The Indian stock market experienced a remarkable surge on Thursday, May 15, 2025, with the Nifty50 closing above 25,000 and the Sensex soaring by 1,200 points. This rally was driven by a confluence of positive factors that boosted investor confidence and market sentiment.The Times of India+4The Times of India+4The Times of India+4
Key Drivers Behind the Market Rally
- Prospects of a Zero-Tariff Trade Deal with the U.S.
U.S. President Donald Trump announced from Doha that India has proposed a trade deal offering “basically zero tariffs.” This significant move aims to reduce the average tariff difference between the two nations from approximately 13% to below 4%, marking a substantial step toward harmonizing trade policies with major global partners. - Decline in Oil Prices
Global oil prices fell by over $2 per barrel amid discussions of a potential U.S.-Iran nuclear agreement, which could lead to sanctions relief and increased oil supply. This decline helps control inflation pressures and reduces India’s import expenses, positively impacting domestic market conditions. - Decrease in Gold Prices
Gold prices dropped to a one-month low, reflecting diminished geopolitical concerns and a shift away from safe-haven investments. This trend indicates improved investor sentiment and a greater willingness to invest in equities. - Surge in Foreign Institutional Investments (FII)
Foreign institutional investors have poured approximately ₹50,000 crore into Indian equities since April 15, recording positive net inflows in 19 out of the last 20 trading sessions. This influx of foreign capital underscores global confidence in India’s economic prospects. - Robust Performance Across Key Sectors
The rally was broad-based, with significant gains in the financial, automotive, technology, and metal sectors. Nifty Financials rose by 1.3%, the automotive sector by 1.9%, IT by 1.2%, and metals by 1.7%. Small-cap and mid-cap indices also advanced by approximately 0.7%, indicating widespread market participation.
These factors contributed to a substantial increase in investor wealth, with the total market value of BSE-listed companies rising by ₹9.08 lakh crore over two days, reaching ₹4.4 trillion.
For more detailed information, you can read the full article here: Why did the stock market rally today? Nifty50 ends above 25,000; Sensex 1,200 points up – top 5 reasons investors are richer by Rs 9 lakh crore.
