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Key gauges end higher on US-Iran deal hopes
May-25-2026

Indian equity benchmarks ended on strong note on Monday, driven by a sharp correction in crude oil prices and a rally in global markets amid improving sentiment surrounding the US-Iran negotiations. An appreciating rupee against the US dollar and intense buying in Banking, Telecom and Auto stocks also bolstered sentiment. 

Some of the important factors in trade: 

India’s exports record healthy growth during first three weeks of May: Commerce and Industry Minister Piyush Goyal has said that India’s exports have recorded healthy growth during the first three weeks of May. 

India, US looking at firming up trade deal soon: US Secretary of State Marco Rubio has said that India and the US are poised to soon firm up the much-awaited trade agreement that will be both beneficial and sustainable and will advance the mutual interests of both nations. 

India in better position to manage retail inflation, RBI must hold rates: ASSOCHAM has said that India is better placed to manage retail inflation among the top 10 economies, amidst the ongoing disruptions caused by the West Asia conflict. It further suggested the RBI to maintain the status quo on the repo rate. 

Supply-side pressures weigh on India’s near-term outlook amid West Asia conflict: 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. 

Global front: European markets were trading higher, while Asian markets settled mostly higher as hopes for a U.S.-Iran peace deal sent oil prices sharply lower and eased inflationary concerns.   

Finally, the BSE Sensex rose 1073.61 points or 1.42% to 76,488.96 and the CNX Nifty was up by 312.40 points or 1.32% to 24,031.70. 

The BSE Sensex touched high and low of 76,559.07 and 76,097.02, respectively. There were 26 stocks advancing against 4 stocks declining on the index. 

The top gaining sectoral indices on the BSE were Bankex up by 2.27%, Telecom up by 1.89%, Auto up by 1.76%, Utilities up by 1.54% and Oil & Gas up by 1.51%, while FMCG down by 0.06% was the top losing index on BSE. 

The top gainers on the Sensex were Bajaj Finance up by 2.80%, Larsen & Toubro up by 2.71%, HDFC Bank up by 2.67%, Eternal up by 2.40% and Bajaj Finserv up by 2.37%. On the flip side, Infosys down by 0.49%, TCS down by 0.41%, Sun Pharma down by 0.21% and Hindustan Unilever down by 0.21% were the top losers.

Meanwhile, expressing optimism about India’s exports growth prospects, 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). Exports rose by 13.78% to $43.56 billion in April, the highest monthly outbound shipments in more than four years, driven by petroleum products amid a surge in crude oil prices, but trade deficit widened to a three-month high of $28.38 billion due to an uptick in imports. For May, the commerce ministry will officially release the export and import data on June 15.

The minister said that FDI during 2025-26 has touched an all-time high of $95 billion, an increase of 17% year on year. He said this growth will continue in the years to come given the favour that India enjoys amongst global investors as a preferred investment destination. He added ‘The government has absorbed significant amounts of costs, particularly for the farmers in terms of elevated fertiliser prices, which have not been passed on to farmers, but the burden has been taken fully by the central government’. He said that the government is also continually introducing initiatives to support economic growth. The high growth in FDI reflects global investors' appetite for India.

He informed that the ministry has held an inter-ministerial meeting with industry associations on ways to boost domestic manufacturing. The ministry has received suggestions from sectors such as capital goods, optical fibres and chemicals. In the meeting, he said the ministry has shared import data and data on sectors with export potential. He said ‘We will put data in the public domain also...as opportunity will pull investment’, and added that from time to time, plans are made to provide incentives to different sectors as per their needs.

CNX Nifty touched high and low of 24,054.45 and 23,922.85, respectively. There were 42 stocks advancing against 8 stocks declining on the index. 

The top gainers on Nifty were Eicher Motors up by 6.45%, Adani Enterprises up by 4.77%, Bajaj Finance up by 2.99%, Tata Motors Passenger up by 2.86% and Larsen & Toubro up by 2.76%. On the flip side, Max Healthcare Inst down by 2.21%, ONGC down by 1.76%, Hindalco down by 0.92%, Infosys down by 0.55% and Bajaj Auto down by 0.43% were the top losers. 

European markets were trading higher; Germany’s DAX gained 363.62 points or 1.46% to 25,252.18 and France’s CAC rose 131.01 points or 1.62% to 8,246.76.

Asian markets settled mostly higher on Monday, tracking Wall Street’s gains overnight amid hopes of easing tensions in the Middle East. Signs of progress in talks to end the nearly three-month-long US-Iran war sent crude oil prices sharply lower, helping to ease inflationary pressures and lower expectations for further interest rate hikes. However, the two sides remain at odds over key issues, including blockades on the critical waterway, Tehran's nuclear program and the release of a $12 billion frozen assets held in Qatar. Chinese shares gained, supported by strong performances in chipmakers and AI-related technology stocks. Markets in Hong Kong and South Korea were closed for holidays. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,152.57

39.67

0.96

Hang Seng

--

--

--

Jakarta Composite

6,206.35

44.30

0.71

KLSE Composite

1,708.50

-4.17

-0.24

Nikkei 225

65,158.19

1,819.12

2.87

Straits Times

5,070.55

2.40

0.05

KOSPI Composite

--

--

--

Taiwan Weighted

43,644.40

1,376.43

3.26
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