Mon May 26 04:40:00 UTC 2025: Okay, here’s a news article summarizing and rewriting the provided text:

**Indian Stock Markets Surge on Global Optimism and RBI Dividend**

**CHENNAI:** Indian stock markets witnessed a strong rally in early trading today, buoyed by improved global sentiment and a hefty dividend payout from the Reserve Bank of India (RBI). The BSE Sensex initially surged by 716.25 points before settling at 695.20 points to 82416.28 as of 10.11 am, while the NSE Nifty crossed the 25,000 mark, gaining over 150 points.

The surge follows U.S. President Donald Trump’s decision to extend the deadline for trade negotiations with the European Union, easing immediate geopolitical tensions and fostering a “risk-on” mood across global equities. Expectations of a potential U.S. tax policy shift further contributed to the positive global outlook.

Adding to the bullish sentiment, the RBI’s record ₹2.68 lakh crore dividend to the government has injected optimism into the market, with analysts suggesting it could support fiscal spending ahead of the Union Budget. Foreign portfolio investors (FPIs) have also shown confidence in the Indian growth story, pouring in $2.25 billion into Indian equities so far in May.

Investors are now eagerly awaiting India’s Q1 FY25 GDP data, which is expected to show a 6.0% year-on-year growth rate. However, caution remains amidst underwhelming corporate earnings for Q4 FY25, with the Nifty-50 index posting a modest 5.8% YoY earnings growth, raising concerns about stretched valuations.

While Asian markets traded mixed, with gains in Japan offset by losses in China and Korea, buying activity in India was seen across sectors like banking, auto, and capital goods. Mid- and small-cap indices also participated in the rally.

“Monday’s surge reflects renewed optimism in both domestic and global markets,” noted analysts. Sustaining this momentum will depend on upcoming economic data, global policy cues, and corporate performance. Investors are advised to remain selective and focus on fundamentally sound stocks amid likely near-term volatility.

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