Energy stocks lead rally as falling oil prices and foreign inflows boost investor sentiment; Adani Group, cable stocks see sharp upmove.
May 5, 2025 | The Indian stock market rebounded strongly on Monday, May 5, with the Sensex gaining 295 points and the Nifty 50 crossing the 24,450 mark, powered by falling crude oil prices, robust foreign institutional investor (FII) inflows, and positive global cues.
The Nifty 50 rose 0.52% to close at 24,472, while the Sensex ended 0.43% higher at 80,850. The broader market outperformed the benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices gaining 1.86% and 1.06%, respectively.
🔹 Key Market Drivers
- Crude oil prices fell nearly 4% after OPEC+ announced a production hike, lowering import cost pressure on India.
- Foreign investors remained net buyers, infusing strength into equities.
- Positive U.S. economic data, including the addition of 177,000 jobs in April, and signs of easing U.S.-China trade tensions, further improved sentiment.
- Optimism over an upcoming US-India trade agreement under the Trump administration also lifted investor morale.
🔶 Top Gainers
- Adani Group stocks rallied between 2% and 11%, amid reports of high-level talks with Trump administration officials over a pending bribery investigation.
- Oil marketing companies (OMCs) like HPCL, BPCL, and IOCL surged up to 5%, tracking the crude oil plunge.
- Paint, aviation, and chemicals stocks saw gains due to falling input costs.
- RR Kabel stock jumped 15% after a strong March quarter, sparking a rally across cable and wires counters.
🧠 Expert View
Market experts pointed to a strategic buying opportunity amid recent volatility.
🔍 What’s Next
All eyes now turn to the U.S. Federal Reserve’s policy meeting on May 6-7. While no rate cut is expected immediately—Fed funds futures imply just a 3.2% chance—any dovish commentary from Fed Chair Jerome Powell could influence global markets significantly.
Also Read: Rupee Hits Multi-Month High vs US Dollar Amid Crude Price Crash, FPI Inflows
🏷️ Tags:
Sensex, Nifty 50, Indian Stock Market, Adani Group, Crude Oil Prices, FII Inflows, OMC Stocks, US-India Trade Deal, Federal Reserve