Sensex jumps 562 points in early trade

Sensex and Nifty surge as India becomes fourth largest economy, RBI announces record dividend, and Trump delays EU tariffs.

Benchmark indices Sensex and Nifty surged in early trade on Monday (May 26, 2025) following news that India has become the fourth largest economy in the world.

Moreover, early arrival of monsoon, the Reserve Bank announcing a record ₹2.69 lakh crore dividend to the government for FY25 and U.S. President Donald Trump delaying 50 per cent EU tariffs to July 9 also added to the optimism of the market, experts said.

The 30-share BSE benchmark gauge Sensex jumped 562.31 points to 82,283.39 in early trade. The NSE Nifty climbed 175.7 points to 25,028.85.

From the Sensex firms, Mahindra & Mahindra, Tata Motors, Titan, ICICI Bank, Tech Mahindra, NTPC, Power Grid and Bajaj Finserv were the biggest gainers.

Eternal emerged as the only laggard from the 30-share pack.

India has become the fourth largest economy in the world, overtaking Japan, NITI Aayog CEO B.V.R Subrahmanyam has said.

"News of India becoming the fourth largest economy in the world would be a near-term morale boost for the market. RBI's bumper dividend payment to the government, exceeding the budget estimates, will help contain the fiscal deficit target for FY26 at 4.4 per cent. This, in turn, can sustain the low inflation and declining interest rate trend which will continue to support the equity market," V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said.