The Indian stock market glimmered in the green for a second straight session on May 26 as strong buying across automobile and information technology names lifted sentiment.
Investors also rejoiced over recent buzz about India surpassing Japan as the world’s fourth largest economy. In addition, the Reserve Bank of India’s record dividend payout, which is expected to ease fiscal pressure, also pleased investors.
Benchmark indices opened on a buoyant note, extending their upward trajectory for the second consecutive session. The Nifty 50 opened on a firm footing, surging during the initial hour to register an intraday high of 25,079.
However, profit booking at elevated levels led to some paring of gains, with the Nifty 50 eventually settling just around the psychological 25,000 mark. The Nifty concluded the session with a gain of 148 points, or 0.6%, at 25,001.15 while the Sensex was up 455.37 points or 0.56% at 82,176.45.
In the broader markets, the Nifty Midcap 100 rose by 0.70 percent, while the Smallcap 100 edged up 0.4 percent, reflecting a largely positive sentiment across segments.
Among major movers, shares of Eternal Ltd (formerly Zomato) tumbled nearly 5% to its day’s low. The decline came amid reports suggesting potential passive outflows of up to $840 million, as both MSCI and FTSE Russell are expected to lower the stock’s weight in their global indices, according to IIFL Capital Services.
On the upside, Tata Motors climbed 1.5% after US President Donald Trump postponed a proposed 50 percent tariff on European Union imports to 9 July. The move offered much-needed relief to its subsidiary Jaguar Land Rover, which had previously paused US shipments due to ongoing trade uncertainty.
On the technical front, Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty’s continued upward trajectory reflected underlying market strength. “The index is maintaining a classic higher top–higher bottom pattern on the daily chart, which signals a healthy trend. Any short-term pullbacks from here should be viewed as buying opportunities,” he said.
De further added that the RSI has re-entered bullish territory and is now nearing a potential breakout from consolidation. “In the near term, the Nifty looks poised to extend its rally, with an upside potential towards the 25,300 to 25,350 zone. On the downside, immediate support is seen around the 24,800 mark,” he observed.
Looking ahead though, Prashanth Tapse, Senior VP (Research), Mehta Equities believes focus will remain stuck on the minutes of the latest FOMC meeting and Fed Chairman's comment on it, along with the domestic Q4 GDP numbers, due to be announced on Friday.
