Markets End on a Strong Note as Tariff Cut Hopes Lift Sentiment; Sensex Gains 1,200 Points, Nifty Rises 396 Points

Indian equity markets witnessed a significant upswing on Thursday, 15 May 2025, driven by renewed optimism over India-US trade relations. The BSE Sensex closed over 1,200 points, or approximately 1.48% higher at 82,530.74. Simultaneously, the NSE Nifty 50 breached the 25,000 mark, closing at 25062.10, climbing 395.20 points, or 1.6% higher.

Catalyst: US President's Remarks on Tariff Reductions

The market rally was primarily fueled by comments from US President Donald Trump, who indicated that India had proposed eliminating tariffs on US goods. Speaking at a business event in Qatar, President Trump stated that India is "willing to literally charge us no tariff," suggesting a potential easing of trade tensions between the two nations.

While the Indian government has yet to confirm these developments, the prospect of reduced trade barriers has been positively received by investors, anticipating enhanced bilateral trade and economic cooperation.

Broad-Based Market Gains

The bullish sentiment extended across various sectors. The BSE Auto index led the gains, rising over 2%, reflecting investor confidence in sectors poised to benefit from improved trade dynamics. MidCap and SmallCap indices also traded higher, indicating widespread market participation in the rally. 

Market Breadth and Investor Participation

Market breadth remained robust throughout the trading session. On the BSE, approximately 2,527 stocks advanced, 1,328 declined, and 172 remained unchanged, underscoring the broad-based nature of the rally. 

Outlook

The recent surge in Indian equities underscores the market's sensitivity to geopolitical developments and trade policies. As discussions between Indian and US officials are anticipated in the coming days, investors will closely monitor any concrete outcomes that could further influence market dynamics.

Current Market Update

• The Sensex is trading at 81,179.62 down by -148.12 points or -0.18%.
• The NSE Nifty 50 is trading at 24,641.75 up by -25.15 points or -0.10%.

Top 5 Gainers in the Market: 

Hero MotoCorp (HEROMOTOCO)

• Opening Price: ₹4,083.00
• Current Market Price (LTP): ₹4,245.00
• Percentage Change: +4.37%
  Hero MotoCorp led the gains, rising 4.37%. The rally is driven by strong April sales figures and positive management guidance on premium motorcycle launches. Recent news highlights robust demand in both urban and rural markets, as well as the company’s focus on expanding its electric vehicle portfolio.

JSW Steel (JSWSTEEL)

• Opening Price: ₹993.00
• Current Market Price (LTP): ₹1,017.60
• Percentage Change: +2.86%
  JSW Steel advanced 2.86% following upbeat quarterly results and a favourable outlook on global steel prices. The company has benefited from increased exports and improved realisations, while optimism about Chinese stimulus measures has also supported sentiment.

Tata Motors (TATAMOTORS)

• Opening Price: ₹698.75
• Current Market Price (LTP): ₹716.95
• Percentage Change: +2.58%
  Tata Motors gained 2.58% on the back of continued strong vehicle sales and positive commentary around its electric vehicle strategy. Analysts have cited robust demand across domestic and export markets, as well as expectations of margin improvement.

Shriram Finance (SHRIRAMFIN)

• Opening Price: ₹654.80
• Current Market Price (LTP): ₹665.65
• Percentage Change: +2.10%
  Shriram Finance rose 2.10% after reporting healthy loan growth and improved asset quality in its recent quarterly update. The company’s focus on expanding its retail lending portfolio and positive management outlook have further boosted investor confidence.

Adani Enterprises (ADANIENT)

• Opening Price: ₹2,463.40
• Current Market Price (LTP): ₹2,491.40
• Percentage Change: +1.20%
  Adani Enterprises climbed 1.20%, supported by renewed optimism ahead of its upcoming quarterly results and improved sentiment across Adani group stocks. Recent updates on regulatory clarity and infrastructure spending have also contributed to the uptrend.

Top 5 Losers in the Market: 15 May 2025

Power Grid Corporation (POWERGRID)

• Opening Price: ₹295.90
• Current Market Price (LTP): ₹291.50
• Percentage Change: -1.50%

Power Grid led the market losers, falling 1.50%. The decline is attributed to concerns over rising operational costs and muted growth in transmission revenues. Recent analyst commentary also highlights regulatory uncertainties and subdued investor sentiment in the power sector.

NTPC

• Opening Price: ₹339.50
• Current Market Price (LTP): ₹333.65
• Percentage Change: -1.45%

NTPC slipped 1.45% amid profit booking and worries about rising fuel costs impacting margins. Additionally, the broader weakness in the energy sector and cautious outlook on power demand have contributed to the decling.

IndusInd Bank (INDUSINDBK)

• Opening Price: ₹778.00
• Current Market Price (LTP): ₹770.85
• Percentage Change: -1.34%

IndusInd Bank dropped 1.34%, pressured by concerns over asset quality and rising slippages in its retail loan portfolio. The banking sector has seen increased volatility after recent mixed quarterly results.

Infosys (INFY)

• Opening Price: ₹1,589.80
• Current Market Price (LTP): ₹1,576.20
• Percentage Change: -1.02%

Infosys declined 1.02% following profit booking and cautious management commentary on global IT spending. Analysts have also flagged headwinds from delayed client decision-making in key international markets.

Kotak Mahindra Bank (KOTAKBANK)

• Opening Price: ₹2,085.10
• Current Market Price (LTP): ₹2,072.30
• Percentage Change: -0.96%

Kotak Mahindra Bank fell 0.96% as investors reacted to ongoing concerns about sector-wide asset quality and slower loan growth. The private banking space has been under pressure amid a cautious lending environment.

Markets Open Lower as Caution Prevails Ahead of Weekly Expiry

Indian equity markets opened on a subdued note Thursday, giving up early gains as investors turned cautious ahead of the weekly options expiry.

The Nifty 50 opened at 24,694.45, while the Sensex began the session at 81,354.43 — both benchmarks still trading below their respective 52-week highs of 26,277.35 and 85,978.25.

After staging a mild recovery on Wednesday following Tuesday’s sharp sell-off, market participants are now watching for signs of directional clarity. The Nifty managed to hold above the key 24,550 support mark in the previous session, closing 0.4% higher at 24,667, aided by a late-session buying surge.

Thursday’s session is critical as traders brace for the expiry of Nifty 50 weekly contracts. The broader sentiment remains cautious with mixed global cues.

The Dow Jones Industrial Average underperformed overnight, with futures pointing to a nearly 200-point decline, while Asian markets opened in the red. The GIFT Nifty is currently indicating a mildly positive open, up around 40 points.

Market action will also be influenced by earnings reactions, with companies such as Eicher Motors, Tata Power, Lupin, and Muthoot Finance in focus following their quarterly results. Stocks like Wendt and SBI are also on traders’ radars.

n early trade, the Sensex dropped over 200 points and the Nifty slipped below 24,650, as investors weigh global headwinds and domestic triggers.

Markets Enter Consolidation Mode; Midcaps and Defence Stocks in Focus

Indian equities appear poised for a near-term consolidation, with mid and smallcap stocks continuing to outperform their largecap peers. The momentum in largecaps, previously driven by strong foreign institutional investor (FII) inflows, may start to ease amid shifting global dynamics.

With the U.S. and China moving toward a trade détente, market watchers are not ruling out a tactical shift — a potential ‘Sell India; Buy China’ strategy by global funds. Such a trend, if it materialises, could put pressure on largecap stocks while sustaining the outperformance in broader markets, despite elevated valuations in the mid and smallcap segments.

Defence Stocks See Renewed Interest

Defence-related counters saw renewed buying interest after Prime Minister Narendra Modi publicly lauded the performance of indigenous defence systems. This comes as a fresh boost to investor sentiment toward the sector, already buoyed by a growing export pipeline.

While the structural outlook for defence exporters remains positive over the medium to long term, analysts warn that current valuations leave little margin for error, and suggest a measured approach.

India Approves Semiconductor JV in Strategic Push

In a significant move to bolster India’s semiconductor ecosystem, Union Electronics and IT Minister Ashwini Vaishnaw announced Cabinet approval for a ₹3,706 crore joint venture between HCL Group and Foxconn.

The OSAT (Outsourced Semiconductor Assembly and Testing) facility will be established in Jewar, Uttar Pradesh. It is expected to employ 2,000 people and will have the capacity to assemble 20,000 wafers and produce 36 million units per month, once operational.

Wall Street Mixed as Trade Truce Spurs Tech Rally

Global equities offered mixed cues on Thursday morning. S&P 500 futures slipped 0.2% in Tokyo trade, while Japan’s Topix and Australia’s ASX 200 also registered declines. Euro Stoxx 50 futures were similarly down 0.2%.

In contrast, U.S. markets ended Wednesday on a positive note, with the S&P 500 gaining 0.10% to 5,892.58, extending a strong start to the week that pushed the index into positive territory for the year.

The Nasdaq Composite rose 0.72% to 19,146.81, buoyed by a tech rally, while the Dow Jones Industrial Average slipped 0.21%, closing at 42,051.06.

Chipmakers led the tech surge. Nvidia advanced over 4% following news it will supply 18,000 of its high-end AI chips to Saudi Arabia. AMD also rose more than 4% after announcing a $6 billion share buyback plan.

So far this week, the S&P 500 has gained over 4%, the Dow is up nearly 2%, and the Nasdaq has rallied more than 6%. Risk appetite has been fuelled by a thaw in U.S.–China trade tensions, with both nations agreeing to roll back tariffs.

The U.S. has cut levies on Chinese goods to 30%, while China has lowered its duties on U.S. imports to 10%, reversing threats of tariff hikes exceeding 100% issued just last month.

Dollar Weakens on Softer Inflation and Currency Talks

The US Dollar Index (DXY) eased to around 100.60 in Wednesday’s trade, weighed down by lower-than-expected inflation data and reports of ongoing currency discussions between the US and South Korea.

The cooling in inflation figures has sparked renewed debate over the Federal Reserve’s next policy move, while bilateral talks with Seoul added further pressure on the Greenback.

Domestic Gold Futures Slide as Global Cues Weigh

In India, gold futures continued their downward trajectory on Thursday. The MCX Gold June 5 contract was trading 0.70% lower at ₹91,615 per 10 grams as of 9:10 AM. This follows a sharp 1.5% decline in the previous session, where prices closed at ₹92,265 per 10 grams. Over the past week, gold has lost more than 3% on the MCX platform.

Easing concerns over the US-China trade standoff and reduced tensions between India and Pakistan have softened demand for safe-haven assets. Domestic prices are also being pressured by diminished expectations of rate cuts from the US Federal Reserve following stable inflation readings.

Also Read : Stocks to Watch Today, 15th May 2025

Oil Retreats After Surprise Inventory Build

Crude oil prices edged lower on Wednesday following an unexpected rise in US stockpiles, reviving concerns about oversupply. Brent crude futures settled at $66.09 per barrel, down 54 cents or 0.81%, while West Texas Intermediate (WTI) slipped 52 cents to $63.15.

Both benchmarks had hit two-week highs in the previous session, buoyed by temporary tariff rollbacks between the US and China. However, fresh data from the Energy Information Administration showed US crude inventories rose by 3.5 million barrels to 441.8 million last week, reversing bullish sentiment.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) trimmed its forecast for supply growth from non-OPEC+ producers, including the United States, signalling a more cautious stance amid rising output from member states and allies.

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