India’s equity markets soared to fresh highs in 2025 on Monday, supported by broad-based buying across mid- and small-cap segments, as well as favorable moves in energy and consumer-driven stocks due to a drop in global crude oil prices. The rally came even as banking stocks lagged, especially after mixed earnings from major private and public sector banks.

Benchmark Indices Touch New Peaks

The Nifty 50 rose 114 points, ending at a record 24,461, while the Sensex added 295 points, closing at 80,797, both marking their highest closing levels in 2025. The rally was more intense in the broader market, where the Nifty Midcap 100 surged 2% to 54,676.

The overall market breadth remained strong, with an advance-decline ratio of 5:2, indicating strong bullish sentiment across the board.

Nifty Bank Underperforms Amid Mixed Q4 Earnings

Despite the broader rally, the Nifty Bank index declined by 196 points, settling at 54,920. The weakness came from post-earnings drops in State Bank of India (SBI) and Kotak Mahindra Bank, both of which delivered mixed results for the fourth quarter.

This highlights how banking stocks are experiencing investor caution, even as other sectors thrive.

Crude Oil Decline Fuels Gains in Energy and Consumption Stocks

A sharp dip in international crude oil prices had a direct and visible impact on Indian markets. Upstream oil companies (those involved in exploration and production) saw pressure, while downstream firms (involved in refining and distribution), such as:

• Indian Oil Corporation (IOC)

• Bharat Petroleum Corporation Ltd (BPCL)

• Hindustan Petroleum Corporation Ltd (HPCL)

…saw strong buying interest, supported by expectations of margin expansion.

The lower oil prices also improved sentiment in oil-dependent sectors like paint manufacturers and airlines, where input cost reductions could lead to better profitability.

Metals Recover After Three Days of Losses

The Nifty Metal index rose over 1%, ending a three-day losing streak. This was largely due to buying interest returning in major metal names amid stabilizing global metal prices.

This segment, while volatile in the previous week, appears to have found support at lower levels, making it a focus for short-term traders.

Mahindra & Mahindra Surges on Strong Q4 Numbers

Auto major Mahindra & Mahindra (M&M) saw a 3% jump in its stock price after it beat Q4 profit estimates, largely due to robust performance in its tractor division.

The company’s agri-equipment business remains strong, and the market welcomed its ability to maintain margins despite input pressures.

RR Kabel Leads the Cable Segment Rally

RR Kabel’s stock soared 14% after the company posted strong earnings, encouraging investors to rotate into other electrical cable-related stocks. The move reflects growing investor interest in infra-related segments, particularly those aligned with power transmission and housing growth.

Swiggy Sees Biggest Single-Day Gain Since Listing

Food delivery platform Swiggy surged 12%, marking its best single-day performance since going public. The surge was powered by high trading volumes and buying interest following robust user activity and operational updates.

Other Key Stock Movers

• Gravita India climbed 6% post a positive Q4 update, indicating strong demand traction.

• Parag Milk Foods leapt 14%, driven by margin improvements and forward-looking guidance.

• IRCON International advanced nearly 4% after winning a ₹458 crore contract from NEEPCO, boosting infrastructure sentiment.

• Indraprastha Gas Ltd (IGL) gained 7%, having raised prices for the second consecutive month. This came ahead of a May 14 open house by the Petroleum and Natural Gas Regulatory Board (PNGRB), which is expected to address pipeline tariff structures.

• Peers in the city gas distribution (CGD) sector also rallied on optimism over improved realisations.

CDSL Recovers from Intraday Losses on Positive Management Update

Central Depository Services (India) Ltd (CDSL) ended the day down 1.6%, but recovered 5% from the day's lows, following encouraging management commentary. The update helped reduce investor anxiety over earlier concerns.

Trent Continues Bullish Momentum

Retail major Trent climbed 4%, placing it among the top Nifty gainers. The stock has been on a sustained uptrend, driven by strong store performance, customer footfalls, and expansion plans.

Sectoral Snapshot

Investor Sentiment and Technical Outlook

The overall market sentiment remains positive, particularly in midcap and consumption-related stocks. The decline in crude prices is being viewed as a net positive for India’s inflation-sensitive sectors.

However, some caution persists in banking and financials, especially with mixed earnings signals.

What to Watch Ahead:

• Developments from the PNGRB’s May 14 open house on tariffs

• Crude oil price trends and their continued impact on Indian equities

• More Q4 earnings updates, especially from key midcap and banking names

Conclusion

India's stock market is entering May 2025 with strong momentum, as declining oil prices, robust midcap performance, and selective sector gains support broader indices. While banking shows relative weakness, other sectors are benefiting from both macro and company-specific tailwinds.

Investors should closely monitor crude trends, upcoming earnings, and regulatory developments to align their strategies. The current rally, led by quality midcaps, consumption plays, and energy beneficiaries, signals renewed bullishness across Indian equities.

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