Nifty 500 climbs 3.5% in May, driven by Industrials, Consumer, and Financial Services: Motilal Oswal

The Nifty 500 index climbed 3.50 per cent in Could, pushed by regular good points in Industrials, Shopper Discretionary, and Monetary Providers sectors, an evaluation by the Motilal Oswal noticed. Sectoral indices of FMCG (Quick-Shifting Shopper Items) and utilities underperformed, posting slight declines of -0.09 per cent and -0.04 per cent, respectively, as per the evaluation.

As per the statement, broader market sentiment remained constructive, with the Nifty 50 up 1.71 per cent and the Nifty Midcap 150 surging 6.30 per cent. Smallcap and Microcap indices additionally registered sharp good points.

Amongst factor-based indices, Momentum and High quality continued to ship constant returns, whereas Enhanced Worth and Low Volatility posted reasonable advances.

Authorities bond indices mirrored stability, with modest good points in each 5-year and 10-year G-Sec benchmarks.

As per the market consultants and several other stories obtainable within the public area, the most recent determination of the Reserve Financial institution of India (RBI) to slash the coverage rate of interest by 50 foundation factors will considerably profit sectors akin to banking, NBFCs, actual property, and cars.

The RBI’s Financial Coverage Committee on Friday reduce the repo price by 50 foundation factors to five.50 per cent (from 6.00 per cent).

This larger-than-expected reduce marks the third consecutive discount in 2025, totalling 100 bps of easing since February.

On the finish of the buying and selling on Friday, sectors akin to banking and realty noticed a serious upswing quickly after the repo price revision.

“This large price reduce will influence the margins of the banks and, due to this fact, financial institution shares will likely be below strain within the close to time period. Nonetheless, the credit score progress that this price reduce will hopefully stimulate will compensate for the dip in margins,” mentioned VK Vijayakumar, Chief Funding Strategist, Geojit Investments Restricted observing the doable influence of the RBI determination.

Aside from Media, which was one per cent down on Friday, all different sectoral indices ended greater with steel, auto, and shopper durables leaping over one per cent every.