Sensex zooms 1,200 pts, Nifty hits seven-month high on India-US trade deal hopes; auto, metal, realty stocks rally

Hero MotoCorp, JSW Steel, Shriram Finance, Tata Motors, and Trent were the top gainers on the Nifty.

In a striking reversal, bulls made a powerful comeback on Dalal Street, propelling the Nifty past the 25,000 mark for the first time since October 2024, ending a 141-session wait. The sharp surge was driven by strong gains in auto, IT, and metal stocks, adding a massive Rs 4.72 lakh crore to investors’ wealth on May 15 alone. Furthermore, in Doha, US President Donald Trump said India had offered a zero-tariff trade deal to the United States, boosting the sentiment further.

At close,  the Sensex was up 1,200.18 points or 1.48 percent at 82,530.74, and the Nifty was up 395.20 points or 1.60 percent at 25,062.10. About 2513 shares advanced, 1,300 shares declined, and 139 shares unchanged.

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"The earnings have been largely in line with expectations across key sectors like banking, auto, and IT. While there are a few misses, the broader trend is stable. With results mostly behind us, the element of uncertainty has reduced. A normal-to-above-normal monsoon forecast is a big positive for consumption-led sectors. Inflation is under control, and global tariff tensions—particularly those linked to Trump—have eased, creating a calm environment for investors," said Rajesh Palviya, Head of Technical Research at Axis Securities.

Leading the sectoral rally were auto, real estate, and metal indices. Nifty Auto soared 2.08 percent, followed by a 1.76 percent rise in Nifty Realty and a 1.62 percent jump in Nifty Metal. Media and infrastructure stocks also saw heavy buying, with their indices gaining 1.69 percent and 1.49 percent, respectively. The Nifty Bank index rose 1.04 percent, led by private lenders and oil & gas names, both of which rose over 1 percent.

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IT and FMCG stocks posted modest gains of about 1 percent each. The broader Nifty Midcap 100 and Smallcap 100 indices rose 0.7 percent and 0.50 percent, respectively. PSU banks which were the only drag in the afternoon, ended marginally higher. Meanwhile, India VIX declined by 2.03 percent, suggesting a downtick in market volatility.

Palviya pointed out that the rally has been largely underpinned by domestic institutional and retail participation, even when foreign investors were net sellers. "Now that FIIs have turned net buyers, the combined force of all three segments is pushing the market higher. This renewed foreign interest is further boosting confidence among local investors," he added.

Hero MotoCorp surged as much as 6.3 percent after the company laid out a strong growth roadmap for FY26, backed by robust rural demand and upcoming electric vehicle (EV) launches. Hero aims to outpace the industry’s estimated 6–7 percent growth this year, driven by recovery in entry-level two-wheelers and momentum in the 125cc segment. For FY25, the company sold 5.9 million units, up 5 percent from 5.62 million units in FY24.

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Tata Motors rebounded over 4 percent, recovering losses from the previous session when its shares fell 2 percent after a weak Q4 showing. Even though Jefferies cut its EBITDA estimates for FY26 and FY27 by 8–9 percent, it raised EPS estimates by 3–4 percent, suggesting margin resilience going forward.

On the flip side, Persistent Systems slipped 2 percent after a major US client, UnitedHealth Group, announced the abrupt resignation of its CEO and withdrew its FY25 guidance. UnitedHealth, which falls in Persistent’s $100 million-plus revenue bracket, saw its shares plunge over 15 percent overnight, spooking investors.

According to a technical note from Prabhudas Lilladher, the Nifty has near-term support around the 24,450–24,500 band. "A decisive move above 24,800 could set the stage for targets of 25,200 and 25,400 in the coming days," the brokerage said.

The Sensex, which experienced a volatile session, retested the previous day’s low near the crucial 81,000 support zone before staging a strong recovery to trade at 81,330. “The index will need to breach 82,500 to improve the overall bias,” the note added.

Hero MotoCorp, JSW Steel, HCL Tech, Tata Motors, and Trent were among the top gainers on the Nifty. IndusInd Bank was the only stock trading in the red.

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