The key equity benchmarks closed sharply higher today, notching up gains for the second straight session. The rally was fueled by the Reserve Bank of India's record dividend payout, which is likely to ease fiscal stress. Investor sentiment was further lifted by news of India becoming the world’s fourth-largest economy. However, the upside was somewhat capped amid concerns over potential geopolitical tensions and trade-related risks from the US. The Nifty ended just above the 25,000 mark, with auto, IT, and FMCG stocks leading the charge.
The S&P BSE Sensex added 455.37 points or 0.56% to 82,176.45. The Nifty 50 index advanced 148 points or 0.60% to 25,001.15. In two trading sessions, the Sensex and Nifty have jumped 1.51% and 1.59%, respectively.
Mahindra & Mahindra (up 2.17%), Larsen & Toubro (up 1.35%) and ICICI Bank (up 0.73%) boosted the indices.
In the broader market, the S&P BSE Mid-Cap index added 0.56% and the S&P BSE Small-Cap index jumped 0.48%.
The market breadth was positive. On the BSE, 2,297 shares rose and 1,773 shares fell. A total of 197 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, up 4.29% to 18.02.
Economy:
The Reserve Bank of India (RBI) on Friday handed the government a whopping Rs 2.68 lakh crore in surplus for FY25, 27% more than last year and even higher than what the Union Budget had estimated. Analysts suggest that this additional amount could support the government’s objective of reducing the fiscal deficit to 4.4% for the current financial year.
Meanwhile, India has overtaken Japan to become the world's fourth-largest economy, NITI Aayog Chief Executive Officer (CEO) BVR Subrahmanyam said, citing data by the International Monetary Fund at a press conference of the 10th NITI Aayog Governing Council Meeting on Viksit Rajya for Viksit Bharat 2047. He further stated that India may soon surpass Germany and become the third-largest economy in the world.
Numbers to Track:
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.0800 compared with its close of 85.4500 during the previous trading session.
MCX Gold futures for 5 June 2025 settlement shed 0.79% to Rs 95,657.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% to 99.
The United States 10-year bond yield shed 0.62% to 4.541.
In the commodities market, Brent crude for July 2025 settlement fell 1 cents or 0.02% to $64.79 a barrel.
Global Markets:
The US Dow Jones index futures were currently up by 441 points, signaling a strong opening for US stocks in the next session.
Most European markets rose on Monday after U.S. President Donald Trump softened his stance on tariff threats against European imports. Over the weekend, Trump initially proposed a 50% tariff on EU goods, but by Sunday, he announced a delay in implementation until July 9, easing immediate investor concerns.
Asian markets ended mixed, reflecting Wall Street’s losses from Friday. While Japanese stocks extended their winning streak, tech shares across the region, especially Apple suppliers, took a hit. Trump's comments about a potential 25% tariff on all iPhones and smartphones manufactured overseas rattled sentiment in Asia’s tech sector, where many firms are deeply embedded in Apple’s supply chain.
Adding to the trade tensions, Japanese officials are set to visit Washington in early June for a fourth round of bilateral negotiations. Japan, however, continues to push for the complete removal of U.S. tariffs on its exports.
U.S. markets closed lower on Friday as Trump’s renewed trade threats spooked investors. The Dow fell 0.61%, the S&P 500 slipped 0.67%, and the Nasdaq dropped 1%.
In a post on Truth Social, Trump stated that he would recommend a 50% tariff on all EU imports starting June 1, citing a lack of progress in trade negotiations. He wrote, "The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with," Trump said on Truth Social social media site. "Our discussions with them are going nowhere!"
In a notable escalation, Trump said iPhones sold in the U.S. must be made domestically or face a 25% import tariff. This is the first time in 2025 that a single company has been directly targeted in U.S. trade policy. Apple shares dropped over 3% in premarket trading, dragging down the broader tech sector.
Stocks in Spotlight:
Eternal (formerly Zomato) tumbled 4.51% after reports suggested potential passive outflows of up to $840 million, with MSCI and FTSE Russell expected to lower the stock’s weight in their global indices.
Tata Motors rose 1.52% after U.S. President Donald Trump delayed the proposed 50% tariff on EU imports to July 9. The move provided relief to its subsidiary Jaguar Land Rover, which had paused U.S. shipments last month due to trade uncertainty.
JSW Steel jumped 2.31% after the Supreme Court reportedly allowed it to file a review petition against the scrapping of its Rs 19,300 crore resolution plan for Bhushan Power and Steel Ltd (BPSL). According to the media reports, the court also put BPSL's liquidation on hold, giving JSW temporary breathing room. Meanwhile, on a consolidated basis, net profit of JSW Steel rose 15.70% to Rs 1503 crore while gross sales declined 2.86% to Rs 44341 crore in Q4 March 2025 over Q4 March 2024.
NTPC shed 0.32%. The company has reported 23.4% increase in consolidated net profit to Rs 7,611.22 crore on a 4.6% rise in net sales to Rs 49,833.70 crore in Q4 FY25 as compared with Q4 FY24.
Balkrishna Industries dropped 6.30% after the company's standalone net profit fell 24.70% to Rs 362.09 crore while net sales rose 2.75% to Rs 2,746.59 crore in Q4 March 2025 over Q4 March 2024.
RateGain Travel Technologies rose 3.93% after the company's consolidated net profit rose 9.6% to Rs 54.81 crore while net sales increased 1.9% to Rs 260.69 crore in Q4 March 2025 over Q4 March 2024.
Indigo Paints added 1.50% after the company’s consolidated net profit rose 5.99% to Rs 56.90 crore in Q4 FY25 as against Rs 53.68 crore in Q4 FY24.
GE Vernova T&D India hit an upper circuit of 10% after the company’s standalone net profit surged 181.3% to Rs 186.50 crore on a 26.15% jump in revenue from operations to Rs 1,152.54 crore in Q4 FY25 over Q4 FY24.
Ruchira Papers surged 8.56% after the company’s standalone net profit surged 90.87% to Rs 18.40 crore on a 1.04% rise in revenue from operations to Rs 161.68 crore in Q4 FY25 over Q4 FY24.
Narayana Hrudayalaya added 3.11% after the company reported a 3.41% rise in consolidated net profit to Rs 197.21 crore on an 18.39% increase in revenue from operations to Rs 1,475.44 crore in Q4 FY25 over Q4 FY24.
Anupam Rasayan India rallied 5.24% after the company's consolidated net profit surged 44.19% to Rs 44.57 crore on a 24.72% jump in revenue from operations to Rs 500.16 crore in Q4 FY25 over Q4 FY24.
IPO Update:
The initial public offer (IPO) of Schloss Bangalore received bids for 28,61,678 shares as against 4,66,10,169 shares on offer, according to stock exchange data at 16:45 IST on Monday (26 May 2025). The issue was subscribed 0.06 times.
The issue opened for bidding on Monday (26 May 2025) and it will close on Wednesday (28 May 2025). The price band of the IPO is fixed between Rs 413 and 435 per share. An investor can bid for a minimum of 34 equity shares and in multiples thereof.
Aegis Vopak Terminals' IPO received bids for 1,77,49,179 shares as against 6,90,58,296 shares on offer, according to stock exchange data at 16:45 IST on Monday (26 May 2025). The issue was subscribed 0.26 times.
The issue opened for bidding on Monday (26 May 2025) and it will close on Wednesday (28 May 2025). The price band of the IPO is fixed between Rs 223 and 235 per share. An investor can bid for a minimum of 63 equity shares and in multiples thereof.