Why Is Share Market Rising Today? Key Factors Behind Sensex, Nifty Rally On May 25

The domestic equity markets witnessed a significant gap-up opening on Monday, amid easing geopolitical tensions, falling global crude oil prices, and continued strength in domestic buying. As of 9:40 am, the BSE Sensex jumped 759.54 points to 76,176.21 in the early trade, while the NSE Nifty rose 217 points to trade at 23,934.76.

Banking and financial stocks led the rally, with HDFC Bank gaining 2.07%, Kotak Mahindra Bank rising 1.97%, Bajaj Finserv advancing 1.33% and ICICI Bank climbing 1.26%. The strong move in financial counters pushed the Nifty Bank index sharply higher in early trade.

Auto stocks also witnessed robust buying interest. Mahindra & Mahindra emerged as the top Sensex gainer, jumping 2.79%, while Maruti Suzuki gained 1.86% amid

optimism that lower crude oil prices could ease cost pressures and improve demand outlook.

Factors behind market rally on May 25

US-Iran deal likely: The Indian stock market kicked off the week on firmer footing as expectations rise that a breakthrough might be imminent in the three-month-old US-Iran war after US President Donald Trump said the Iran deal is “largely negotiated”.

Crude oil below $100 dollars: Brent crude futures on Monday fell 4.6% to trade at $98.8 per barrel amid hoes of US-Iran deal.

RBI record surplus transfer: The Reserve Bank of India on Friday announced a record dividend of Rs 2.87 lakh crore to the government for the year ended March 2026, providing a financial boost for the exchequer amid rising import bills and supply chain disruptions due to the West Asia conflict. The dividend is 6.7 per cent higher than Rs 2.69 lakh crore for the 2024-25 fiscal year.

Rupee rises 40 paise: The Indian rupee on Monday strengthened by 40 paise to open at 95.20 to a US dollar, against the previous close of 95.60 on Friday.

India VIX eases: The India VIX, often referred to as the market’s fear gauge, declined sharply by 6.29% to 16.78, suggesting easing volatility concerns.