Sensex, Nifty surge over 1%; FMCG shares jump

The key equity benchmarks maintained strong upward momentum in mid-morning trade. The Nifty traded above the 24,850 mark. The market remained firm despite lingering worries about increasing U.S. interest rates and a growing federal deficit. Investors are likely to keep a close watch on bond yields and global economic indicators.

FMCG shares climbed after declining in the past trading session.

At 11:27 IST, the barometer index, the S&P BSE Sensex, added 868.41 points or 1.07% to 81,820.40. The Nifty 50 index advanced268.80 points or 1.09% to 24,883.20

The broader market underperformed frontline indices. The S&P BSE Mid-Cap index advanced 0.39% and the S&P BSE Small-Cap index jumped 0.35%.

The market breadth was positive. On the BSE, 2,193 shares rose and 1,455 shares fell. A total of 208 shares were unchanged.

IPO Update:

The initial public offer of Belrise Industries received bids for 44,76,18,336 shares as against 17,70,58,824 shares on offer, according to stock exchange data at 11:37 IST on 23 May 2025. The issue was subscribed 2.53 times.

The issue opened for bidding on 21 May 2025 and it will close on 23 May 2025. The price band of the IPO is fixed between Rs 85 and 90 per share. An investor can bid for a minimum of 166 equity shares and in multiples thereof.

Buzzing index:

The Nifty FMCG index advanced 1.83% to 56,614.55. The index declined in the past trading session.

Varun Beverages (up 3.96%), ITC (up 2.64%), Nestle India (up 1.99%), Tata Consumer Products (up 1.93%) and Godrej Consumer Products (up 1.38%) were the top gainers. Among the other gainers were Hindustan Unilever (up 1.25%), Dabur India (up 1.22%), Marico (up 1.05%), Britannia Industries (up 0.9%) and Radico Khaitan (up 0.77%) advanced.

Stocks in Spotlight:

Power Mech Projects surged 6.88% after the company reported a 53.76% jump in consolidated net profit to Rs 129.79 crore in Q4 FY25, compared to Rs 84.41 crore in the year-ago period.

HFCL added 1.40%. The company reported consolidated net loss of Rs 81.43 crore in Q4 FY25 as against net profit of Rs 110.6 crore posted in Q4 FY24. Revenue from operations tanked 39.61% year on year on to Rs 800.72 crore in the fourth quarter of FY25.

Metro Brands (MBL) advanced 2.34%. The company has reported 38.7% fall in consolidated net profit to Rs 95 crore despite a 10.3% increase in revenue to Rs 643 crore in Q4 FY25 as compared with Q4 FY24.

Global Markets:

Most Asian stocks gained on Friday as investors evaluated fresh economic data and monitored diplomatic signals. A call between Chinese Vice Foreign Minister Ma Zhaoxu and U.S. Deputy Secretary Christopher Landau led to an agreement to maintain communication, according to a statement from China's Foreign Ministry. The two officials discussed key bilateral issues, though no further details were provided.

In Japan, the core consumer price index (CPI), excluding fresh food, rose 3.5% year-on-year in April'up from 3.2% in March and marking the highest rate since early 2023. A separate core CPI measure, which strips out both fresh food and energy and is closely watched by the Bank of Japan, rose to 3% from 2.9%, remaining above the central bank's 2% target. Headline inflation held steady at 3.6%.

Investors are also reviewing South Korea's producer price index (PPI) for April and New Zealand's Q1 retail sales figures.

In the U.S., markets closed mixed Thursday. The Dow Jones Industrial Average was nearly flat, falling 1.35 points. The S&P 500 edged down 0.04%, while the Nasdaq Composite rose 0.28%. Concerns about rising interest rates and the growing federal deficit weighed on sentiment. The 30-year Treasury yield climbed to its highest level since 2023 after lawmakers passed a bill that markets believe could widen the deficit.

Meanwhile, the U.S. S&P Global Composite PMI rose to 52.1 in May from 50.6 in April, indicating stronger private-sector activity. The Manufacturing PMI climbed to 52.3 from 50.2, and the Services PMI rose to 52.3 from 50.8.

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