Stock Markets May 25, 2026 06:30 AM

Indian equities rise as banking, auto and energy stocks lead gains; Nifty 50 up 1.32%

Nifty and Sensex finish higher as Adani Enterprises hits a 52-week high and volatility eases

By Hana Yamamoto

Indian markets closed higher on Monday, supported by strength in Banking, Auto and Oil & Gas shares. The Nifty 50 advanced 1.32% while the BSE Sensex 30 climbed 1.42%. Adani Enterprises reached a 52-week high and overall market volatility, as measured by the India VIX, fell to a one-month low.

Indian equities rise as banking, auto and energy stocks lead gains; Nifty 50 up 1.32%

Key Points

  • Nifty 50 closed up 1.32% and BSE Sensex 30 rose 1.42%, led by Banking, Auto and Oil & Gas sectors.
  • Eicher Motors, Adani Enterprises and Bajaj Finance were among the top gainers; ONGC, Hindalco and Nestle India were among the laggards.
  • India VIX fell to 16.50, a one-month low, while crude oil futures dipped sharply and gold futures advanced.

Indian stocks ended the trading day in positive territory on Monday, with gains centred in Banking, Auto and Oil & Gas segments providing the lift. At the National Stock Exchange close, the benchmark Nifty 50 rose 1.32%. On the Bombay Stock Exchange, the Sensex 30 finished up 1.42%.

Among Nifty constituents, Eicher Motors Ltd. (NSE:EICH) posted the largest advance, increasing 6.45% - a gain of 450.50 points to close at 7,432.00. Adani Enterprises Ltd (NSE:ADEL) also saw a notable rise, adding 4.77% or 129.70 points to finish at 2,847.00, while Bajaj Finance Ltd (NSE:BJFN) gained 2.99% or 27.40 points to end the session at 943.95.

On the downside, Oil And Natural Gas Corporation Ltd (NSE:ONGC) declined 1.72%, slipping 5.00 points to close at 285.00. Hindalco Industries Ltd. (NSE:HALC) fell 0.96% or 10.60 points to 1,098.60, and Nestle India Ltd (NSE:NEST) eased 0.56% or 8.00 points to finish at 1,415.10.

The BSE Sensex 30 featured similar leadership, with Bajaj Finance Ltd (BO:BJFN) up 2.98% to 943.65 and HDFC Bank Ltd (BO:HDBK) rising 2.82% to settle at 788.00. Eternal Ltd (BO:ETEA) gained 2.71% to close at 248.50. Among laggards, Infosys Ltd (BO:INFY) slipped 0.48% to 1,168.80, Tata Consultancy Services Ltd. (BO:TCS) lost 0.40% to finish at 2,308.05, and Nestle India Ltd (BO:NEST) was down 0.26% to 1,419.50 at the close.

Market breadth was positive at both primary exchanges. On the NSE, 1,733 stocks advanced versus 815 that declined and 51 that ended unchanged. On the BSE, 2,563 issues were higher, 1,482 declined and 200 were unchanged.

Adani Enterprises Ltd (NSE:ADEL) reached a 52-week high in the session, closing at 2,847.00 after a 4.77% gain.

Volatility, as measured by the India VIX - which reflects implied volatility in Nifty 50 options - eased materially, falling 7.84% to 16.50, a new one-month low.

Commodities moved notably during the session. Gold futures for August delivery rose 1.07% or 48.92 to $4,605.32 a troy ounce. Crude oil prices declined sharply: the July delivery contract fell 5.65% or $5.46 to $91.14 a barrel, while the August Brent contract dropped 5.35% or $5.36 to trade at $94.85 a barrel.

In currency markets, the Indian rupee strengthened against the dollar and was quoted at 95.24 to the USD, a 0.48% decline in USD/INR. The euro traded at 110.88 against the rupee, with EUR/INR down 0.14%. The US Dollar Index futures were lower as well, down 0.25% at 98.94.


Key takeaways from the session include broad-based equity gains led by financials, autos and energy names, reduced option-implied volatility, and notable declines in crude oil prices that coincided with strength in gold. Market breadth favored advancers on both principal exchanges, and one large-cap stock - Adani Enterprises - reached a year-high during the day.

Risks

  • A notable drop in crude oil prices - which fell over 5% for both WTI July and Brent August contracts - could introduce sector-specific volatility for energy and related stocks.
  • Even with broad market gains, several large-cap IT names declined modestly, indicating potential divergence between cyclicals and defensives.
  • Although implied volatility decreased, a sharp move in commodities or currencies could reverse risk sentiment and affect market direction.

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