MarketSmith Analyst Raja Venkatraman Identifies Five Stocks to Watch for May 25

Indian Stock Market Closes Higher Amid Crude Oil Price Correction

The Indian stock market closed higher on Friday, 24 May, driven by gains in banking heavyweights such as ICICI Bank, HDFC Bank, and Axis Bank. Despite the positive sentiment, the upside remained limited due to elevated crude oil prices and mounting inflation concerns.

The benchmark Sensex advanced 232 points, or 0.31%, to settle at 75,415.35, while the Nifty 50 gained 65 points, or 0.27%, to close at 23,719.30. Broader markets delivered a mixed performance, with the BSE 150 Midcap index edging up 0.11%, while the BSE 250 Smallcap index declined 0.26%.

The Reserve Bank of India intervened to support the rupee, which has been hovering near record lows, prompting some economists to anticipate a potential interest rate hike in the coming month to stabilise the currency. On a weekly basis, seven of the 16 major sectoral indices ended in the green. The broader midcap and smallcap indices rose 1.4% and 0.4%, respectively.

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Information technology stocks emerged as the top performers, climbing 4.3% as investors returned to the sector after a prolonged selloff driven by concerns over AI-related disruption. Financial stocks also posted gains, with Axis Bank and ICICI Bank rising 3.3% and 1.6%, respectively.

Analysts noted that investors are actively rotating between sectors as they assess the impact of persistently high energy prices on economic growth and corporate earnings. Global sentiment improved after both the United States and Iran signaled progress towards reopening the Strait of Hormuz, raising hopes of a gradual easing in regional tensions and reducing immediate concerns around global energy supply disruptions.

However, remarks from Donald Trump stating that the US is "not rushing" to secure a peace agreement with Iran reinforced the view that negotiations may remain prolonged and complex, keeping broader uncertainty elevated. Crude oil prices have corrected sharply and are currently trading in the $91–92 per barrel range, marking a significant pullback from recent highs above the $100–105 zone.

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

The decline in oil prices is being viewed as a meaningful positive for India's macroeconomic outlook, as softer energy prices help ease concerns around inflation, import costs, and corporate profitability. Stocks to buy today include:

• Sheela Foam Ltd: Buy above ₹641, stop ₹608, target ₹710
• Max Financial Services Ltd: Buy above ₹1,685, stop ₹1,620, target ₹1,825
• Poly Medicure Ltd: Buy above ₹1,605, stop ₹1,525, target ₹1,760
• Meesho Limited: Buy at ₹197–200, target price ₹230 in two to three months, stop loss ₹187
• Dynamatic Technologies Limited: Buy at ₹11,058–11,226, target price ₹12,900 in two to three months, stop loss ₹10,500