Mumbai Stock Market Soars: What’s Fueling the Surge in Sensex and Nifty?

The Mumbai stock market witnessed a significant surge on Monday, with the Sensex and Nifty indices rising over 1%. This increase was fueled by a sharp decline in crude oil prices and positive developments in US-Iran negotiations. Key stocks like Bajaj Finance and HDFC Bank led the gains, while others like Infosys lagged. As global sentiment improves, investors are keenly watching the evolving situation. Read on to learn more about the market dynamics and what this means for investors.

By Narendra Chaudhary May 25, 2026, 16:16 IST

Mumbai's Stock Market Experiences Significant Gains

Mumbai: On Monday, the key equity indices, Sensex and Nifty, experienced a remarkable rise of over 1 percent, spurred by a notable drop in crude oil prices and a positive shift in global market sentiment linked to US-Iran discussions.

The BSE Sensex, comprising 30 stocks, surged by 1,073.61 points, or 1.42 percent, closing at 76,488.96. At its peak during the day, it reached 76,559.07, marking an increase of 1,143.72 points, or 1.51 percent.

Similarly, the NSE Nifty, which includes 50 stocks, climbed 312.40 points, or 1.32 percent, finishing at 24,031.70.

Among the top performers in the Sensex were Bajaj Finance, Larsen & Toubro, HDFC Bank, Eternal, Bajaj Finserv, and Kotak Mahindra Bank.

Conversely, companies like Infosys, Tata Consultancy Services, Sun Pharma, and Hindustan Unilever lagged behind.

Brent crude oil, a global benchmark, plummeted by 5.52 percent, settling at USD 97.82 per barrel.

Significant advancements have been made in US negotiations with Iran regarding the reopening of the Strait of Hormuz. However, Secretary of State Marco Rubio emphasized that President Trump remains cautious and will reject any unfavorable agreements.

"The market's upward momentum is largely attributed to the correction in crude oil prices, coupled with increasing optimism surrounding a potential US-Iran agreement. Global sentiment has improved following reports of progress in reopening the Strait of Hormuz, although the situation remains fluid and unpredictable," stated Vinod Nair, Head of Research at Geojit Investments Limited.

Asian markets also reflected this positive trend, with Japan's Nikkei 225 and Shanghai's SSE Composite indices closing higher. Meanwhile, South Korea and Hong Kong markets were closed for holidays.

European markets were also trading positively.

On Friday, US markets concluded on a high note.

According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 4,440.47 crore on Friday.

In the previous trading session, the Sensex had increased by 231.99 points, or 0.31 percent, to close at 75,415.35, while the Nifty rose by 64.60 points, or 0.27 percent, ending at 23,719.30.