Stock Markets Jump More Than 1% as Crude Oil Falls Below $100 a Barrel

Benchmark equity indices extended their gains on Monday, May 25, 2026, with the Sensex and Nifty rising more than 1% as a sharp fall in crude oil prices and a broad rally in global markets boosted investor sentiment. The positive mood was aided by expectations of progress in U.S.-Iran negotiations, which raised hopes of easing tensions around the Strait of Hormuz, a key route for global oil shipments.

The 30-share BSE Sensex climbed 1,073.61 points, or 1.42%, to close at 76,488.96. During intraday trade, it advanced 1,143.72 points, or 1.51%, to touch 76,559.07. The 50-share NSE Nifty gained 312.40 points, or 1.32%, to settle at 24,031.70. The rally came after a volatile period in energy and equity markets, with falling crude prices providing relief to investors worried about inflation and input costs.

Among Sensex constituents, Bajaj Finance, Larsen & Toubro, HDFC Bank, Eternal, Bajaj Finserv and Kotak Mahindra Bank were the top gainers. On the other hand, Infosys, Tata Consultancy Services, Sun Pharma and Hindustan Unilever were among the laggards, limiting broader upside in some sectors. The market-wide advance reflected strong buying interest in financials and select blue-chip stocks.

Brent crude, the global oil benchmark, dropped 5.52% to $97.82 per barrel, marking the key external factor behind Monday’s market surge. Oil price corrections often support Indian equities by easing concerns over import bills, inflation and corporate costs. The decline also improved sentiment across Asian and European markets, which traded higher through the session.

In overseas developments, U.S. Secretary of State Marco Rubio said on Monday that the United States had made significant progress in negotiations with Iran to reopen the Strait of Hormuz, though President Donald Trump remained cautious and would not accept a poor deal. The comments fueled hopes that geopolitical risks affecting oil supply could ease, although market participants remained wary about the durability of the optimism.

Vinod Nair, Head of Research at Geojit Investments Limited, said markets saw strong positive momentum as crude prices corrected and expectations of a potential U.S.-Iran deal increased. He noted that global sentiment improved on reports of progress toward reopening the Strait of Hormuz, while also cautioning that credibility remains uncertain because of frequent shifts in the situation.

Asian markets ended on a firm note, with Japan’s Nikkei 225 and China’s SSE Composite closing higher. Markets in South Korea and Hong Kong were shut for holidays. European equities were trading in positive territory, while U.S. markets had ended higher on Friday, May 22, 2026, providing additional support to risk appetite.

Despite the strong domestic and global cues, foreign institutional investors continued to sell Indian equities, offloading shares worth ₹4,440.47 crore on Friday, May 22, 2026, according to exchange data.