Synopsis : Indian equity markets rallied sharply on Monday after reports suggested progress in reopening the Strait of Hormuz, triggering a steep fall in crude oil prices and boosting investor sentiment globally. Banking, auto and infrastructure stocks led the gains, while broader markets also remained firmly positive.
Indian benchmark indices opened strongly higher on May 25, 2026, with the Sensex surging over 900 points and the Nifty reclaiming the 23,900 mark amid easing geopolitical concerns and a sharp correction in global crude oil prices.
The BSE Sensex climbed nearly 905 points to trade around 76,320 during intraday trade, while the NSE Nifty advanced over 255 points to hover near 23,975. The rally was largely driven by optimism surrounding possible reopening of the Strait of Hormuz after reports indicated that the United States and Iran were close to finalising an agreement.
The sharp decline in crude oil prices significantly improved market sentiment. Brent crude futures dropped nearly 5% to around $98 per barrel, while WTI crude slipped below $92 per barrel. Lower oil prices are seen as a major positive for India, helping ease inflation concerns and reducing pressure on the country’s import bill.
Banking and financial stocks led the market rally. HDFC Bank rose more than 2%, while Kotak Mahindra Bank and ICICI Bank also traded firmly in positive territory. Infrastructure major Larsen & Toubro gained over 2.5% during the session.
Auto stocks also witnessed strong buying momentum following the fall in crude prices. Eicher Motors surged more than 5%, while Mahindra & Mahindra, Ashok Leyland and Tata Motors posted gains between 2–3%.
In the broader market, Greenlam Industries emerged as one of the biggest gainers of the day, with shares soaring nearly 19% during intraday trade.
Global markets also remained upbeat. Japan’s Nikkei index crossed the historic 65,000 mark for the first time ever, supported by improving risk appetite across Asian markets. Meanwhile, US markets remained closed on account of Memorial Day.
Market experts believe that if crude prices continue cooling and geopolitical tensions ease further, the Nifty could attempt a breakout towards the 24,000–24,200 range in the near term. Analysts also highlighted that strong Q4 earnings from several companies have continued supporting market sentiment despite persistent foreign institutional investor selling.
According to provisional NSE data, FIIs remained net sellers worth ₹4,440 crore in the previous session, while domestic institutional investors continued providing support with net buying of over ₹6,003 crore.
Disclaimer : This article is for informational and educational purposes only and should not be considered investment advice. Investors should consult certified financial advisors before making investment decisions.
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