Indian Stock Market Rally: Sensex Gains 295 Points, Nifty 50 Surpasses 24,450 on Strong FII Inflows and Crude Price Dip

Indian stock markets end higher as Sensex rises 295 points and Nifty 50 crosses 24,450 amid FII inflows and falling crude oil prices. Check key movers and market outlook.

May 5, 2025 - 19:40
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Indian Stock Market Rally: Sensex Gains 295 Points, Nifty 50 Surpasses 24,450 on Strong FII Inflows and Crude Price Dip
Indian Stock Market Rally: Sensex Gains 295 Points, Nifty 50 Surpasses 24,450 on Strong FII Inflows and Crude Price Dip

Indian Stock Market: Sensex Rises 295 Points, Nifty 50 Tops 24,450 Amid FII Inflows, 

Crude Price Fall

The Indian equity market continued its upward trajectory today, with the Sensex rising 295 points to close at 81,430 and the Nifty 50 crossing the crucial 24,450 mark, settling at 24,463. A combination of foreign institutional inflows, declining crude oil prices, and stability in global markets created a favorable backdrop for domestic investors.

This marks the third consecutive day of positive momentum, reinforcing the market’s resilience despite global macroeconomic concerns and upcoming election-related volatility. The broader indices mirrored the bullish sentiment, with significant contributions from banking, auto, and FMCG stocks.


Key Highlights

  • Sensex ends 295 points higher at 81,430

  • Nifty 50 breaches 24,450, ends at 24,463

  • FIIs turn net buyers with ₹3,175 crore inflow

  • Brent crude slips below $81 per barrel

  • Rupee holds firm at 82.95 per USD

  • Positive cues from Asian peers and steady bond yields boost sentiment


Market Drivers: What Moved the Indices?

 1. FII Inflows Boost Market Confidence

After weeks of net selling, Foreign Institutional Investors (FIIs) made a notable return with net inflows worth ₹3,175 crore into Indian equities. This turnaround was primarily driven by:

  • A cool-off in US bond yields

  • Stable US inflation data

  • India’s continued macroeconomic resilience

The return of foreign money reinforces global investors’ confidence in India as a relatively stable and promising investment destination in Asia.


 2. Crude Oil Prices Ease, Supporting Sentiment

Global crude oil prices fell below $81/barrel amid rising inventories in the US and reduced fears of supply disruption in the Middle East. The drop in prices alleviated concerns about India's import bill and inflation trajectory, which typically suffer when oil prices spike.

Lower crude costs are especially bullish for aviation, paints, logistics, FMCG, and auto sectors due to lower input costs.


3. Global Markets Offer a Breather

Asian markets, including Nikkei, Hang Seng, and Straits Times, closed higher, while European indices opened with mild gains. Investor appetite was supported by:

  • China's better-than-expected services PMI

  • Cooling inflation in the Eurozone

  • Expectations of no further rate hikes by the US Fed in the near term

These cues helped improve investor sentiment back home, leading to widespread buying.


Sector-Wise Performance

Sector Performance Top Gainers Top Losers
Banking Strong HDFC Bank, Axis Bank -
Auto Bullish Bajaj Auto, Mahindra & Mahindra Hero MotoCorp (flat)
FMCG Positive ITC, Britannia Dabur (mildly down)
IT Stable TCS, Wipro Infosys (slightly down)
Realty Mixed DLF, Godrej Properties Oberoi Realty
Pharma Neutral Sun Pharma Dr. Reddy’s (marginal loss)

Nifty 50 Top Gainers & Losers

Top Gainers

  • HDFC Bank: +2.9%

  • Bajaj Auto: +2.4%

  • Mahindra & Mahindra: +2.1%

  • ITC: +1.8%

  • Axis Bank: +1.7%

Top Losers

  • Cipla: -0.6%

  • Hindalco: -0.4%

  • Dr. Reddy’s: -0.3%


Market Sentiment: Retail Participation Rises

With elections nearing and broader indices moving higher, retail investors have increased participation in momentum stocks, particularly in:

  • Defense PSUs

  • Railway-related companies

  • Battery and EV-related stocks

Many small- and mid-cap names witnessed renewed buying as confidence returns to the broader markets.


Institutional Activity

Type Net Value (₹ Cr)
FIIs (Buyers) +3,175
DIIs (Sellers) -1,890

While domestic institutional investors booked profits selectively, foreign investors provided significant support, helping the indices end with strength.


Expert Opinions

Anand Rathi Securities:
"The market remains structurally positive, supported by healthy macroeconomic fundamentals and domestic inflows. With crude correcting and inflation under control, we expect Nifty to maintain an upward bias."

Motilal Oswal:
"Retail optimism and earnings momentum could propel Nifty toward 24,700 in the near term, provided global risks stay muted."


Technical Outlook

  • Nifty Support: 24,300

  • Nifty Resistance: 24,700

  • Sensex Support: 80,800

  • Sensex Resistance: 82,000

On the technical front, momentum indicators remain positive, and the Nifty's ability to sustain above 24,400 levels signals short-term bullishness.


Outlook for the Coming Days

Investors will now focus on:

  • Upcoming Q1FY26 earnings results

  • India’s IIP and CPI inflation data

  • US Fed’s next interest rate direction

  • Crude oil inventories and global growth forecasts

Domestic developments like election outcomes and policy commentary will also become crucial over the next few weeks.


What Should Investors Do?

For Long-Term Investors:

  • Stay invested in fundamentally strong companies

  • Add on dips in large-cap leaders from banking, FMCG, and auto

  • Avoid overexposure to highly volatile or overvalued midcaps

For Traders:

  • Look for sectoral breakouts, especially in banking and auto

  • Maintain tight stop-losses in highly volatile stocks

  • Watch for FIIs’ continued return for further strength


The Indian stock market ended on a buoyant note today, powered by strong foreign inflows, stable macro indicators, and falling crude prices. The bulls took charge as Sensex surged by 295 points and Nifty confidently climbed past 24,450. While global factors continue to hold sway, India’s internal fundamentals remain encouraging.

However, with elections on the horizon and global uncertainties always looming, cautious optimism remains the best strategy. Investors should balance aggression with defense, and always invest with a long-term view rooted in quality and consistency.


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