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Below the Quote on Daily Market Commentary for 25th May 2026 By Siddhartha Khemka, Motilal Oswal Financial Services Ltd

Nifty is expected to continue its gradual upmove provided crude oil prices remain soft, the rupee sustains its recovery from record lows and geopolitical tensions continue to ease. Indian benchmark indices opened sharply higher and held gains through the session, with the Nifty 50 ending up 1.3%, while Midcap and Smallcap indices gained 0.9% and 1.4%, respectively. The rally was primarily driven by a sharp fall in Brent crude prices, which declined nearly 6% to around USD 95 per barrel — slipping below the USD 100 mark for the first time in over two weeks amid hopes of a resolution to the Iran conflict. Reflecting this, the rupee appreciated 40 paise to 95.20 against the US dollar, while India VIX declined over 6% to 16.7, indicating easing volatility and improving investor confidence. Sectorally, Automobile, Banking and Financial stocks led the gains. Bank stocks rose up to 4% during the session as softer crude prices strengthened expectations of interest rate stability and lower inflation risks. Auto stocks also gained on hopes that lower fuel prices could support demand and ease input cost pressures. Sentiment was further supported after US Secretary of State Marco Rubio stated that the US and India were close to finalising an interim trade agreement, with the US Trade Representative expected to visit India soon. Overall, the simultaneous easing in crude prices, rupee pressure and geopolitical concerns provided a strong boost to risk appetite and drove broad-based participation across the market.

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