HIGHLIGHTS
- India offered US a deal: Basically zero tariffs, says Donald Trump
- Remsons Industries shares rally 15% after bagging over ₹300 crore orders from Stellantis
- Kalpataru Projects shares gain 4% after bagging two orders worth ₹23.72 billion
- SEBI probes Yes Bank disclosures regarding Sumitomo Mitsui Banking Corporation deal

After a slow start, Indian equities surged on Thursday, led by broad-based buying and a sharp rebound mid-session. Benchmark indices closed at their highest levels in seven months.

The Nifty50 reclaimed the psychological 25,000 mark after 141 sessions, riding on renewed momentum across sectors and investor optimism amid easing geopolitical concerns. The BSE Sensex also ended firmly in the green, with notable gains in large-cap and mid-tier names.

The broader market outperformed headline indices, with the BSE Midcap index up 0.6% and the Smallcap index advancing 0.9%, reflecting sustained retail participation and bottom-up stock selection.

Sectoral Performance
All sectoral indices closed in the green, showcasing the depth of Thursday’s rally. Realty, oil & gas, metal, media, IT, auto, and banking stocks gained between 1–2%, signaling strong buying interest across cyclical and defensive pockets.

Among the top Nifty gainers were Hero MotoCorp, JSW Steel, Trent, Tata Motors, and HCLTech, all posting robust intraday performances.

Defence stocks extended their rally for the fifth consecutive session, fuelled by consistent buying interest amid policy support for indigenous manufacturing. Cochin Shipyard rose over 7% on the back of strong Q4 earnings, further lifting sentiment in the defence space.

Top Gainers	% Change
NIFTY AUTO	1.92%
NIFTY REALTY	1.92%
NIFTY METAL	1.74%
NIFTY MEDIA	1.59%
NIFTY FINANCIAL SERVICES	1.29%

Indian government bond prices edged higher on Thursday, driven by robust demand following the Reserve Bank of India’s  bond purchase and a recovery in US Treasury prices.

The yield on the newly issued 10-year benchmark, 6.33% government bond maturing in 2035 softened slightly to 6.2302%, down from its previous close of 6.2398%. 

A key driver of the day's rally was the RBI’s open market operation, where it bought ₹250 billion worth of gilts. The cut-off yields in the OMO came in lower than prevailing market rates, signalling the central bank’s accommodative stance and bolstering investor confidence.

Additionally, US Treasuries rebounded in the Asian trading session after five consecutive days of losses, offering a positive global cue for domestic bonds. The uptick in US bond prices eased fears of a sharp rise in global yields, which often impacts Indian debt markets via foreign fund flows.

Many traders, who had sold securities to the RBI during the purchase window, returned to the market to replenish their portfolios, adding to the demand momentum.

Tenure	Today	Previous
10-year Gilt	6.23%	6.24%
5-year gilt	5.96%	5.99%
5-year OIS	5.68%	5.66%

 The Indian Rupee weakened on Thursday, breaking a three-day winning streak despite supportive cues from falling crude oil prices and a softening US dollar index.

The domestic currency ended the session at 85.55 per US dollar, down 28 paise from Wednesday’s close of 85.27, reflecting fresh pressure amid persistent volatility over one month. So far in May, the rupee has depreciated by about 1.4%, weighed by external uncertainties and cautious sentiment around global risk appetite.

Crude oil prices, a major driver of India’s trade balance and inflation outlook, declined sharply during the session. Brent crude futures dropped 3.80%, following reports that the US and Iran may be nearing a nuclear agreement, which could eventually bring more Iranian oil to the market and ease global supply concerns. A continued fall in oil prices typically supports the rupee by reducing India’s import bill and current account pressure.

Unit	Today	Previous
Dollar/Rupee	85.55	85.27
Dollar Index	100.78	100.41
1-year Dollar/rupee premium (%)	2.09%	2.12%

OUTLOOK
Equities are expected to build on recent gains with the Nifty reclaiming the 25,000 mark, signalling renewed bullish momentum. Mid- and small-cap stocks will likely outperform on improving breadth, while defence and capital goods could stay in favour on the back of supportive policies and strong earnings. However, some profit-booking may emerge after the recent sharp rallies.

Government bond yields may trend lower in the near term, following Thursday’s supportive RBI open market purchase. The 10-year benchmark yield could see further softening as inflation expectations stay anchored.  The Indian rupee may remain volatile but broadly rangebound. Despite Thursday’s decline, falling crude oil prices and a weaker dollar index could lend near-term support.

Key Events & Data Due Friday:

Economic Data

• Japan Jan-Mar GDP data
• Japan March Industrial Production data
• Eurozone March Trade Balance data
• India weekly FX Reserves
• US April Housing Starts data

Corporate Actions

• Jan-Mar earnings: Asian Energy Services, Bharat Bijlee, Bharat Heavy Electricals, Centrum Capital, CREDITACCESS GRAMEEN, Delhivery, Dhampur Sugar Mills, Dhanuka Agritech, EIH Associated Hotels, Emami, Entertainment Network (India), Eureka Forbes, Galaxy Surfactants, GIC Housing Finance, Gujarat Alkalies and Chemicals, HEC Infra Projects, Heritage Foods, Highways Infrastructure Trust, Hyundai Motor India, India Glycols, Indraprastha Medical Corporation, IOL Chemicals and Pharmaceuticals, Jubilant Pharmova, Matrimony.Com, Mukand, Nesco, Nucleus Software Exports, Reliance Infrastructure, Repco Home Finance, Shipping Corporation Of India, Stallion India Fluorochemicals, Sterlite Technologies, TV Today Network, Zodiac Energy, 

Policy Events

• BoJ Board Member Nakamura Speaks 
• ECB's Lane Speaks