Bulls break free on zero-tariff buzz and oil relief; Nifty ends above 25,050 mark

Domestic equity benchmarks closed with strong gains on Thursday, rising for the second consecutive session, with the Nifty comfortably ending above the 25,050 mark. Volatility was elevated due to the weekly expiry of the Nifty F&O series, but optimism prevailed as all sectoral indices on the NSE ended in the green, led by auto, realty, and metal stocks.

Investor sentiment was lifted by reports of a potential zero-tariff trade deal between India and the U.S. According to the media reports, President Donald Trump on Thursday said that India had proposed eliminating all import duties on American goods, aiming to secure a deal within a 90-day window following his April 9 announcement suspending tariff hikes on key trade partners. The Indian government offered us a deal where basically they are willing to literally charge us no tariff, the media quoted Trump as saying.

Adding to the bullish tone was a sharp decline in crude oil prices amid hopes of a U.S.-Iran nuclear deal, which could ease sanctions and increase global supply. Strong foreign institutional investor (FII) inflows added momentum, while cooling domestic inflation raised expectations of a potential rate cut by the Reserve Bank of India.

The S&P BSE Sensex soared 1,200.18 points or 1.48% to 82,530.74. The Nifty 50 index surged 395.20 points or 1.60% to 25,062.10. In the past two trading sessions, Sensex and Nifty rallied 1.70% and 1.97%, respectively.

Reliance Industries (up 2.07%), ICICI Bank (up 1.88%) and HDFC Bank (up 1.20%) boosted the indices.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.67% and the S&P BSE Small-Cap index added 0.94%.

The market breadth was strong. On the BSE, 2,640 shares rose and 1,327 shares fell. A total of 147 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 1.93% to 16.89.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.13% to 6.329, compared with the previous close of 6.337.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.4750, compared with its close of 85.3250 during the previous trading session.

MCX Gold futures for the 5 June 2025 settlement shed 0.17% to Rs 91,111.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.27% to 100.60.

The United States 10-year bond yield declined 0.24% to 4.517.

In the commodities market, Brent crude for June 2025 settlement fell $2.23 or 3.37% to $63.86 a barrel.

Global Markets:

The US Dow Jones index futures were currently down by 158 points, signaling a negative opening for US stocks today.

Most European shares declined on Thursday as investors digested earnings updates from a number of companies across the continent.

The U.K. economy grew 0.7% in the first quarter of 2025, according to a preliminary estimate from the U.K.'s Office for National Statistics. The country's gross domestic product (GDP) grew by 0.6% in the first quarter, a significant improvement from the 0.1% growth in the fourth quarter and zero growth in the third quarter.

The Office for National Statistics (ONS) reported that the first-quarter growth was largely driven by a 0.7% increase in the services sector. Additionally, production grew by 1.1%, while the construction sector showed no growth during this period.

Asian stocks ended mixed, supported by signs of easing trade tensions between the United States and China. While markets appear to have priced in the peak of tariff-related macroeconomic stress, investor sentiment remains cautious amid softening U.S. economic indicators.

On Wall Street, major indexes posted mixed performances on Wednesday. The S&P 500 gained 0.1%, and the NASDAQ Composite rose 0.7%, driven largely by sustained strength in technology stocks. The Dow Jones Industrial Average declined 0.2%.

Investor optimism around artificial intelligence continued to support technology shares. Several AI-related chipmakers and infrastructure firms delivered strong earnings and forward guidance. Server manufacturer SuperMicro surged over 15%, while cloud computing company CoreWeave rose 6.6% during the session. However, CoreWeave declined 7.9% in after-hours trading following comments that increased capital expenditures may compress its profit margins.

Technology stocks have been the primary drivers of this week's gains, particularly after the U.S. and China announced a meaningful step back from ongoing tariff escalations. Broader market sectors also advanced on the news, though their momentum slowed by Wednesday.

Market participants are now focused on the upcoming U.S. Producer Price Index (PPI) data, expected on Thursday, which is anticipated to show a moderation in factory-gate inflation for April.

Additionally, attention is centered on a scheduled speech by Federal Reserve Chair Jerome Powell later on Thursday. Powell is expected to provide further insight into the Fed's monetary policy framework and its approach to achieving the dual mandate of maximum employment and price stability, particularly in the context of unchanged interest rates and continued economic uncertainty highlighted during last week's policy decision.

Stocks in Spotlight:

Persistent Systems fell 1.96%, following reports that its key client UnitedHealth Group is under a criminal investigation for potential Medicare fraud. On Tuesday (13 May), the company announced that CEO Andrew Witty would step down for personal reasons. Chairman Stephen Hemsley, who previously served as CEO from 2006 to 2017, has returned to the role, effective immediately. Witty will stay on as a senior adviser. UnitedHealth cut its 2025 forecast last month following its first quarterly earnings miss in more than a decade. On Tuesday (13 May) the company withdrew that financial forecast entirely, saying that medical costs from new Medicare Advantage members were higher than expected.

eClerx Services surged 14.90% after the company's consolidated profit after tax stood at Rs 152.2 crore in Q4 March 2025, marking a healthy 16.6% year-on-year growth and an 11% rise compared to Q3 December 2024. Operating revenue for the quarter came in at Rs 898.3 crore, up 17.2% from a year ago and 5.2% higher sequentially.

Remsons Industries rallied 14.12% after announcing a major order win worth approximately Rs 300 crore from Stellantis North America, the company's largest-ever business deal to date.

Tilaknagar Industries zoomed 14.09% after the company reported a 145.9% surge in consolidated net profit to Rs 77.35 crore on a 13.1% increase in revenue from operations (excluding excise duty) to Rs 405.81 crore in Q4 FY25 over Q4 FY24.

Cochin Shipyard surged 6.64% after the company's consolidated net profit rallied 10.93% to Rs 287.18 crore in Q4 FY25 as against Rs 258.88 crore posted in Q4 FY24. Revenue from operations jumped 36.67% YoY to Rs 1,757.65 crore in the quarter ended 31 March 2025.

Karnataka Bank fell 3.6% after the bank's net profit fell 7.97% year-on-year to Rs 252.37 crore in Q4 March 2025. The bank's total income rose 2.55% YoY to Rs 2,686.69 crore in Q4 FY25.

Saregama India advanced 1.25% after the company's consolidated net profit jumped 11.06% to Rs 59.86 crore despite an 8.45% decline in revenue from operations to Rs 240.82 crore in Q4 FY25 over Q4 FY24.

Torrent Power fell 1.33%. The company reported a consolidated net profit of Rs 1,059.57 crore in Q4 FY25, a 146.27% increase as against Rs 430.24 crore in Q4 FY24. However, revenue from operations fell 1.10% year on year to Rs 6,456.34 crore in the quarter ended 31 March 2025.

Apollo Tyres rose 1.14%. The company reported a 47.85% decline in consolidated net profit to Rs 184.62 crore in Q4 FY25 as against Rs 354.08 crore posted in Q4 FY24. However, revenue from operations grew by 2.64% to Rs 6,423.59 crore in the quarter ended 31 March 2025.

Transport Corporation of India fell 1.60%. The company reported an 11.42% rise in consolidated net profit to Rs 115.10 crore on an 11.42% increase in revenue from operations to Rs 103.30 crore in Q4 FY25 over Q4 FY24.

Baazar Style Retail tumbled 7.04% after the company reported a consolidated net loss of Rs 6.39 crore in Q4 FY25 as against a net loss of Rs 6.43 crore recorded in Q4 FY24. Revenue from operations rose by 55% year-over-year (YoY) to Rs 345.4 crore in the fourth quarter.

Jubilant Foodworks declined 1.12% after the company's consolidated net profit fell 76.9% to Rs 48.01 crore, despite a 33.6% jump in revenue from operations to Rs 2,103.18 crore in Q4 FY25 over Q4 FY24.

Sagility India fell 4.50%. The company reported a consolidated net profit of Rs 182.57 crore in Q4 FY25, a 127.64% increase as against Rs 80.20 crore in Q4 FY24. Revenue from operations jumped 22.23% YoY to Rs 1,568.5 crore in Q4 FY25.

ITC Hotels shed 0.30%. The company reported a 20% rise in consolidated net profit to Rs 256.90 crore on a 4% increase in revenue from operations to Rs 1060.62 crore in Q4 FY25 as compared with Q4 FY24.

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