Indian Stocks Experience Mixed Trading: HFCL, Adani Power, Eicher Motors, OLA, Tata Motors, HPCL Show Significant Gains

Indian Markets Surge as Oil Prices Plummet

The Indian markets concluded Monday's trade, May 25, with solid gains as both benchmark indices surged over 1% after a sharp decline in oil prices, driven by optimism surrounding a potential US-Iran peace deal. This development brought much-needed relief and optimism to Dalal Street.

The Nifty 50 jumped 1.4% to 24,050, marking its biggest single-day gain in two weeks. The broader markets mirrored the same trend, with the Nifty Midcap 100 advancing 1% and the Nifty Smallcap 100 settling with an even stronger gain of 1.5%.

Market Performance

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Risk-on sentiment improved after both the United States and Iran signalled progress towards reopening the Strait of Hormuz, which has remained effectively shut since late February. The potential easing of the nearly three-month-long tensions in the Middle East lifted hopes that crude supply disruptions could gradually ease.

That pushed crude oil prices lower in trade, with Brent crude futures falling 5% to around $98 per barrel, extending last week's decline. US President Donald Trump said on Saturday that a deal with Iran over the conflict, including reopening the Strait of Hormuz, had been "largely negotiated" following discussions with Israel and other allies in the region.

However, Trump added that Washington would keep its blockade of the Strait of Hormuz in place until a formal agreement is reached, stating that he would not "rush" into a deal.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Falling crude prices boost PSU, OMC stocks as yields on India's 10-year G-Sec hovered near 7%, retreating to a more than one-week low amid easing crude oil prices. All 12 constituents of the Nifty PSU Bank closed in the green, with Union Bank of India topping the chart after surging 5%. It was followed by Bank of India, Canara Bank, Punjab National Bank, UCO Bank, Bank of Baroda, and State Bank of India, all rising between 2.2% and 4.4%.

The decline in crude oil prices also boosted oil marketing companies (OMCs), with all three major players, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Indian Oil Corporation, ending with gains of over 3%. Among auto stocks, Eicher Motors jumped 6.2% to ₹7,141 apiece after the company's March quarter earnings came broadly in line with estimates, while Ashok Leyland shares closed 3.7% higher at ₹164 apiece.

Amara Raja Energy & Mobility witnessed renewed buying interest, with the stock spiking 8% to ₹886 apiece. Ola Electric Mobility settled at ₹37.88, marking a 5.22% jump from Friday's close. Extending its rally for the fourth straight session, HFCL shares advanced another 10% to settle at a fresh record high of ₹163 apiece. Today's rally has pushed the stock's month-to-date gains to 40%, building on a strong 71% surge in April.

Four Adani Group stocks, Adani Power, Adani Enterprises, Adani Green Energy, and Adani Energy Solutions, closed with gains ranging between 2.7% and 6.4%.