Nifty Ends Higher for Second Straight Day; RBI Dividend and Global Relief Lift Sentiment

The Nifty 50 rose by 0.6 per cent, closing just shy of the 25,000 mark, while the Sensex gained 0.56 per cent, settling just under 82,200.

Market Update at 4:00 PM: Indian markets extended gains on Monday, May 26, supported by a record dividend payout from the Reserve Bank of India and easing trade concerns globally. The Nifty 50 rose by 0.6 per cent, closing just shy of the 25,000 mark, while the Sensex gained 0.56 per cent, settling just under 82,200.

A positive shift in global sentiment followed the U.S. President’s decision to defer a proposed 50 per cent tariff on EU imports, which helped reduce trade-related risks. The dollar index hit a one-month low, strengthening the Indian rupee along with other Asian currencies.

The Nifty Auto index stood out with a 1.05 per cent surge, making it the best-performing sector of the day. Bajaj Auto led the charge with a rise of over 2.5 per cent.

The metals sector climbed nearly 1 per cent as the weaker U.S. dollar made commodities more attractive to investors.

Paytm gained 3 per cent after the Supreme Court paused a hefty tax claim against its gaming unit.

Divi’s Labs jumped 3.92 per cent following news of a new global supply agreement.

J.K. Cement advanced 2.17 per cent after reporting robust March-quarter volume growth.

Top Contributors to Nifty Gains:

• ICICI Bank (+20.35 points)
• Mahindra & Mahindra (+17.51 points)
• Larsen & Toubro (+15.98 points)

Main Drags on the Index:

• Kotak Bank (-4.58 points)
• Sun Pharma (-2.19 points)
• Ultratech Cement (-1.78 points)

The Mid-Cap and Small-Cap segments also finished in the green, with gains of 0.67 per cent and 0.37 per cent, respectively. Out of the 17 sectoral indices on the NSE, 9 closed with gains.

Market breadth stayed positive with 1,735 advancing stocks versus 1,173 declines out of a total of 2,982 traded. About 53 stocks hit fresh 52-week highs, while 25 touched their yearly lows. Additionally, 127 stocks hit upper circuits, and 68 were locked in lower circuits.

Market Update at 2:30 PM: The BSE Sensex climbed 1.64 per cent to 82,674, while the NSE Nifty 50 advanced 1.77 per cent to settle at 25,087. After a volatile start, markets gained momentum as investor sentiment improved on hopes of a U.S.-India trade agreement. Optimism grew following former U.S. President Donald Trump's statement that India had proposed a zero-tariff trade deal.

Among the key contributors to the Nifty's upward move, Reliance Industries led the gains with a 0.22 per cent rise, adding 53.77 points to the index. ICICI Bank and Infosys also supported the rally, contributing 33.86 points and 32.95 points, respectively. On the flip side, Asian Paints remained flat with a marginal decline of 0.54 points. Cipla and Kotak Mahindra Bank were among the top draggers, shaving off 2.14 and 3.45 points from the index, respectively, each down by 0.01 per cent.

As of 15 May 2025, 14:09 IST, a total of 2,827 stocks were traded on the NSE. The market breadth remained positive with 1,900 stocks advancing, 856 declining, and 71 remaining unchanged. Notably, 54 stocks touched their 52-week high, while 11 hit a 52-week low. Additionally, 162 stocks were locked in the upper circuit, whereas 20 stocks were stuck in the lower circuit.

Market Update at 12:30 PM: India’s key indices, the NSE Nifty 50 and BSE Sensex, advanced by approximately 0.6 per cent on Monday, driven by improved global trade sentiment and a record dividend payout from the Reserve Bank of India (RBI).

Twelve out of the thirteen sectoral indices ended higher, while the broader market also reflected positive momentum, with both the Nifty Small-cap and Nifty Mid-cap indices climbing around 0.5 per cent.

Investor mood across Asia improved after the U.S. President announced a delay in imposing a 50 per cent tariff on European Union imports, easing global trade concerns.

Meanwhile, the dollar index slipped to a one-month low, boosting the Indian rupee along with other Asian currencies.

Market analysts noted that the RBI’s historic surplus transfer could aid the Indian government in staying on course with its fiscal targets, further lifting market confidence.

On the stock-specific front, Paytm rose 3 per cent after the Supreme Court stayed a Rs 674 crore tax demand on its gaming subsidiary.

Divi’s Laboratories saw a 4 per cent uptick after securing a global pharmaceutical supply agreement, while J.K. Cement surged 5 per cent on the back of strong volume growth reported in the March quarter.

Market Update at 10:20 AM: India's benchmark indices started Monday’s session on a positive note following U.S. President Donald Trump's decision to delay imposing tariffs on the European Union. This move helped ease immediate concerns over global trade tensions.

As of 9:17 a.m. IST, the Nifty 50 climbed 0.63 per cent to 25,006.25, while the BSE Sensex advanced 0.65 per cent to 82,231.26. All 13 key sectoral indices opened in the green. Broader markets also saw gains, with the Nifty Small-cap and Nifty Mid-cap indices both rising around 0.4 per cent.

Trump announced on Sunday that he would postpone the proposed 50 per cent tariffs on EU imports. The extension came after European Commission President Ursula von der Leyen requested more time to finalise negotiations, now scheduled to continue until July 9.

Pre-Market Update at 8:00 AM: Indian stock markets are set for a positive start on Monday, May 26, buoyed by firm global cues. As of 7:33 am, Gift Nifty was trading around 24,940—up 57 points from the previous close—signalling a likely green opening.

Asian markets began the week with mixed cues. Japan’s Nikkei 225 rose 0.49 per cent, whereas Hong Kong’s Hang Seng slipped 0.4 per cent. In the U.S., stock futures edged higher after President Donald Trump deferred proposed tariffs on the European Union, providing some relief to global investors.

Back home, investors will be tracking a series of important developments through the week, including the release of final Q4 corporate results, economic indicators like PMI and GDP data, F&O expiry for the May series, and trends in foreign fund activity.

In a significant update, India has surpassed Japan to become the fourth-largest economy globally, according to NITI Aayog CEO BVR Subrahmanyam. He confirmed that India has reached a USD 4 trillion GDP milestone and could soon outpace Germany to take third place.

The Reserve Bank of India has announced a record surplus transfer of Rs 2.69 lakh crore to the central government for FY2024–25, up 27 per cent from Rs 2.1 lakh crore in FY2023–24.

India’s foreign exchange reserves dropped by USD 4.89 billion to stand at USD 685.73 billion as of the week ending May 16. Despite the decline, reserves are still sufficient to cover approximately 10–12 months of imports.

Market participants will monitor stock-specific action as several companies announce their Q4 numbers today. The list includes General Insurance Corporation of India, Aurobindo Pharma, Sundaram Finance, Fertilisers and Chemicals Travancore, Gillette India, Sumitomo Chemical India, Bayer CropScience, KEC International, Brainbees Solutions, Blue Dart Express, and Schneider Electric Infrastructure.

Foreign Institutional Investors (FIIs) net bought Rs 1,794.59 crore worth of equities on May 23, while Domestic Institutional Investors (DIIs) were also net buyers, adding Rs 299.78 crore.

Indian benchmarks closed with solid gains on Friday. The Sensex surged 769.09 points to end at 81,721.08, and the Nifty 50 rose 243.45 points to close at 24,853.15. A rebound in the latter half of the session—fueled by short-covering—kept the indices in the green despite early volatility. The market ended the week on a positive note despite global concerns surrounding U.S. debt and interest rate stability.

U.S. equities closed in the red on Friday, extending their weekly losses. Renewed trade concerns—after President Trump floated the idea of 50 per cent tariffs on EU imports—dragged sentiment. The Dow Jones fell 256.02 points to 41,603.07, the S&P 500 dropped 39.19 points to 5,802.82, and the Nasdaq Composite lost 188.53 points to end at 18,737.21. Weekly losses stood at 2.47 per cent for the Dow, 2.61 per cent for the S&P 500, and 2.48 per cent for the Nasdaq. However, Trump has extended the tariff deadline to July 9 to allow further discussions with the EU.

Crude prices saw modest gains as tariff concerns eased. Brent crude was up 0.51 per cent at USD 65.11 a barrel, while WTI rose 0.49 per cent to USD 61.83. Meanwhile, gold prices dipped 0.5 per cent to USD 3,339.13 per ounce after a recent rally.

For today, Titagarh Rail Systems, Dixon Technologies, RBL Bank and Mannapuram Finance continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.