Rebound continues: Markets extend gains in May; small, midcaps shine

The Indian stock market continued its upward trajectory in May, with benchmark Nifty and Sensex indices each gaining nearly 2 per cent. The broader market segments outperformed significantly, with the Nifty Midcap 100 index surging 6.1 per cent and the Nifty Smallcap 100 index rallying 8.7 per cent. These gains have enabled most key indices to fully recover from the losses incurred during the first two months of the year.  India's market capitalisation saw an increase of  ₹19.4 trillion to reach ₹445.5 trillion. From March onwards, the market experienced a remarkable ₹61 trillion jump after a ₹58 trillion erosion in the initial two months of calendar year 2025. This rebound has been largely driven by favourable institutional investor flows. 

 

  In May alone, foreign portfolio investors (FPIs) purchased shares worth nearly ₹20,000 crore, while mutual funds (MFs) invested over ₹47,000 crore.