Written by Indian equity markets surged to seven-month highs on Thursday, May 15, 2025, with the Nifty 50 breaching the 25,000 mark for the first time since October 2024 and the Sensex posting a robust 1,200-point gain. The rally was driven by broad-based buying across sectors, optimism over India-US trade relations, and improving domestic economic indicators.
Market Performance
The Nifty 50 index jumped 395 points, or 1.6%, to close at 25,062.10, marking its first close above 25,000 since October 17, 2024.
The BSE Sensex surged 1,200 points to settle at 82,530.74, after touching an intraday high of 82,718.14.
Gains were broad-based: 49 of the 50 Nifty constituents ended in the green, and all sectoral indices on the NSE closed higher.
In the broader markets, the Nifty Midcap100 and Smallcap100 indices rose 0.70% and 0.54%, respectively.
Drivers Behind the Rally
Sentiment was boosted by hopes of a breakthrough in India-US trade negotiations after reports that India may reduce tariffs on US goods, easing bilateral trade tensions.
Analysts cited a cyclical recovery in the Indian economy, supported by monetary easing from the Reserve Bank of India, recent tax cuts, and a favorable monsoon outlook.
Cooling inflation and positive global cues, including progress in US-China trade talks, also contributed to the upbeat mood.
Sector and Stock Highlights
Auto, banking, and financial stocks led the rally, with Tata Motors up 4.16%, HCL Technologies gaining 3.37%, and Adani Ports rising 2.19%.
Only IndusInd Bank among Sensex constituents ended in the red, down 0.24%.
The India VIX, a measure of market volatility, fell 1.93% to 16.89, indicating reduced investor anxiety.
Outlook and Analyst Views
Technical analysts noted that the bullish trend remains intact for Nifty, with strong support seen at 24,500 and potential for the index to move towards 25,200–25,300 in the short term.
Some analysts cautioned that after the recent gains, markets may see a phase of consolidation and profit-taking at higher levels.
Thursday’s rally marks a significant milestone for Indian equities, reflecting renewed investor confidence amid improving macroeconomic conditions and positive global developments. With the Nifty closing above 25,000 after seven months and the Sensex posting a sharp rise, market participants will be closely watching for further cues from domestic earnings and global trade negotiations in the coming weeks.