Nifty reclaims 24850 level after strong morning surge



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Market Overview



Nifty opened with a 30-point gap up at 24,639.50 and quickly rallied nearly 200 points to test the 24,825 level within the first hour. The index then dipped to 24,750 before spiking to 24,900 by 11 AM. For the remainder of the day, it consolidated between 24,830 and 24,880, eventually closing at 24,853.15, up 0.98%.

Strong global cues and a pullback in bond yields supported today’s positive sentiment. However, rising macroeconomic uncertainty remains a concern. Investors are closely watching developments in the India-U.S. trade deal, while the ongoing earnings season continues to shape near-term market direction.

Broader Market Performance:

Broader markets had a strong session today. Of the 2,947 stocks traded on the NSE, 1,731 advanced, 1,132 declined, and 84 remained unchanged.

Sectoral Performance:

The top-gaining sector for the day was Nifty FMCG, which rose by 1.63%, while the top losing sector was Nifty Pharma, declining by 0.41%. Out of the 12 sectors listed, 11 sectors closed in the green, indicating broad-based market strength, while only 1 sector closed in the red.









Note: The above numbers for Commodity futures were taken around 5 pm. Here’s the trend of FII-DII activity from the last 5 days:



Change in OI for the day



The following is the change in OI for Nifty contracts expiring on 29th May:

  • The maximum Call Open Interest (OI) is observed at 25,000, followed closely by 24,900, suggesting strong resistance at these levels.
  • The maximum Put Open Interest (OI) is observed at 24,500, followed closely by 24,800, suggesting strong support at 24,700 to 24,600 levels.

Note: OI is subject to multiple interpretations, but generally, an increase in the call OI indicates resistance in a falling market, and an increase in the put OI indicates support in a rising market.

Source: Sensibull


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What’s happening in India

Oil India Limited (OIL) reported its highest-ever crude oil and natural gas production in FY25, with a 2.95% and 2.2% increase over FY24, respectively. The company posted a profit after tax of ₹6,114.19 crore, up 10.13% from the previous year, and recommended a final dividend of ₹1.50 per share. Dive deeper

India’s net FDI dropped 96% to $353 million in FY25 due to higher repatriation and increased outward FDI by Indian companies. However, gross FDI remained strong at $81 billion, with key inflows into manufacturing and financial services. Outward FDI rose 75% to $29.2 billion. Dive deeper

India plans to allow U.S. firms to bid for $50 billion worth of government contracts, following a trade deal with the U.K. The move will gradually open federal procurement to foreign firms, excluding state and local contracts. Dive deeper

Adani Group plans to invest Rs 1 lakh crore in Northeast India over the next 10 years, focusing on hydro power, infrastructure, and local community engagement. The investment aims to create jobs and boost economic opportunities. Gautam Adani highlighted the region’s strategic importance for India’s growth. Dive deeper

Mamaearth’s parent company, Honasa Consumer, reported a 13.3% rise in Q4 revenue to Rs 533.5 crore, exceeding estimates. Despite a 17.8% decline in net profit, the stock surged by over 17%, reaching a six-month high. Dive deeper

ITC’s Q4 adjusted PAT rose 3% YoY to Rs 5,155 crore, driven by strong performance in the FMCG-Cigarettes and Agri Business segments. Revenue grew 10% to Rs 20,376 crore, with notable growth in FMCG-Cigarettes and Agri Business, though FMCG-Others and Paperboards saw profit declines. Dive deeper

Aegis Vopak Terminals plans to raise ₹2,800 crore via an IPO to reduce debt and fund expansion, including capacity growth at Mangalore and Pipavav ports. The company saw a 59% revenue increase in FY24 and aims to improve utilization and profit. Post-IPO, promoter holdings will reduce from 97.4% to 87%. Dive deeper

Rail Vikas Nigam Ltd. (RVNL) targets generating Rs 20,000-22,000 crore revenue in FY26, aiming for 10-15% growth. The company plans to improve margins from 5% to 6.5-7% this year, with a goal of 8% in FY27. RVNL’s order book stands at Rs 97,000-98,000 crore, with diversified projects in metro, energy, and infrastructure sectors. Dive deeper

Adani Green Energy’s promoter, Ardour Investment Holding Ltd., converted 54.7 lakh warrants worth ₹607.7 crore into equity, increasing the promoter group’s shareholding from 61.6% to 61.73%. This follows a preferential allotment of convertible warrants in January 2024, with the final conversion set to occur by July 2025. Dive deeper

Airtel Payments Bank reported a 138% YoY profit growth to ₹26 crore for Q4 FY25, driven by the success of its ‘Safe Second Account’ and growth in urban and rural solutions. Q4 revenue rose 34.7% YoY to ₹726 crore, while FY25 saw a 47.5% increase in annual revenue to ₹2,709 crore. Dive deeper

Ola Electric plans to raise ₹1,700 crore through debt to strengthen its finances amid market share decline and regulatory challenges. The funds will support strategic initiatives and internal restructuring. The company aims to secure capital via loans or non-convertible debentures. Dive deeper

Gokaldas Exports reported a 19% rise in Q4 PAT and 21% annual profit growth, driven by acquisitions and revenue expansion. EBITDA surged 58%, despite US tariff uncertainties. The company is optimistic about opportunities from the India-UK FTA in FY2026. Dive deeper

Emcure Pharmaceuticals reported a 64% YoY jump in net profit to Rs 189 crore for Q4 FY25, with revenue rising to Rs 2,116 crore. Margins expanded to 19% from 17.53%. The company also recommended a final dividend of Rs 3 per share. Dive deeper

Shares in India’s solar sector dropped after the US House passed a tax bill reducing clean energy subsidies. This raised concerns about the potential impact on global demand for solar products. Indian solar exporters with heavy international exposure were particularly affected. Dive deeper

Jindal Polyfilms’ Nashik plant is experiencing a fire that has disrupted approximately 90% of production. The company is taking precautions to prevent the fire from reaching propane gas tanks, while also assessing the damage and investigating the cause. Three employees were injured, and the plant is covered by insurance. Dive deeper

HFCL reported a Q4 net loss of ₹81.4 crore, primarily due to weak demand for optical fibre cables. Despite this, the company expects 25-30% revenue growth in FY26, driven by full capacity utilization and contributions from its defense segment. Dive deeper

Tata Steel has unveiled the second phase of its Kalinganagar plant, increasing its crude steel capacity to 8MT with an investment of ₹27,000 crore. The expansion will focus on manufacturing advanced high-strength steel for sectors like automotive and defence. Dive deeper

Grasim Industries reported a 9% YoY rise in Q4FY25 net profit to ₹1,496 crore, driven by strong performance in building materials, chemicals, and financial services. Revenue increased 17% YoY to ₹44,267 crore. The company has proposed a ₹10 per share dividend for FY25. Dive deeper

NRI deposit inflows to Indian banks hit an 11-year high of $16.2 billion in FY25, driven by higher interest rates and rupee depreciation. Both dollar (FCNR(B)) and rupee (NRE(RA)) deposits saw significant growth. Dive deeper

ITC Hotels signed a Welcomhotel in Vrindavan, Uttar Pradesh, marking the brand’s entry into the market. The hotel, located 90 km from Noida International Airport, will feature 120 rooms. This move strengthens ITC Hotels’ presence in Uttar Pradesh, adding to its existing six hotels. Dive deeper


What’s happening globally

Brent crude oil futures fell toward $64 per barrel, driven by fears of an OPEC+ production hike and rising US crude stockpiles. Oversupply concerns were compounded by increasing storage demand, while markets watched US-Iran nuclear talks and potential Israeli strikes on Iran. Dive deeper

Gold rose to $3,330 per ounce, driven by safe-haven demand amid US fiscal concerns, including the $4 trillion cost of the new tax bill and Moody’s downgrade of the US credit rating. Dive deeper

The US 10-year Treasury yield held at 4.53% after easing from three-month highs. The decline followed concerns over President Trump’s tax-and-spending bill and Moody’s downgrade of the US credit rating. Dive deeper

The People’s Bank of China injected CNY 500 billion into financial institutions via a one-year Medium-Term Lending Facility (MLF) on May 23rd, resulting in a net injection of CNY 375 billion after maturing funds. It also switched to a multiple-price bidding method for MLF operations. Dive deeper

Japan’s annual inflation rate remained at 3.6% in April 2025, with food prices rising the least in four months. Core inflation rose to a 2-year high of 3.5%, driven by higher costs in electricity, gas, and housing. The CPI increased by 0.1% month-on-month. Dive deeper

Singapore’s annual inflation held at 0.9% in April 2025, slightly above expectations. Food prices rose, while housing and transport costs moderated. Core inflation reached a three-month high of 0.7%. Dive deeper

Germany’s economy grew by 0.4% QoQ in Q1 2025, revising up from an initial 0.2% rise. Household consumption and net trade boosted GDP, with exports up 3.2%. However, the economy remained stagnant YoY. Dive deeper

Taiwan’s industrial production rose 22.31% YoY in April 2025, the strongest growth since February 2020, driven by manufacturing (23.68%) and mining (4.13%). Monthly, production increased 8.81%, recovering from a decline in March. Dive deeper

Nissan is considering a sale and leaseback of its Yokohama headquarters, valued at over 100 billion yen, as part of its restructuring. The move could help finance factory closures. Dive deeper

Nuclear stocks surged after reports that U.S. President Trump plans executive orders to boost the nuclear energy industry. The orders aim to streamline reactor approvals and improve fuel supply chains. Uranium miners and nuclear utilities saw significant gains. Dive deeper

China lowered deposit rate ceilings to protect banks’ profits and curb excessive savings. The decision follows recent cuts in benchmark lending rates as part of a broader strategy to stabilize the economy. Dive deeper

Disney has filed a lawsuit to stop YouTube from hiring Justin Connolly as its global head of media and sports, alleging breach of contract. Connolly, who had a contract with Disney until 2027, was appointed by YouTube to manage its media and sports relationships. Dive deeper


Management chatter

In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.


Tuhin Kanta Pandey, Chairman, SEBI on NSE IPO and regulatory updates

“All the outstanding issues [regarding NSE’s IPO] will be resolved, and we will move forward. I can’t give you a timeline, but… we should soon be doing it.”

“If there are any egregious violations by anyone under SEBI’s remit [on IndusInd], we will look into that.”

“We intend to simplify regulations, remove redundant provisions, and facilitate ease of compliance, while ensuring high market integrity and robust investor protection.” - Link

Suresh Sethi, CEO, Protean eGov Technologies, on core business outlook and PAN services

“Our core business is expected to grow at a 10–12% CAGR.”

“We were looking at PAN 2.0 as an incremental opportunity. The existing business stands strong as is.”

“The PAN market is not saturated—penetration is around 35–40%, and we’ve improved our market share by 5% over the last year.” - Link

Ritesh Tiwari, CFO, Hindustan Unilever, on rural demand and growth bets

“Rural consumption habits are dramatically changing.”

“Our profit straddles across the price pyramid, from premium to mass. This helps us compete across channels and competition.”

“We take large brands and enter into more demand spaces like Vaseline is now in the sun care space.”

“We are bringing in brands from our global parent that work in India.”

“Looking at headline commodities like crude, they’ve also come off peaks.”

“We believe the first half of fiscal 2026 should be better than the second half of fiscal 2025.”

“Growing rapidly.” (on quick commerce) - Link

Jamie Dimon, CEO, JPMorgan Chase, on the U.S. economy and Trump’s tax bill

“I think they should do the tax bill. I do think it’ll stabilise things a little bit, but it’ll probably add to the deficit.”

“I think the chance of inflation going up and stagflation is a little bit higher than other people think.”

“The U.S. is running the largest trade deficit that we’ve ever had in peacetime, almost 7% of GDP.” - Link


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Calendars

In the coming days, we have the following significant events and corporate actions:






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