On Monday, May 5, 2025, Indian equity markets experienced a notable uptick, buoyed by positive developments in global trade relations and sustained foreign investments.
The Nifty 50 index rose by 0.47% to close at 24,461.15, while the BSE Sensex gained 0.37%, ending the day at 80,796.84. This marks the continuation of a positive trend, with benchmarks logging their longest weekly winning streak of the year.
Investor sentiment was uplifted by renewed hopes of a potential trade agreement between India and the United States. This optimism was further reinforced by a significant influx of foreign portfolio investments, with FPIs purchasing shares worth ₹401.47 billion ($4.8 billion) over the past 12 sessions—the longest such streak in two years.
The oil and gas sector led the gains, with the Nifty Oil & Gas index climbing 1.7%. This surge was attributed to a drop in crude oil prices following OPEC+'s decision to accelerate oil supply increases. State-run oil refiners benefited notably, with BPCL, Indian Oil, and HPCL shares rising by 3.2%, 3.7%, and 6.4%, respectively.
In the automotive sector, Mahindra & Mahindra's stock increased by 3.3% after reporting March-quarter revenue that surpassed analysts' expectations, driven by strong demand for its SUVs. This contributed to a 1.9% rise in the Nifty Auto index.
Adani Group companies also saw positive movement, with shares rising following reports of the group's engagement with U.S. officials to address an overseas bribery investigation.
However, not all sectors fared equally. Kotak Mahindra Bank's shares fell by 5.5% after the bank reported a larger-than-expected decline in quarterly profits, attributed to increased provisions for bad loans. Similarly, State Bank of India's stock declined by 2% following a nearly 10% drop in quarterly earnings.
Overall, the Indian stock market's performance on Monday reflects a complex interplay of global trade developments, foreign investment trends, and sector-specific dynamics. Investors remain cautiously optimistic as they monitor ongoing economic indicators and corporate earnings reports.