NIFTY50 Breaches 25,000; Sensex Soars 1,350 Points on Trade Optimism and FII Inflows

Mumbai | 15 May 2025 – The Indian stock market staged a dramatic rally on Thursday, with benchmark indices surging to multi-month highs. The NIFTY50 index crossed the psychological 25,000 mark, touching a six-month high, while the SENSEX surged over 1,350 points, trading near 82,570 in intraday action. The rally was broad-based, fuelled by hopes of a potential US-India trade breakthrough, robust foreign institutional investor (FII) inflows, and expiry-driven volatility.

Mid and small-cap indices participated in the uptrend. The NIFTY Midcap 100 gained 0.70% to close at 56,531.65, while the NIFTY Smallcap 100 rose 0.52% to 17,326. Across the board, sectoral indices were in the green, indicating strong investor appetite across asset classes.

Key Highlights of Today’s Trade

• NIFTY50 closed above the 25,000 mark for the first time in six months, gaining over 400 points intraday.
• SENSEX rallied more than 1,350 points, driven by broad-based buying and expiry day short covering.
• FIIs remained net buyers, injecting ₹931.80 crore into domestic equities on Wednesday.
• All major sectoral indices closed in green, led by auto, realty, and metals.
• Derivatives expiry contributed to heightened intraday volatility, pushing volumes higher.
• Gold and crude oil prices declined, tracking global cues and easing geopolitical risks.

Sectoral Gains Reflect Broad-Based Optimism

Sectorally, the rally was led by NIFTY Auto, Realty, Media, Metals, and Financial Services, all of which posted gains of up to 1.89%. The breadth of the market remained positive through the session, as investors priced in favourable global cues and anticipated policy clarity on trade.

Trade Optimism Sparks Risk-On Sentiment

Sentiment received a major boost after US President Donald Trump, during a public appearance in Doha, indicated that India and the United States are nearing a trade agreement. Trump claimed India had offered “practically zero tariffs” on US imports, stoking optimism that a formal deal could be imminent.

While the Indian government has not officially confirmed the statement, the comments were enough to inject bullishness into the markets. A resolution to longstanding trade disputes between the two countries could lift several overhangs for investors, particularly in sectors exposed to global supply chains.

The sharp uptick also coincided with weekly derivatives expiry for the NIFTY50, contributing to heightened volatility and exaggerated moves. Traders had positioned themselves within a broad range of 24,500–25,000 for the day’s expiry, with options data suggesting strong resistance and support around these levels. The index’s ability to close near the upper end of this band further cemented bullish sentiment.

FIIs Continue Buying Spree

Adding to the strength in domestic markets, foreign institutional investors continued their buying streak. According to exchange data, FIIs were net buyers to the tune of ₹931.80 crore on Wednesday. This follows net inflows of ₹4,223 crore in April — the first month of positive foreign flows after three consecutive months of selling.

Commodity Snapshot

While equities surged, commodities displayed mixed signals, particularly in precious metals and crude oil.

In the global market, gold futures traded at $3,170 per ounce, down 0.5%. The decline was attributed to a combination of easing geopolitical tensions and a stronger dollar. Investors trimmed safe-haven positions as trade tensions between the US and China showed signs of cooling.

Crude oil prices, meanwhile, fell sharply. Brent crude traded near $63 per barrel, down 3.8%, while WTI crude fell 4.1% to around $60.5. The slide was driven by expectations of a potential US-Iran nuclear deal, which could bring Iranian oil back into the global supply pool. Iran, a key member of OPEC, produces nearly 3 million barrels per day, accounting for around 3% of global output. Any increase in supply could weigh on already fragile oil markets.

Outlook

Thursday’s rally reflects a confluence of supportive factors, but analysts remain cautious. “The markets have reacted positively to speculative news on the trade front. However, without official confirmation, we expect volatility to persist,” said a senior equity strategist at a leading brokerage.

The coming sessions will likely be driven by further clarity on US-India trade relations, macroeconomic data, and continued foreign capital flows. With the NIFTY50 closing above a major psychological threshold, market participants will be watching whether the momentum sustains or cools off in the absence of concrete developments.

As the week progresses, investors will also track signals from global central banks and geopolitical updates that could influence emerging market flows. For now, the Indian equity market appears to be riding a wave of optimism — albeit cautiously.