Post-Market Update: Market Closing today (May 12, 2025)

Nifty Marks Highest Closing of CY2025, Driven by IT Stocks; Nifty IT Index Sees Biggest Gain Since 2020

Nifty and Sensex closed at multi-month highs, driven by strong buying in IT stocks. The Nifty IT index surged by approximately 6.7%, marking its highest single-day move since 2020. 

It was a spectacular Monday for the Indian equity benchmark indices, with both the Sensex and Nifty closing significantly higher—by 3.74% and 3.82%, respectively. This marked a multi-month high for both indices. Notably, the Nifty posted its best single-day gain since February 2021, surging by 4.74%. With this sharp rally, the Nifty closed above the 24,900 level for the first time since October 2024.

Key Pullers and Draggers

The key drivers of the index gains were:

• Infosys: +118.09 points
• ICICI Bank: +112.10 points
• HDFC Bank: +80.08 points

On the other hand, profit booking was observed in:

• Sun Pharma: -17.11 points
• IndusInd Bank: -5.23 points

Nifty Bank Index Keeps Pace

The Nifty Bank index mirrored the performance of the broader market, registering a gain of 3.34%, adding 1,787.60 points to its tally on May 12, 2025. The banking sector kept pace with the frontline indices, contributing significantly to the overall market performance.

India VIX Drops Substantially

India VIX, which measures market volatility, saw a sharp drop of 15%, settling around the 18.4 level. This decline in volatility suggests a reduction in market uncertainty.

Factors Driving the Rally in Indian Markets

The strong rally in Indian equities can be attributed to several key factors:

1. Easing Geopolitical Tensions: A reduction in tensions between India and Pakistan contributed to a more stable environment for Indian markets.
2. Progress in US-China Trade Talks: The US Treasury Department announced that both countries would reduce tariffs for 90 days, providing a boost to global risk sentiment and indirectly benefiting Indian markets.

This announcement was particularly beneficial for Indian IT companies, which have substantial business dealings with the US. The potential easing of trade war concerns alleviated market fears, especially in the IT sector.

Indian IT Stocks Lead the Way

The Nifty IT index surged by approximately 6.7%, marking its highest single-day move since 2020. This rally was driven by optimism surrounding the easing of trade tensions, which had previously put pressure on the sector. The overall sectoral indices ended in the green, reflecting broad-based market strength.

Broader Market Outperformance

The broader market indices outperformed the benchmark indices on Monday, May 12, with both the Nifty Midcap 100 and Small-cap 100 gaining over 4%. Notably, the Nifty Small-cap 100 index recorded its best single-day performance since 2022. As a result, the market breadth was firmly in favor of the bulls, signaling strong investor sentiment across various market segments.

Disclaimer: The article is for informational purposes only and not investment advice.