Indian stock markets traded strongly higher on Monday, May 25, continuing gains for the second straight session. Positive global cues, easing geopolitical tensions, and a sharp fall in crude oil prices lifted investor confidence.
Around 9:30 AM, the BSE Sensex surged over 900 points to 76,318, while the NSE Nifty50 climbed nearly 263 points to 23,982.
During intraday trade, the Sensex touched a high of 76,335, up 919 points or 1.20%. Similarly, the Nifty hit an intraday high of 23,989, rising 270 points or 1.12%.
The rally was broad-based as midcap and smallcap stocks also moved higher.
Among sectors, all major indices traded in the green except IT stocks.
Nifty Auto emerged as the top sectoral gainer, rising nearly 2.5%. Banking, financial services, PSU banks, realty, and oil & gas stocks also advanced between 1% and 2%.
Meanwhile, India VIX, which measures market volatility, dropped more than 6% to 16.68, indicating lower market fear.
The strong rally added more than ₹5.15 trillion to investor wealth.
The total market capitalisation of all BSE-listed companies increased to ₹467.40 trillion from ₹462.25 trillion in the previous session.
Investor sentiment improved after reports suggested progress in peace talks involving the US and Iran.
US President Donald Trump said a deal with Tehran was “mostly finalised,” raising hopes that tensions in the region could ease soon.
Markets also reacted positively to expectations that the Strait of Hormuz shipping route may reopen, helping stabilise global oil supplies.
Crude oil prices fell sharply amid hopes of a possible peace agreement.
Lower crude prices are positive for India as they help reduce import costs and inflation pressure.
Shares of state-run oil marketing companies saw strong buying interest after fuel prices were raised again.
Stocks such as Hindustan Petroleum Corporation, Bharat Petroleum, and Indian Oil Corporation gained more than 4% each.
This was the fourth fuel price increase since May 15, taking the total rise in petrol and diesel prices to around ₹7.5 per litre.
In Delhi, petrol prices crossed ₹100 per litre again, while diesel prices also moved higher.
Asian markets rallied sharply on Monday, supporting sentiment in Indian equities.
Japan’s Nikkei 225 index crossed the 65,000 mark for the first time and touched a record high during trading.
The rally came as investors cheered hopes of easing geopolitical tensions and improving energy supply conditions.
The sharp fall in India VIX signalled improving investor confidence and reduced fear in the market.
A decline in volatility generally supports buying activity across equities.
Indian markets witnessed a strong rebound on May 25 as global risk sentiment improved significantly. Falling crude oil prices, easing geopolitical worries, strong Asian markets, and gains in oil marketing and auto stocks supported the rally. Investors will now closely watch further developments in the US-Iran talks and global oil prices for market direction.
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Disclaimer:This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 25, 2026, 11:45 AM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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