Indian equities began the week with a resounding uptrend, driven by improving geopolitical dynamics and upbeat global cues. Both Sensex and Nifty surged over 3.7%, marking a significant risk-on sentiment across sectors.
The Nifty 50 soared 3.82%, logging its best single-day gain since February 2021, and breached the 24,900 mark for the first time since October 2024. The BSE Sensex climbed 3.74%, closing near multi-month highs. This broad-based rally was accompanied by a 15% drop in India VIX, settling near 18.4, reflecting a sharp decline in short-term volatility expectations.
Key Market Highlights:
IT-Led Resurgence: The Nifty IT index jumped 6.7%, its strongest one-day move since 2020, as U.S.–China tariff easing improved sentiment for export-driven tech majors. Financial Powerhouses Lead: Index heavyweights Infosys (+118 pts), ICICI Bank (+112 pts), and HDFC Bank (+80 pts) were top contributors. Profit-Taking Limited: Sun Pharma and IndusInd Bank saw mild profit-booking. Nifty Bank Rally: Gained 3.34%, up 1,787.60 points, mirroring the broad momentum. Mid and Small Caps Shine: Nifty Midcap 100 and Smallcap 100 indices rose over 4%, reflecting strong participation across the board.
Geopolitics & Global Drivers:
The rally was underpinned by the easing of India–Pakistan tensions and positive developments in U.S.–China trade negotiations. A 90-day tariff reduction window announced by U.S. officials fueled hopes of sustained global trade recovery, benefiting sectors such as IT, metals, and manufacturing.
On the commodities front, gold dropped 3,758 points and silver fell 1,788 points, reacting to reduced safe-haven demand amid improved geopolitical clarity.
Market Breadth & Momentum
All major sectoral indices ended in the green, affirming the rally’s depth. Bullish sentiment swept through cables, metals, auto, and export-linked names, further energized by global cooperation and easing inflation expectations.
Note: For detailed technical analysis of Nifty and Bank Nifty setups, including key patterns and outlook, watch our exclusive [YouTube video – May 12, 2025 Edition].
Global Economic Calendar | Week of May 13–17, 2025
Monday, May 13
India: CPI Inflation (April) Germany: Wholesale Price Index China: M2 Money Supply, New Yuan Loans
Tuesday, May 14
US: CPI Inflation (April) UK: Jobless Rate, Average Earnings Japan: Producer Price Index
Wednesday, May 15
Eurozone: GDP (Q1 Flash Estimate) India: IIP Data US: Retail Sales (April)
Thursday, May 16
China: Industrial Production, Retail Sales India: WPI Inflation US: Housing Starts, Jobless Claims
Friday, May 17
Eurozone: Final Inflation Rate (April) US: Michigan Consumer Sentiment (Prelim)
Closing Thoughts
May 12 showcased the resilience and optimism embedded in India’s market structure. With geopolitical relief, favorable macro signals, and an IT-led resurgence, investor confidence appears well-supported heading into a crucial week of inflation data and earnings announcements.
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