracked global equities higher as hopes of a diplomatic resolution in West Asia strengthened. However, gains were partially capped after US and Iranian officials indicated that key differences remained and that a final breakthrough may take time.

Sectorally, banking stocks led the rally, with PSU banks, private banks and financial services outperforming. Adani Enterprises, Eicher Motors, Larsen & Toubro and Bajaj Finance were among the top gainers on the Nifty50 index. Broader markets also participated in the rally, with the Nifty MidCap and Nifty SmallCap indices rising 0.94% and 1.37%, respectively.

Top Movers of the Day

Eicher Motors jumped over 6% to around ₹7,432 after the company beat Q4 estimates on both revenue and profit, with brokerages highlighting resilient premium motorcycle demand and raising target prices.

GAIL India climbed around 5% to ₹168.41 despite a nearly 38% year‑on‑year drop in Q4 profit, as upbeat brokerage notes and hopes that easing West Asia supply disruptions will improve gas availability kept investors positive.

Suzlon Energy slipped 0.5% to ₹53.5 after Q4 profit fell 5.7% year‑on‑year despite strong revenue growth, even as the company reported a record 2.5 GW of wind turbine deliveries in FY26.

Ashok Leyland climbed 3.8% to ₹164.27 after securing a 715‑vehicle order from VRL Logistics, including AVTR 3120 haulage trucks, BOSS 1615 trucks and Oyster staff buses, reinforcing its position as a trusted mobility partner.

IRFC advanced about 2.5% to ₹100.70 as the financier signed a refinancing deal worth roughly ₹135 billion for Hyderabad Metro, bolstering its credentials as a broader infrastructure lender beyond core rail assets.

HDFC Bank rose 2.69% to ₹787.45 and ICICI Bank rose 2.3% to ₹1,293.5 driven by strong quarterly performance and were key Nifty contributors as investors rotated into financials and autos on hopes that lower oil prices and softer bond yields will support growth and credit demand.

Apollo Micro Systems rallied up to 14% to hit a fresh high near ₹405, extending its multibagger run in May as heavy volumes and optimism around defence orders and private‑sector participation kept the stock in focus.

Park Medi surged about 7% to ₹278.2 after announcing a ₹1.77 billion acquisition of VS Healthcare, which investors viewed as strategically accretive for its regional healthcare footprint and growth prospects.

Hindalco slipped about 1% to ₹1,099 and ranked among the top Nifty losers after Q4 consolidated profit fell by nearly 51% year‑on‑year and missed estimates, with Novelis’ fire‑related disruption weighing on margins despite a strong India aluminium business.

Max Healthcare shares fell about 2.2% to ₹1,000 on continued pressure as the company’s Q4 FY26 earnings results missed market estimates.

Futures & Options
Nifty May 2026 futures closed at 24,119, a premium of 87.3 points over the spot Nifty 50 close of 24,031.70, reflecting improved bullish sentiment in the derivatives market following the sharp rally in equities. In the cash market, the Nifty 50 surged 312.40 points or 1.32%, while volatility cooled significantly with India VIX declining 6.74% to 16.70 amid easing geopolitical concerns and softer crude oil prices.

Among stock futures, HDFC Bank, Infosys and Tata Consultancy Services were the most actively traded contracts in the F&O segment of the NSE. The May 2026 derivatives series will expire on 26 May 2026.

Bonds
India’s government bond yields eased today as falling crude prices and renewed hopes of a US-Iran peace deal improved sentiment. The yields started easing since Friday last week as massive dividend transfer from the RBI to the government of ₹2.87 trillion. Yields fell further as the rupee strengthened after Sanjay Malhotra said the RBI would do “whatever is required” to ensure orderly forex moves and noted the currency appeared undervalued after a roughly 6% depreciation. He also reiterated that inflation control remains the RBI’s priority, while the central bank will support growth if conditions allow.

The benchmark 10-year 6.48%, 2035 government bond yield ended 7.0270%, lower than Friday’s close of 7.0917%.

Forex
Indian rupee strengthened for a third consecutive session on Monday, marking its longest winning streak in a month, supported by Reserve Bank of India intervention and easing crude oil prices. The rupee closed at 95.23 against the US dollar, recovering more than 1.5% from last Wednesday’s record low of 96.96. Traders said continued dollar-selling intervention by the Reserve Bank of India helped stabilise the currency after sharp weakness earlier this month.

Sentiment also improved after optimism grew around a possible breakthrough in US-Iran negotiations, which pushed Brent Crude prices sharply lower and reduced immediate concerns around India’s inflation outlook and current account pressures.

Crypto
Crypto markets traded cautiously higher on Monday as easing concerns around energy prices and improving global risk appetite supported sentiment across digital assets. Bitcoin traded near $77,290, gaining around 0.87% over the past 24 hours. The cryptocurrency’s market capitalisation stood near $1.54 trillion, while daily trading volumes were around $21.7 billion. Market participants continued to view the $76,000 level as an important near-term support zone.

Ethereum traded near $2,107 and remained largely stable during the session. Bitcoin dominance rose to around 59.9%, reflecting continued investor preference for large-cap digital assets while activity across the broader altcoin market remained selective.

US Stock Futures
US stock futures moved sharply higher on Monday as signs of progress in negotiations between the US and Iran triggered a steep decline in oil prices and improved global risk sentiment. Futures linked to the S&P 500 climbed 0.9%, while Nasdaq-100 futures surged 1.4%. Futures tied to the Dow Jones Industrial Average advanced 0.7%.

Investor sentiment improved after reports suggested that Washington and Tehran were moving closer toward an interim agreement that could reopen the Strait of Hormuz and ease concerns over global energy supplies. However, Donald Trump stated that there was “no rush” to finalise a deal, indicating negotiations could continue for some time.

US stock markets remained closed on Monday due to the Memorial Day holiday. traded

US Treasury Notes
US Treasury markets saw subdued activity during Asian trading hours on Monday as cash bond markets remained closed globally for the US Memorial Day holiday. Electronic trading in Treasury futures continued platforms such as CME Globex, with the benchmark 10-year Treasury yield holding relatively steady near 4.558% amid thin liquidity and limited market participation.

Investor focus remained on developments in US-Iran negotiations and the sharp decline in Brent Crude prices, which helped ease immediate inflation concerns after weeks of elevated volatility in global bond markets.

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