The Indian stock market delivered a stunning performance on May 15, 2025, with the NIFTY50 smashing past 25,000 and the SENSEX skyrocketing 1,200 points. Investors witnessed a dramatic recovery from early losses, fueled by a mix of global and domestic triggers. Wondering why the markets were up today? Here are the top five reasons driving this explosive rally.
1. US-India Trade Deal Buzz Ignites Optimism
A major catalyst was US President Donald Trump’s claim that India offered to slash tariffs on US goods to zero as part of a potential trade deal. This sparked hopes of a breakthrough in US-India trade relations, boosting investor confidence. Although India’s Foreign Minister S. Jaishankar later clarified that talks are ongoing with “nothing decided till everything is,” the initial announcement sent markets into overdrive, lifting sentiment across sectors.
2. Expiry Day Volatility Fuels Sharp Moves
Thursday marked the weekly options expiry for the NIFTY50, leading to heightened volatility. Options data pointed to a trading range of 24,500–25,000, and the index’s decisive break above 25,000 reflected strong bullish momentum. Expiry days often trigger rapid price swings as traders square off positions, amplifying the afternoon rally.
3. Broad-Based Sectoral Rally
The market’s strength was universal, with all sectors joining the party. Heavyweight sectors like banking, IT, auto, and FMCG saw robust buying. The NIFTY Bank index, in particular, outperformed, signaling confidence in financial stocks amid positive macroeconomic cues. This broad participation underscored the market’s resilience and depth.
4. Massive Wealth Creation
The rally added a staggering ₹5.31 lakh crore to the market capitalization of NSE-listed firms, pushing the total to ₹438.01 lakh crore. The SENSEX closed at 82,530.74 (up 1.48%), while the NIFTY50 settled at 25,062.10 (up 1.6%). This wealth creation further fueled investor optimism, reinforcing the bullish trend.
5. Technical Breakout Signals Bullish Momentum
From a technical perspective, the NIFTY50’s climb above 25,000 marked a seven-month high, signaling a strong breakout. Analysts noted that this move could pave the way for further gains, with resistance levels around 25,200–25,300. The robust recovery from the day’s lows also highlighted strong buying interest at lower levels, bolstering market confidence.
What’s Next for Investors?
The market’s surge was a perfect storm of trade deal hopes, expiry-driven volatility, and technical strength. However, investors should stay vigilant as trade talks remain inconclusive, and global cues like US economic data could influence near-term trends. For now, the NIFTY50’s milestone and the SENSEX’s leap reflect a market brimming with optimism.
