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Bulls hold tight grip over Dalal Street in early noon deals
May-25-2026

Bulls were holding a tight grip over the Dalal Street in early afternoon session, with both Sensex and Nifty sustaining their gains above a percent, tracking positive cues from other Asian markets along with strong buying at Banking, Auto and Oil & Gas counters, amid optimism about a potential peace deal between the US and Iran to see a permanent end to the Middle East conflict after senior US officials indicated over the weekend that both countries were nearing an agreement that could reopen the Strait of Hormuz. Besides, Commerce and Industry Minister Piyush Goyal has said that the country’s exports recorded healthy growth during the first three weeks of May. He also said that while the world is going through a turmoil, India is relentlessly rising on global stage as it is recording health growth in exports and foreign direct investment (FDI).

On the global front, Asian markets were trading in green, even after Singapore's consumer price inflation held steady in April as higher private transport and accommodation inflation was offset by lower core inflation. The consumer price index, or CPI, climbed 1.8 percent year-over-year in April, the same as in March, which was the highest inflation since September 2024. The expected increase was 2.0 percent.

Back home, capital goods industry stocks were in watch, as Crisil Ratings in its latest report has said that the capital goods industry is likely to witness a revenue growth of 12-14% this fiscal which will be similar to last fiscal, on account of sustained government spending, steady capacity expansion in power, mining, oil and gas, metal and auto-linked sectors, and increasing opportunities from emerging segments such as data centres and electric vehicle (EV) infrastructure.

The BSE Sensex is currently trading at 76258.03, up by 842.68 points or 1.12% after trading in a range of 76097.02 and 76386.71. There were 27 stocks advancing against 3 stocks declining on the index.

The top gaining sectoral indices on the BSE were Bankex up by 1.68%, Auto up by 1.61%, Oil & Gas up by 1.53%, Telecom up by 1.52% and Industrials up by 1.36%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.61%, Eternal up by 2.38%, HDFC Bank up by 2.25%, Bajaj Finserv up by 2.23% and Larsen & Toubro up by 2.16%. On the flip side, Sun Pharma down by 0.44%, TCS down by 0.32% and Infosys down by 0.03% were the top losers.

Meanwhile, at a time when West Asia conflict squeezing the shipping routes and trade flows, an article in the Reserve Bank of India (RBI) Bulletin has said the supply-side pressures weighed on India’s near-term outlook. It added that constricted shipping routes and trade flows amid the conflict have increased supply chain pressures to their highest levels since 2022. Further, the prices of commodities for which the Strait of Hormuz is a critical transit route remained elevated in April and early May. The base metal prices, including aluminium, zinc and nickel, rose due to supply disruptions and higher fuel costs.

The article also pointed that the pass-through to domestic prices needs to be monitored despite of the headline inflation remaining firm within the tolerance band. In April, the retail inflation rose to 3.5%, driven mainly by food inflation, while core inflation remained steady. Besides, the article said that the financial conditions, crude oil prices and capital flows continue to pose challenges to the external sector outlook. It noted that the merchandise trade deficit widened in April 2026 over March 2026 primarily on account of crude oil and gold imports.

However, the article said that the robust services exports, positive net FDI flows, foreign exchange reserve buffers and a number of proactive policy measures undertaken by the government and the Reserve Bank are likely to cushion the Indian economy against external headwinds. It added that economic activity showed a mixed trend in April, as evidenced by several high-frequency indicators such as fuel consumption, trade, and logistics. Further, e-way bills continued to achieve double-digit growth backed by GST rate rationalisation, while higher temperatures led to a sharp increase in electricity demand. The views expressed in the Bulletin article are those of the authors and do not represent the views of the RBI.

The CNX Nifty is currently trading at 23958.55, up by 239.25 points or 1.01% after trading in a range of 23922.85 and 23995.90. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 5.33%, Adani Enterprises up by 3.04%, Bajaj Finance up by 2.59%, Tata Motors Passenger up by 2.50% and Shriram Finance up by 2.50%. On the flip side, Max Healthcare Inst down by 2.27%, Hindalco down by 2.13%, ONGC down by 1.69%, Bajaj Auto down by 0.53% and Sun Pharma down by 0.39% were the top losers.

Asian markets were trading in green; Taiwan Weighted added 1376.43 points or 3.15% to 43,644.40, Nikkei 225 surged 1800.93 points or 2.76% to 65,140.00, Jakarta Composite gained 62.01 points or 1.01% to 6,224.06, Shanghai Composite strengthened 39.67 points or 0.96% to 4,152.57 and Straits Times rose 5.07 points or 0.1% to 5,073.22.
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