Sensex jumps 769 pts, Nifty above 24,850; bulls charge with FMCG, IT stocks

Stock Market Closing Bell: Friday, May 23, 2025: Indian equity benchmark indices surged nearly 1 per cent to end the week on a positive note, on the back of gains in IT and FMCG stocks.

 

The Sensex settled at 81,721.63, up 769.09 points or 0.95 per cent, while the Nifty50 closed at 24,853.15, gaining 243.45 points or 0.99 per cent. 

 

On the sectoral front, except pharma, all key sectors contributed to the upmove, with FMCG, financials, and IT emerging as the top gainers. 

Vinod Nair, head of research at Geojit Investments said that the domestic market has recouped nearly half of the week’s losses, supported by gains in FMCG and IT stocks. FMCG benefitted from the early and above-normal monsoon forecast, while IT stocks saw a rebound following a healthy correction.  

 

"Optimism around a potentially record-high dividend from the RBI is boosting hopes for fiscal consolidation, reflected in falling Indian bond yields. Investor attention is further revolving around US-India trade talks and strong domestic macroeconomic indicators. However, recent FII outflows, driven by rising US bond yields amid concerns over mounting US debt, may weigh on the market sentiment," he added.

 

The broader markets also followed the leading indices. The BSE Midcap index settled 0.50 per cent higher, led by gains in Emcure Pharma up 10 per cent, Clean Science and Technology (6.23 per cent), Brainbees Solutions (4.4 per cent), Motilal Oswal Financial Services (3.75 per cent), Star Health (3.43 per cent), New India Assurance (3.28 per cent), and BHEL up 3 per cent.  

 

BSE Smallcap rose 0.45 per cent, led by gains in Cosmo First up 20 per cent, Credo Brands Marketing (20 per cent), Honasa Consumer (20 per cent), Credo Brands Marketing (20 per cent) and HPL Electric & Power up 13.7 per cent.

  Except for Sun Pharma, all other Sensex constituents settled higher rising up to 3.5 per cent. The top gainers included Eternal, Power Grid, ITC, Bajaj Finserv, Nestle India, Axis Bank, Adani Ports and Kotak Mahindra Bank.  

According to Ajit Mishra, senior vice president for research at Religare Broking, the rebound reflects positive sentiment despite mixed global cues, as participants are using dips to accumulate quality stocks across sectors. Technically, the recovery after retesting the crucial short-term support level — the 20-day exponential moving average (20 DEMA) — has eased some pressure.  

 

"The outlook could improve further with renewed strength in the banking and financial sectors after their consolidation phase. We maintain our view of adopting a “buy on dips” strategy, with a focus on selective stock picking, unless the Nifty decisively breaks below the 24,500 mark," Mishra said.