May 15, 2025
New Delhi, India
Stock Market Analysis
Indian equity benchmarks witnessed a strong rebound on Thursday, closing sharply higher after erasing early losses. Buoyed by optimism surrounding a potential zero-tariff trade deal between India and the United States, the BSE Sensex surged 1,200 points while the NSE Nifty reclaimed the 25,000 mark for the first time in over seven months.
The Sensex climbed 1,200.18 points, or 1.48%, to end at 82,530.74, after hitting an intraday high of 82,718.14. Meanwhile, the Nifty50 gained 395.20 points, or 1.6%, to settle at 25,062.10—its highest close since October 17, 2024. The rally added nearly ₹4.72 lakh crore to overall market capitalisation in a single day.
Investor sentiment improved following US President Donald Trump’s announcement that India has offered to reduce tariffs on US goods, signaling progress in bilateral trade discussions. Hopes of a zero-tariff deal between the two nations lifted global market mood and revived risk appetite across sectors.
Except IndusInd Bank, all other Sensex components ended in the green. Top gainers included Tata Motors (+4.16%), HCL Technologies (+3.37%), Eternal (+2.22%), and Adani Ports (+2.19%). On the Nifty, Hero MotoCorp, JSW Steel, Shriram Finance, and Tata Motors led the charge, gaining up to 6%.
Broader indices also participated in the rally. The Nifty Midcap100 index rose 0.70%, while the Smallcap100 advanced 0.54%. All NSE sectoral indices closed in positive territory, led by Nifty Auto and Realty (up 1.92% each), Metal (+1.74%), IT (+1.16%), Financial Services (+1.29%), and Bank Nifty (+1.01%).
The volatility index India VIX cooled 1.93% to 16.89, indicating easing investor concerns.
Besides trade optimism, the rally was supported by other favorable macro factors including falling oil and gold prices, cooling domestic inflation, and continued foreign institutional inflows—raising hopes of a rate cut by the Reserve Bank of India in its next policy meet.
As the market eyes further cues from global central banks and economic data, analysts expect momentum to stay positive in the short term, provided global sentiment remains supportive.
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