MARKET OPENS ON FIRM NOTE; BREADTH STRONG

Published on May 25, 2026 09:36

The domestic equity indices opened on a strong note in early trade on Monday, tracking a sharp fall in crude oil prices amid hopes of progress in U.S.�Iran negotiations and the possibility of an eventual deal between the two sides. Improved global risk sentiment and easing energy market concerns also supported investor confidence.

The Nifty traded above the 23,950 mark. All the sectoral indices are traded in green on the NSE with Auto, PSU bank and Oil & gas shares gaining the most.

At 09:30 IST, the barometer index, the S&P BSE Sensex, jumped 860.55 points or 1.14% to 76,275.90. The Nifty 50 index zoomed 252.95 points or 1.06% to 23,980.55.

The broader market, the BSE 150 MidCap Index added 0.88% and the BSE 250 SmallCap Index jumped 1.02%.

The market breadth was strong. On the BSE, 2,479 shares rose and 864 shares fell. A total of 193 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, tanked 4.91% to 17.03.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,440.47 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 6,003.53 crore in the Indian equity market on 22 May 2026, provisional data showed.

Fuel prices hiked for fourth time in 10 days:

Petrol and diesel prices were raised again on Monday, May 25, 2026, marking the fourth increase in fuel rates within a span of 10 days. State-run oil marketing companies increased prices by an average of Rs 2.80 per litre across the country, pushing retail fuel rates to fresh highs in major metros.

Following the latest revision, petrol in Delhi is now priced at Rs 102.12 per litre, while diesel costs Rs 95.20 per litre. In Mumbai, petrol prices climbed to Rs 111.21 per litre and diesel to Rs 97.83 per litre. Kolkata recorded petrol prices at Rs 113.51 per litre and diesel at Rs 99.82 per litre, while in Chennai, petrol and diesel are retailing at Rs 107.77 and Rs 99.55 per litre, respectively.

The latest hike comes after oil companies resumed daily fuel price revisions on May 15 following a four-year freeze. Petrol and diesel prices were first increased by Rs 3 per litre on May 15, followed by hikes of 90 paise each on May 19 and May 23. With Monday�s revision, cumulative increases in fuel prices have now reached nearly Rs 7.5 per litre in less than two weeks.

The sharp rise in fuel prices is expected to add pressure on transportation and logistics costs, raising concerns over a broader impact on retail inflation and household expenses.

Stocks in Spotlight:

NTPC rose 0.08%. The company reported a 34.42% YoY increase in consolidated net profit to Rs 10,614.95 crore in Q4 FY26, while revenue from operations was marginally lower by 0.29% YoY to Rs 49,687.77 crore in Q4 FY26 compared with Q4 FY25.

Life Insurance Corporation of India rose 2.17% after it has reported a 23.18% jump in standalone net profit to Rs 23,420.43 crore in Q4 FY26 compared with Rs 19,012.79 crore in Q4 FY25. Net premium income climbed 11.59% YoY to Rs 164,691.21 crore in Q4 FY26. On full year basis, the company�s standalone net profit jumped 19.25% YoY to Rs 57,419 crore in FY26. Total premium rose 9.80% YoY to Rs 5,35,984 crore in FY26.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell 0.32% to 7.065 compared with previous session close of 7.088.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 95.3650 compared with its close of 95.6000 during the previous trading session.

MCX Gold futures for 5 June 2026 settlement rose 0.26% to Rs 159,095.

The US Dollar Index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.20% to 99.04.

The United States 10-year bond yield fell 1.90% to 4.486.

In the commodities market, Brent crude for July 2026 settlement tanked $6.22 or 6.01% to $97.32 a barrel.

Global Markets:

Asian markets traded in the green on Monday, with Japan�s Nikkei 225 breaching the 65,000 mark for the first time to hit a record high in holiday-thinned trading. Investor sentiment improved after reports suggested the Strait of Hormuz could reopen soon, triggering a sharp decline in oil prices and lifting risk appetite across markets.

Markets in Hong Kong and South Korea remained closed for public holidays, while U.S. markets are also shut on Monday for the Memorial Day holiday.

Investor sentiment was further supported after U.S. President Donald Trump reportedly said in a social media post that negotiations with Iran were �proceeding in an orderly and constructive manner.� Trump added that he had instructed his representatives �not to rush into a deal� as �time is on our side.�

Oil prices fell more than 5% following Trump�s comments, easing pressure on investors. Crude prices had surged sharply earlier after the Trump administration imposed a blockade on Iranian ports and Tehran effectively closed the Strait of Hormuz, one of the world�s most critical energy shipping routes.

West Texas Intermediate crude futures for July fell 4.47% to $92.28 per barrel in early Asian trade, while Brent crude futures for July declined 4.13% to $99.26 per barrel.

On Wall Street, stocks ended higher on Friday as Treasury yields eased, helping major indices post weekly gains despite heightened volatility. The Dow Jones Industrial Average gained 294.04 points, or 0.58%, to close at 50,579.70. The 30-stock index touched an intraday record high and registered another all-time closing high. The S&P 500 rose 0.37% to settle at 7,473.47, while the Nasdaq Composite advanced 0.19% to end at 26,343.97.