CHENNAI: Indian equity benchmarks closed higher on Monday (May 26), tracking strong global cues and sectoral support across Auto, IT, and Metal stocks. Positive sentiment was reinforced after US President Donald Trump announced an extension of the trade talks deadline with the European Union, easing immediate global trade concerns and lifting investor confidence.
BSE Sensex today settled 455.3 points or 0.56% up to close at 82,176.45, after hitting an intraday high of 700 points at 82,492.
NSE Nifty50 advanced 148 points or 0.60% to end at 25,001.15, reclaiming the psychological 25,000-mark for the first time in over two weeks.
Broader Markets:
The broader market also registered gains. Nifty Midcap 100 going up 0.67% and Nifty Smallcap 100 rising 0.37%.
These gains reflect continued investor interest in mid- and small-cap counters amid improving liquidity conditions and favorable earnings expectations.
Sectoral Overview:
All sectoral indices on the NSE also ended in the green with Nifty Auto up 1.05%, Nifty IT high 1.02%, and Nifty FMCG moving up 0.97%.
The rally in Auto stocks was supported by robust monthly dispatch expectations and hopes of demand revival in rural markets. IT stocks gained following positive commentary from US-based tech majors and easing of global trade concerns. FMCG stocks remained resilient as investors sought quality defensives amid ongoing market volatility.
Out of the 30 Sensex stocks, 22 advanced, with key contributors including, Mahindra & Mahindra (2.17%), HCL Technologies, Tata Motors, Nestle India, ITC, and Hindustan Unilever.
These gains were driven by sectoral strength and favorable earnings outlooks.
While the top losers, despite broad gains, were Eternal (-4.55%), Ultratech Cement, Power Grid, Kotak Mahindra Bank, NTPC, and Tata Steel.
Losses in the select stocks were attributed to profit booking, mixed quarterly results, and muted management guidance.
Market Volatility:
India VIX, the volatility index, rose 4.66% to 18.08, indicating rising hedging activity ahead of key macroeconomic events and ongoing election-related uncertainties.
Market Outlook:
Investor sentiment remains cautiously optimistic with global trade tensions temporarily eased and earnings tailwinds across key sectors. However, upcoming domestic GDP data and political developments ahead of the June policy review by the Reserve Bank of India may keep volatility elevated in the near term.