Early buying interest pushes benchmarks higher; IT stocks lead gains while oil prices cool on US-Iran peace signals

Indian equity markets started Friday on a firm footing, with the Sensex comfortably trading above the 76,000 level and the Nifty inching closer to the psychological 24,000 mark during early deals. The uptick followed a truncated holiday-shortened week and came amid mixed cues from global peers.

The 30-share Sensex was seen hovering around 76,150 levels, up nearly 280 points from its previous close, while the broader Nifty traded near 23,980, showing gains of about 70 points. The market remained closed on Thursday, May 28, on account of Bakri Eid.

Early Gains on D-Street

Investors appeared to shrug off the modest losses from the last trading session. On May 27, the Sensex had closed 142 points lower at 75,868, while the Nifty slipped 7 points to end at 23,907. Banking shares had witnessed the maximum selling pressure that day.

However, Friday’s early session saw renewed buying interest across select pockets, though sectoral performance remained mixed. Nifty IT emerged as the top gainer, rising 1.74 per cent, while Consumer Durables and Chemical indices traded in the red.

Expert Sees Rangebound Moves

Arun Mantri, founder of Mantri Finmart, said the Nifty is likely to trade within a broad range of 23,600 to 24,100 points in the coming sessions. Market participants are advised to adopt a “buy on dips” strategy, given the prevailing support levels and lack of major negative triggers domestically.

“The range is likely to hold unless there is a fresh global shock. Investors with a medium-term view can look at accumulating quality names on declines,” Mantri reportedly said.

Oil Dips on US-Iran Talks

Sentiment got a minor boost from cooling crude prices. Brent crude eased to around $93 per barrel on Friday following reports that peace talks between the United States and Iran were underway. Lower oil prices are typically viewed as positive for India, a major net importer of crude.

US Vice-President JD Vance told the BBC that a formal agreement to end the conflict was “very close” but cautioned that key differences remained unresolved. “It’s too early to say when or if an agreement will be finalised, though negotiators are very close,” Vance said. The proposed deal reportedly includes a 60-day ceasefire extension and formal discussions on Iran’s nuclear programme.

Rupee Recovers Marginally

The Indian rupee strengthened by 5 paise to settle at 95.53 against the US dollar on a provisional basis, aided by softer crude prices and early equity inflows. However, the currency remains under broad pressure given the sustained strength of the greenback overseas.

Global Cues Offer Mixed Support

Overnight, US markets ended marginally higher. The Dow Jones added 25 points (0.05 per cent) to close at 50,669, while the Nasdaq surged 243 points (0.91 per cent) and the S&P 500 rose 43 points (0.58 per cent). Most Asian markets advanced on Friday, with South Korea’s KOSPI jumping nearly 2 per cent, Japan’s Nikkei climbing 1.86 per cent, and Hong Kong’s Hang Seng edging up 0.25 per cent.

FIIs Remain Net Sellers

Foreign institutional investors continued their selling spree, offloading shares worth ₹1,043 crore on May 27. Over the last seven days, FII outflows stood at ₹2,629 crore, while in the past 30 days, they have pulled out nearly ₹42,905 crore. In contrast, domestic institutional investors remained net buyers, pumping in ₹3,821 crore on the same day.

Market participants will closely track progress on the US-Iran negotiations and crude price movements in the coming sessions. For now, the early morning momentum suggests some resilience, though analysts caution that sustained upmoves would require broader participation beyond IT stocks.

Indian equity markets remained closed on Thursday on account of Bakrid, while commodity (MCX) trading will resume later in the evening, market officials confirmed. The holiday came as Asian stock indices slid sharply and crude oil prices jumped amid renewed tensions in the Middle East, denting investor sentiment ahead of the weekend.

Markets closed for Bakrid

The BSE and NSE did not operate on Thursday because of the Bakrid public holiday, a routine annual closure. Commodity exchanges, including MCX, were inactive until late afternoon; trading is scheduled to restart at 5:00 pm IST, exchange notices showed. Stock broking desks said most overseas markets were open, leaving Indian investors to track global cues remotely.

Asian markets slide

Asian equities suffered notable declines on Thursday. South Korea’s KOSPI dropped about 3.1% in early trade, while Hong Kong’s Hang Seng fell roughly 2.3% and Japan’s Nikkei eased around 1.2%, exchange feeds indicated. Market strategists linked the weakness to a sharp rise in crude oil and lingering geopolitical worries after fresh US-Iran tensions.

US markets firmed; mixed signals

Wall Street closed modestly higher on Wednesday, with the Dow Jones adding 0.36% and the Nasdaq nearly flat, data showed. But that limited uplift failed to translate into Asian gains overnight. “US markets were steady, but the spike in oil and heightened risk aversion in Asia outweighed the follow-through,” a Hong Kong-based strategist said on condition of anonymity.

FIIs net sellers

Data compiled by exchange sources showed continued foreign institutional investor (FII/FPI) outflows. Over the past 30 days, FIIs sold equities worth about ₹45,374 crore, while domestic institutional investors (DIIs) remained net buyers, purchasing roughly ₹71,654 crore over the same period. In the latest seven-day window, FIIs were net sellers to the tune of around ₹7,069 crore, compared with DII buys of ₹15,043 crore.

Domestic indices fell earlier

On Wednesday, when markets were open, the BSE Sensex closed down 142 points at 75,868 and the Nifty 50 slipped 7 points to finish at 23,907. Banking stocks underperformed, brokers said, reflecting profit-taking after a recent rally and sensitivity to macro and liquidity expectations.

Crude surge fuels concerns

A key immediate trigger was a near 4% rise in Brent crude to about $98 per barrel on Thursday, traders said, citing renewed US-Iran tensions. Higher oil directly affects inflation and input costs globally and is particularly sensitive for India, which imports an estimated 80–85% of its crude needs. “When oil spikes, the trade deficit and inflation outlook worsen, the rupee can weaken, and corporate margins—especially for fuel-intensive sectors—come under pressure,” an equity economist noted.

Why oil hits Indian markets

Analysts explained that rising crude increases import bills, pressuring the rupee and raising costs for manufacturers, transporters and airlines. That squeezes corporate profits and can erode equity valuations. Retail inflation risks could also prompt tighter monetary stance expectations, adding to investor caution.

Ground-level cues

On the trading floors and at brokerage firms in Mumbai’s Dalal Street, traders spent the holiday monitoring late-session commodity trades and global headlines. “We were more focused on oil and flows from FIIs. With markets closed, clients expect a quiet holiday but want updates before the close in the US,” said a Mumbai broker who declined to be named.

What to watch next

Market participants will watch MCX’s evening session for any volatility in energy contracts and refine positions ahead of Friday’s truncated session. The rupee’s movement versus the dollar, upcoming US economic data, and any further geopolitical developments will be key near-term drivers. Investors will also track central bank commentary and domestic macro prints that could influence DII behavior.

For now, the Bakrid holiday gave local investors a pause to reassess exposures while global factors—especially a resurgent crude oil price—kept risk sentiment subdued. If oil maintains elevated levels into next week, strategists warn, Indian markets may face renewed pressure once trading resumes fully.

Indian Markets Open Cautious as Nifty Slips to 23,450, Sensex Crashes 500 Points; Rupee Hits Record Low of 96.90

Domestic equity benchmarks began trading on a decidedly cautious note Wednesday morning, with the Sensex tumbling over 500 points and the Nifty sliding to the 23,450 level as persistent foreign outflows and sticky crude oil prices weighed on investor sentiment.

The 30-share BSE Sensex dropped 512 points to touch 74,689 within the first hour of trade, while the broader Nifty50 declined to 23,447, down nearly 170 points from its previous close. The sell-off was broad-based, though some defensive pockets showed resilience.

Heavyweights lead the decline

Blue-chip stocks came under significant pressure. Tata Steel, Bharat Electronics Limited (BEL), Eternal Ltd, Mahindra & Mahindra, Maruti Suzuki, Bajaj Finance, and State Bank of India were among the major losers dragging the Sensex lower. Market participants attributed the weakness to sustained selling by foreign institutional investors.

Mixed signals across sectors

Sectoral performance remained uneven. Nifty Media, Realty, Chemicals, and PSU Bank indices traded in the red, reflecting broad risk aversion. In contrast, Nifty Pharma emerged as the top gainer, rising 0.23 per cent as investors rotated into defensive healthcare names amid global uncertainty.

Rupee plunges to unprecedented low

The Indian rupee weakened by 20 paise to open at 96.90 against the US dollar – its weakest level on record. The currency’s slide comes as crude oil prices remain stubbornly above the $110 per barrel mark, raising concerns over India’s import bill and current account deficit.

“The combination of elevated oil prices and persistent FII outflows is putting double pressure on the rupee,” a currency dealer at a public sector bank said, requesting anonymity.

Global cues remain unfavourable

Overnight losses on Wall Street set a grim template. The Dow Jones Industrial Average closed 322 points lower at 49,364, while the Nasdaq shed 220 points. The S&P 500 declined 49 points to 7,354.

Asian markets followed suit on Wednesday morning. South Korea’s KOSPI tumbled 2.83 per cent (142 points) to 7,131. Japan’s Nikkei fell 1.30 per cent (786 points) to 59,764, and Hong Kong’s Hang Seng slipped 0.86 per cent (237 points) to 25,561.

FIIs continue selling spree

Provisional data showed foreign institutional investors offloaded equities worth ₹2,458 crore in the previous session, adding to the month-long exodus. Over the past 30 days, FIIs have sold Indian shares worth over ₹54,000 crore. In contrast, domestic institutional investors have stepped in as buyers, picking up ₹3,802 crore worth of stocks on Tuesday and nearly ₹65,000 crore over the past month.

Previous session’s slide lingers

On Tuesday, the Sensex had ended 114 points lower at 75,201, while the Nifty closed down 32 points at 23,618. Wednesday’s opening decline extends that losing momentum.

No Indian firm in global top-100 club

In a separate development, a Bloomberg report noted that not a single Indian company now features among the world’s 100 most valuable firms by market capitalisation. As recently as early 2025, three Indian entities – Reliance Industries, HDFC Bank, and Tata Consultancy Services – had been part of that elite list. Persistent declines in domestic stock markets have eroded their valuations, pushing them out of the global ranking.

Analysts expect market volatility to continue in the near term, with all eyes on the rupee’s trajectory and further FII activity.

Share Markets Flat, Rupee Hits Record Low of 95.86 Amid Persistent Foreign Outflows

Domestic benchmark indices traded largely flat with a positive bias during Thursday's morning session, while the rupee slumped to an all-time low of 95.86 against the US dollar, reflecting sustained pressure from foreign capital outflows and a strengthening greenback overseas.

The Sensex was hovering around the 74,700 level, up nearly 200 points, while the Nifty gained about 75 points to trade at 23,450. Buying interest remained visible across auto, metal, banking, and pharma counters, though broader market sentiment stayed cautious.

Rupee Slides Past 95

The Indian currency weakened by 20 paise to touch 95.86 against the dollar in early trade, breaching its previous record low. Forex dealers attributed the decline to month-end dollar demand from importers and continued selling by foreign institutional investors.

"Strong dollar appetite and lack of major intervention signals kept the rupee under pressure," a currency trader with a public sector bank said, requesting anonymity.

FII Selling Streak Continues

Foreign institutional investors remained net sellers for the sixth consecutive session, offloading equities worth ₹4,703 crore on Wednesday. Over the last seven days, FII outflows have totalled nearly ₹19,211 crore, according to exchange data.

In contrast, domestic institutional investors continued their buying spree, picking up shares worth ₹5,869 crore on Wednesday. Their net buying over the past month stands at approximately ₹53,841 crore, partially cushioning the impact of foreign exits.

Oil Edges Higher

Global crude prices added to inflationary concerns, with Brent crude rising to $106 per barrel. The uptick in oil prices poses additional risks for India's trade deficit and could further pressure the rupee in coming sessions.

Mixed Cues From Global Markets

Overnight trading on Wall Street delivered a mixed close. The Dow Jones declined 67 points to 49,693, while the Nasdaq surged 314 points to 26,402. The S&P 500 added 43 points, ending at 7,444.

Asian markets traded with modest gains this morning. South Korea's KOSPI rose 34 points to 7,877, Japan's Nikkei advanced 177 points to 63,449, and Hong Kong's Hang Seng gained 48 points to 26,436.

What Analysts Are Watching

Market participants are closely tracking the Reserve Bank of India's next move on the rupee, though no immediate intervention signals have emerged. On Wednesday, the Sensex had closed at 74,609 with a gain of 50 points, while the Nifty ended at 23,413, up 33 points.

Trading volumes remained moderate in the first half of Thursday's session, with analysts suggesting that sustained FII selling and global uncertainty could keep gains in check through the remainder of the week.