Indian stock markets close higher led by auto IT gains, midcaps outperform in rangebound trade
Team Finance Saathi
26/May/2025

What's covered under the Article:
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Nifty 50 rose 148 points closing at 25,001 as auto and IT stocks boosted market sentiment with midcap indices outperforming.
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Supreme Court ruling lifted JSW Steel by 3%, while Gillette India jumped 12% after strong Q3 earnings; Paytm gained on GST demand stay.
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Aditya Birla Fashion and Glenmark slipped despite results; NSE advance-decline ratio indicated broad-based market strength at 2:1.
The Indian stock markets saw a positive close on Monday, despite some volatility during the trading session. The key indices, Nifty 50 and Sensex, both finished with gains, supported primarily by strong performances in the auto and IT sectors. These sectors helped offset some pressure, maintaining the markets in positive territory throughout the day.
Market Overview and Index Performance
The Nifty 50 index rose by 148 points to close at 25,001, while the Sensex gained 455 points, ending the day at 82,176. This rally was accompanied by strong momentum in the Nifty Bank index, which advanced 174 points to 55,572. Notably, the Nifty Midcap 100 outperformed, climbing 379 points to close at 57,067, reflecting investor confidence in mid-sized companies.
The breadth of the market was positive, with the NSE advance-decline ratio standing at 2:1, which signals a broad-based strength across multiple sectors rather than isolated gains.
Key Stock Movements and Sector Highlights
Among individual stocks, JSW Steel rebounded 3% from earlier losses. This gain came after the Supreme Court issued a status quo order in the BPSL liquidation case, providing relief to the company’s stock which had faced pressure due to legal uncertainties.
The defence sector extended its rally for the fourth consecutive session. Stocks like Data Patterns gained 5% and Solar Industries rose 3% on positive investor sentiment about future orders and government spending.
A few standout performers in the day's trade included:
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Gillette India surged 12% on the back of robust Q3 earnings, which impressed investors with better-than-expected profitability.
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JK Cement rose 3% after reporting stronger-than-anticipated EBITDA and a 3% quarter-on-quarter increase in grey cement net sales realisation.
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Narayana Health added 3% as its margins improved and revenues rose 18% year-on-year.
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Divi’s Laboratories gained 4% following a new supply agreement with a global pharmaceutical firm, signaling strong growth prospects.
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Nibe Ltd jumped 5% after securing a ₹150.6 crore order from an Israel-based defence technology company.
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Paytm rose 3% after the Supreme Court stayed a ₹5,712 crore GST demand notice, easing regulatory pressure.
Stocks That Declined
Despite overall market strength, some stocks saw declines:
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Aditya Birla Fashion fell 2%, despite reporting strong Q4 results, indicating profit booking or cautious sentiment among investors.
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Glenmark slipped 3% after missing its FY25 guidance and reporting a decline in revenues from the US market, raising concerns about growth prospects.
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Eternal dropped 5% after major index providers MSCI and FTSE reduced its weighting in key indices, which often triggers selling pressure.
Additional Movers
Anupam Rasayan rallied 5% on the back of a significant 44% year-on-year rise in Q4 profit, reflecting operational strength. Meanwhile, RateGain Travel added over 3% following healthy Q4 financial results, showing resilience in the travel sector.
What This Means for Investors
The session’s positive close, led by auto and IT sector gains, and a strong midcap rally, suggests investor confidence remains intact despite some headwinds. The Supreme Court’s interventions in cases involving companies like JSW Steel and Paytm provided regulatory clarity, which helped stocks bounce back from intraday lows.
Moreover, the market breadth indicated by the 2:1 advance-decline ratio shows a healthy participation across sectors, an encouraging sign for sustained momentum.
However, caution is warranted as some stocks like Glenmark and Aditya Birla Fashion faced pressure due to missed guidance or profit booking, highlighting that selective stock picking remains crucial.
This report captures the market mood, sectoral trends, and key individual stock performances for traders, investors, and market enthusiasts, helping them make informed decisions in the dynamic Indian stock market environment.
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