Indian equity benchmarks Sensex and Nifty50 closed higher on May 2, 2025, with the Sensex up 259.75 points at 80,501.99 and the Nifty50 gaining 12.50 points to 24,346.70. Both indices gave up significant morning gains, with the Nifty reaching an intraday high of 24,589 before falling to a low of 24,238. Strong early sentiment was driven by optimism over potential US-India and US-China trade deals, as well as foreign institutional investor net inflows of Rs 37,375 crore. However, profit booking and volatility led to a pullback later in the session. Oil & Gas, Financial Services, and Information Technology outperformed, while Consumer Durables, Metals, Realty, and Pharmaceuticals lagged. Adani Ports gained 4%, with Bajaj Finance, IndusInd Bank, Reliance Industries, and SBI also among the top gainers. The Indian rupee strengthened past 84 per US dollar for the first time since October 2024, reaching an intraday high of 83.76 and closing at 84.50. The rupee has appreciated 2.16% in 2025, supported by easing tariff tensions with the US, prospects for a bilateral trade agreement, robust foreign fund inflows, and strong domestic data, including record GST collections of Rs 2.37 lakh crore in April. The rupee has now wiped out all losses since the November 2024 US presidential election. Broader markets were mixed: the Smallcap 100 index fell 0.7% and the Midcap 100 declined 0.1%, with both indices down 6% and 12.5% respectively since the start of the year. For the week, the Nifty Bank, Sensex, and Nifty each gained 1%, while the Midcap Index rose 0.3%.