May 5, 2025 – Mumbai: Indian equity markets witnessed a robust rally on Monday, with the BSE Sensex climbing over 500 points and the NSE Nifty surpassing the 24,500 mark. This upswing is attributed to a significant drop in crude oil prices, sustained foreign institutional investor (FII) inflows, and positive cues from global markets.
Market Performance Highlights
- The Sensex surged by 507.65 points (0.63%) to reach an intraday high of 81,009.64.
- The Nifty 50 advanced by 164.6 points (0.67%), touching 24,511.30.
Sensex rises over 500 points. 3 reasons why stock market is rising https://t.co/SW6SekWswf
— IndiaTodayFLASH (@IndiaTodayFLASH) May 5, 2025
Key Drivers Behind the Rally
1. Crude Oil Prices Plummet
Brent crude oil prices fell below $60 per barrel, marking a significant decline of over 3%. This drop alleviates inflationary pressures and is particularly beneficial for oil-importing countries like India.
2. Sustained FII Inflows
Foreign investors have shown renewed interest in Indian equities, with net purchases amounting to ₹4,223 crore in April. This marks a reversal from the net outflows observed in the preceding three months.
3. Global Market Optimism
Positive trends in U.S. markets, coupled with easing geopolitical tensions and favorable economic data, have bolstered investor confidence globally, reflecting positively on Indian markets.
Sectoral and Stock-Specific Movements
- Top Gainers: Adani Ports, Asian Paints, Bajaj Finserv, Tata Consultancy Services, Infosys, HDFC Bank, Power Grid, HCL Technologies, Titan, and Tata Motors led the gains on the Sensex.
- Notable Decliner: Kotak Mahindra Bank’s shares declined by nearly 6% following a drop in consolidated net profit for Q4 FY25, attributed to increased stress in its microlending segment.
Outlook
Market analysts anticipate that the current bullish momentum may persist, driven by continued FII participation, stable global cues, and favorable domestic economic indicators. However, investors are advised to remain cautious of potential geopolitical developments and upcoming corporate earnings reports that could influence market dynamics.
Note: The above information is based on market data as of May 5, 2025.
