On May 22, 2025, the Indian stock markets staged an exhilarating comeback, shrugging off earlier losses with a robust rally. The SENSEX surged 769 points (+0.95%) to close at 81,721, while the NIFTY50 leaped 243 points (+1%) to end at 24,853, confidently breaching the 24,800 resistance mark.
What sparked this impressive bounce? A potent combination of strong earnings, sectoral strength in tech and FMCG, and relief in global bond markets sent investor sentiment soaring, reversing the sour mood from the prior session’s sell-off.
🔍 What Drove the Rally?
1. Sectoral Strength in Tech & FMCG
Key players such as Eternal (formerly Zomato), ITC, and HDFC Life led the charge. These heavyweight stocks drew strong buying interest, reflecting investor confidence in their earnings and business outlook.
2. Global Relief: US Treasury Yields Fall
A 7-basis-point drop in 10-year US Treasury yields (now at 4.53%) reduced global market tension and reignited risk appetite, favoring emerging markets like India.
3. Earnings Season Boost
A raft of solid Q4 FY25 earnings—particularly from IT and FMCG names—added fuel to the rally. Eternal and ITC were among the highlights, delivering results that exceeded market expectations.
4. Support from Asian Peers
Positive momentum in regional markets like Japan’s Nikkei 225 and South Korea’s Kospi created a conducive backdrop for Indian equities to climb.
Despite the rally, both indices still posted weekly losses of over 0.65%, thanks to ongoing global uncertainties around US-India trade negotiations, fiscal risks in the US, and currency market volatility.
🌟 Market Movers: Who Lit Up the Screens?
📈 Eternal: +4% on Strategic Clarity
Eternal climbed 3.6% on the NSE. Despite a steep 78% drop in YoY profits (₹39 crore), its emphasis on Net Order Value (NOV) in core businesses impressed the market. The company’s pivot toward high-value segments reassured investors of its long-term game plan.
📈 Adani Enterprises: +2% on Mega Profit Jump
Closing at ₹2,531.15, Adani Enterprises rose 2% following a 752% profit spike in Q4 FY25—thanks to a ₹3,945.73 crore windfall from divesting its Adani Wilmar stake. Analysts maintain a “Strong Buy” outlook as the conglomerate shows resilience across its verticals.
Other Notables
-
HDFC Life: +3.28%, buoyed by optimism in the life insurance space.
-
Jio Financial: +2.5%, riding a fintech optimism wave.
-
PowerGrid: +2.46%, as PSU stocks attracted institutional inflows.
-
ITC: +2.32%, after a solid quarter led by rural demand and stable cigarette sales.
🚀 Stocks That Stole the Spotlight
🔼 Reliance Power: Rocketed over 15% after swinging to a ₹126 crore Q4 net profit, reversing last year’s losses.
🔼 Eternal (Retail Pop): Strong demand from retail investors pushed its intraday gains even higher.
📊 Sector Performance: FMCG and Banking in the Lead
-
Nifty FMCG: Jumped 1.63%, thanks to strong showings from ITC and Honasa Consumer.
-
Nifty Private Bank: Up 1.08%, supported by HDFC Bank and Axis Bank.
-
Other sectors including IT, Financial Services, Metal, Oil & Gas, and Realty also posted healthy gains of up to 0.95%.
Nifty IT gained traction after Bernstein highlighted stable demand and robust deal flow, setting up Indian IT for a strong FY27.
🔍 Technical View: Signs Point to a Breakout
The NIFTY50 held firm at the 21-day Exponential Moving Average, staying within a consolidation band of 24,700–25,000.
-
Upside Trigger: A clean break above 25,000 may drive the index toward 25,250–25,350.
-
Support Level: 24,700 remains the line in the sand for bulls.
With the short-term trend tilting bullish, traders are watching closely for a decisive breakout.
🔮 Looking Ahead: Key Themes to Watch
-
US-India Trade Talks: Potential announcements from President Trump could reshape near-term trade dynamics.
-
US Fiscal Stability: Worries over US debt and spending could impact global flows.
-
Currency Watch: The Indian rupee holding firm above ₹84/USD supports confidence but remains vulnerable to external shocks.
Analysts remain constructive on India’s prospects, thanks to a normal monsoon outlook, low inflation (CPI at 3.16%), and corporate strength. But with global policy risks in play, selective investing—particularly in IT and FMCG—is advised.
📝 Key Takeaways
-
Market Momentum: SENSEX +769 pts; NIFTY50 +243 pts.
-
Leaders: Eternal, Adani Enterprises, HDFC Life, Jio Financial, ITC.
-
Sector Strength: FMCG and Private Banks topped the charts.
-
Watch Level: NIFTY50 needs to clear 25,000 for the next big move.
Final Word:
May 22 was a strong reminder of India’s market resilience. While global factors keep traders cautious, domestic fundamentals earnings, demand, and liquidity remain compelling. Stay agile, watch the charts, and ride the wave selectively. The next breakout could be just around the corner.
