The key equity indices bounced back with strong gains today, breaking a two-day losing streak. Investor sentiment was lifted as geopolitical tensions eased following a ceasefire agreement between India and Pakistan, bringing an end to days of missile and drone attacks. Additionally, optimism surrounding the progress of the US-China trade deal further fueled market momentum.
With geopolitical concerns subsiding, investors’ attention may now shift towards domestic economic indicators such as CPI and wholesale price inflation data, set to be announced later this week. The Nifty settled above the 24,900 level, reflecting broad-based positive sentiment in the market.
In the barometer index, the S&P BSE Sensex, soared 2,975.43 points or 3.74% to 82,429.90. The Nifty 50 index galloped 916.70 points or 3.82% to 24,924.70.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index surged 3.85% and the S&P BSE Small-Cap index zoomed 4.18%. The market breadth was strong.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tumbled 14.97% to 18.39.
Among the sectoral indices, the Nifty IT index (up 6.70%), the Realty index (up 5.93%) and the Nifty Metal index (up 5.86%) outperformed the Nifty 50 index.
Meanwhile, the Nifty Pharma index (up 0.15%), the Nifty FMCG Index (up 2.64%) and the Nifty Oil & Gas index (up 3.13%) underperformed the Nifty 50 index.
IMD Monsoon Forecast:
The India Meteorological Department (IMD) has announced that the southwest monsoon is expected to hit Kerala on May 27, earlier than the usual June 1 onset. If it does, this would mark the earliest monsoon arrival since 2009. Kerala’s onset signals the official start of the monsoon season across India, which typically covers the country by July 8 and retreats between September 17 and October 15.
India and Pakistan Ceasefire:
Tensions between India and Pakistan took a much-needed breather over the weekend as both nations agreed to a ceasefire following days of escalating the worst the region has seen in nearly three decades. The truce came after a dramatic round of late-night diplomacy led by the United States.
"After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a FULL AND IMMEDIATE CEASEFIRE," President Donald Trump declared on Saturday.
The ceasefire, while fragile, appeared to be holding steady over the last 24 hours. However, both sides traded accusations of minor violations.
Economy:
India's forex reserves dropped $2.065 billion to $686.064 billion for the week ended May 2, the RBI said on Friday.
For the week ended May 2, foreign currency assets, a major component of the reserves, increased $514 million to $581.177 billion, the data released on Friday showed.
Gold reserves decreased $2.545 million to $81.82 billion during the week, the RBI said.
The special drawing rights were down $30 million to $18.558 billion, the apex bank said.
India's reserve position with the IMF was also down $3 million at $4.509 billion in the reporting week, the apex bank data showed.
Numbers to Track:
MCX Gold futures for the 5 June 2025 settlement dropped 4.07% to Rs 92,588.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 1.46% to 101.80.
The United States 10-year bond yield advanced 1.65% to 4.447.
In the commodities market, Brent crude for July 2025 settlement added $1.78 cents or 2.79% to $65.69 a barrel.
Global Markets:
The US Dow Jones index futures were currently up by 938 points, indicating a strong start for US equities today.
European market advanced on Monday while Asian stocks ended higher after China and the U.S. announced a trade deal, including a 90-day pause on tariffs and a drop in reciprocal tariffs by 115 percentage points.
Both Washington and Beijing struck a hopeful tone. U.S. officials hinted at a potential deal to narrow the trade deficit, while Chinese leaders said the two sides had reached an "important consensus"—diplomatic speak for “things went better than expected.”
U.S. Treasury Secretary Scott Bessent called the discussions "a great deal of productivity," and Chinese Vice Premier He Lifeng added that a joint statement—one packed with "good news for the world"—was slated for release on Monday.
This diplomatic thaw follows a red-ink Friday on Wall Street, where the Dow shed 0.29%, the S&P 500 dipped 0.07%, and the Nasdaq barely moved, closing flat at 17,928.92.
Back in D.C., President Trump made headlines of his own. On Sunday, he announced plans to sign what he described as “one of the most consequential executive orders in our country’s history.” The executive order, expected at 9:00 a.m. Monday, aims to slash prescription drug prices by as much as 80%. Trump added that pharma prices could “rise throughout the world” as part of his plan to level the playing field for American consumers.
Stocks in Spotlight:
Dr. Reddy’s Laboratories jumped 3.26% after the company reported a consolidated net profit of Rs 1,594 crore for the quarter ended March 2025 (Q4FY25), marking a 22% year-on-year increase from Rs 1,307 crore in the same period last year. Revenue from operations rose 20% year-on-year to Rs 8,506 crore, compared to Rs 7,083 crore in Q4FY24.
Eveready Industries India added 3.31% after the company’s consolidated net profit jumped 29.4% to Rs 10.42 crore on a 6.5% increase in revenue from operations to Rs 299.04 crore in Q4 FY25 over Q4 FY24.
Triveni Turbine surged 8.76% after the company's consolidated net profit jumped 24.14% to Rs 94.60 crore on 17.44% rise in revenue from operations to Rs 538 crore in Q4 FY25 over Q4 FY24.
Ceinsys Tech was locked in 5% upper circuit after the company announced that it has received a letter of award (LoA) for a three year project from Mumbai Metropolitan Region Development Authority (MMRDA). The total value of the above contract is Rs 5.50 crore.
Aarti Pharmalabs rose 3.48% after the company reported a 35.38% increase in consolidated net profit to Rs 88.34 crore in Q4 FY25 as against Rs 65.25 crore posted in Q4 FY24. Revenue from operations jumped 11.46% YoY to Rs 563.78 crore in the quarter ended 31 March 2025.
Navin Fluorine International tanked 3.23%. The company’s consolidated net profit jumped 34.95% to Rs 94.98 crore in Q4 FY25, compared with Rs 70.38 crore in Q4 FY24. Revenue from operations rallied 16.44% year on year to Rs 700.94 crore in Q4 FY25, compared with Rs 601.95 crore in Q4 FY24.
Adani Power zoomed 6.33% after the firm said it has secured a contract to supply 1,500 MW of thermal power to Uttar Pradesh at a levelized tariff of Rs 5.383 per unit, emerging as the lowest bidder in a competitive tender process.
Bajaj Electricals soared 15.53% after the company reported a consolidated net profit of Rs 59.05 crore in Q4 FY25, which is two times the PAT of Rs 29.31 crore recorded in Q4 FY24. Total revenue from operations increased by 6.51% year on year (YoY) to Rs 1,265.47 crore during the period under review.
Venkys (India) slipped 1.58% after the company reported 60.31% decline in net profit to Rs 13.30 crore in Q4 FY25 as against a net profit of Rs 33.51 crore recorded in Q4 FY24. Revenue from operations decreased 5.89% YoY to Rs 843.16 crore in the quarter ended 31 March 2025.
Reliance Power surged 11.25% after the company reported a consolidated net profit of Rs 125.60 crore for Q4 FY25, marking a significant turnaround from a net loss of Rs 397.56 crore in Q4 FY24. Revenue from operations marginally fell 0.93% YoY to Rs 1,978.01 crore in Q4 FY25, compared with Rs 1,996.65 crore in the previous year.
Tourism Finance Corporation of India (TFCI) rallied 4.30% after the company’s standalone net profit jumped 48.04% to Rs 30.20 crore in Q4 FY25 as compared with Rs 20.40 crore in Q4 FY24. Total income jumped 20.49% year on year (YoY) to Rs 69.45 crore during the quarter ended 31st March 2025.
Atul Auto jumped 6.69% after the company’s consolidated net profit surged 34.14% to Rs 7.15 crore in Q4 FY25 as against Rs 5.33 crore posted in Q4 FY24. Total revenue from operations grew by 31.74% year-on-year (YoY) to Rs 210.98 crore in the quarter ended 31 March 2025.
Magellanic Cloud jumped 9.87% after the company said that its subsidiary Scandron has received an order for supply of drones. The basic value of the aforementioned contract is Rs 5 crore.
Relaxo Footwears gained 4.14%. The company’s net profit decreased 8.42% to Rs 56.22 crore on 6.96% fall in revenue from operations to Rs 695.15 crore in Q4 FY25 over Q4 FY24.