Stock Market Rally: Sensex Surges Over 600 Points, Nifty Crosses 25,000, Midcaps Outperform

Indian stock markets opened the week on a strong note, with Sensex rising over 600 points and the Nifty reclaiming the 25,000 mark, supported by a broad-based rally across sectors, particularly banking and financial stocks. The positive momentum comes as a welcome relief to investors after recent market volatility.

At around 9:30 AM on May 26, the Sensex was up by 617 points at 82,338.13, while the Nifty climbed 181 points to reach 25,034.45. Market breadth remained firmly positive, with over 2,000 stocks advancing against 695 declines, showcasing strong overall participation.

Midcaps and smallcaps kept pace, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.5% and 0.4%, respectively. These indices have now pared most of their year-to-date losses and are down just 1% and 6%, showing signs of a potential turnaround.

Market experts attribute the rally to a mix of global and domestic factors. Devarsh Vakil, Head of Prime Research at HDFC Securities, said that “today’s trade is buoyed by the relief generated from President Trump’s decision to extend the deadline on European tariffs rather than implementing them immediately.”

Beyond global cues, domestic resilience continues to play a key role. Despite bouts of foreign institutional investor (FII) selling in the past week, the Indian markets held their ground, thanks to strong support from domestic institutions and retail investors.

Another positive sentiment driver is the easing concerns around rising U.S. bond yields, which had been pressuring global equity markets. Expectations of a normal monsoon season and falling crude oil prices are also helping keep inflation worries in check, adding further comfort to investors.

The current uptrend reflects investor confidence in India’s long-term growth story, bolstered by strong fundamentals and continued policy support.

While it remains to be seen how long this rally can sustain, market sentiment for now appears upbeat, with analysts expecting near-term momentum to continue, especially if macroeconomic indicators remain favorable.