Benchmarks End Flat as Oil Rebound Caps Gains

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

May 21, 2026 at 11:38 AM IST

Indian equity benchmarks ended largely flat on Thursday as a rebound in Brent Crude prices revived concerns around inflation and India’s external balances, offsetting optimism from easing geopolitical tensions and stock-specific earnings gains. The Nifty50 slipped 0.02% or 4.30 points to close at 23,654.70, while the BSE Sensex declined 0.18% or 135.03 points to settle at 75,183.36.

Markets remained volatile during the weekly Sensex derivatives expiry session, with both benchmark indices initially rising around 0.8% after oil prices dropped sharply overnight following comments from Donald Trump that negotiations with Tehran were in their “final stages”. However, gains faded later in the session as crude prices rebounded after Iran announced tighter control measures over the Strait of Hormuz.

Sectorally, FMCG, IT and financial services stocks underperformed, while realty and cement shares outperformed the broader market. Bajaj Finance, Tech Mahindra and Hindustan Unilever emerged among the top losers on the Nifty50 index.

Broader markets were mixed, with the Nifty MidCap index ending marginally lower while the Nifty SmallCap index gained 0.63%. Investors also monitored expectations of possible policy tightening after economists at Standard Chartered suggested that the Reserve Bank of India could begin raising interest rates as early as June amid rising inflation risks linked to elevated oil prices.

Top Movers of the Day

InterGlobe Aviation (IndiGo) gained just over 3% to around ₹4,400 as strong travel demand and firm load factors kept aviation stocks in favour, helping the airline top the Nifty 50 gainers list.

Grasim Industries climbed about 6% to roughly ₹3,162 after reporting a 28% year‑on‑year jump in Q4 net profit, with upbeat commentary on cement and paints reinforcing confidence in its capex‑led growth plans.

Protean eGov Technologies hit the 20% upper circuit at about ₹654 after the company posted robust Q4 profit and revenue growth, sparking aggressive buying in the freshly listed digital‑services player.

Lenskart Solutions rose nearly 2% to around ₹498 as the eyewear retailer delivered a 46% year‑on‑year surge in Q4 revenue, prompting a series of target price upgrades from top global brokerages despite a modest dip in profit.

Bharat Electronics advanced about 1.6% to roughly ₹420, extending its recent outperformance as sustained defence ordering and healthy execution underpinned sentiment in defence and electronics names.

Sammaan Capital jumped over 9% to around ₹155 in early trade, continuing its sharp rally on heavy volumes amid strong speculative interest in the financial services counter.

Honeywell Automation India surged nearly 15% to about ₹34,800 after a strong move at the open, driven by enthusiasm around industrial automation demand and its premium positioning in process‑control solutions.

Techno Electric & Engineering Company rallied over 7% to roughly ₹1,294, buoyed by expectations of sustained order inflows in power and transmission projects as energy‑infrastructure spending remains robust.

Jubilant Foodworks slumped around 8% to near ₹434, extending the previous session’s slide as Domino’s India operator’s Q4 results and cautious brokerage commentary on margins and demand triggered further profit‑taking.

Kaveri Seed Company dropped about 3.8% to roughly ₹913 as investors pared exposure to agri‑inputs ahead of the monsoon, with concerns around pricing power and competitive intensity weighing on the stock.

Bosch fell nearly 4.7% to about ₹35,115 as auto‑component names faced selling pressure amid worries over input costs and softer near‑term demand for premium passenger vehicles.

Ola Electric Mobility declined around 4% to around ₹35.51 after the firm reported a Q4 net loss of about ₹5 billion despite narrowing losses year‑on‑year, raising questions over the pace of profitability in its electric‑two‑wheeler business.

Adani Power remained in focus after announcing definitive agreements to acquire a 24% stake in Jaiprakash Power Ventures and other thermal assets from Jaiprakash Associates for around ₹41.94 billion.

Sansera Engineering rallied 15% to a record high of ₹2,870 after reporting strong operational performance in Q4FY26.

Futures & Options
Nifty May 2026 futures closed at 23,635, a discount of 19.70 points to the spot Nifty 50 close of 23,654.70, reflecting cautious positioning in the derivatives market amid persistent global macroeconomic uncertainty. In the cash market, the Nifty 50 ended marginally lower by 4.30 points or 0.02%, while market volatility eased further with India VIX declining 3.34% to 17.82.

Among stock futures, HDFC Bank, Tata Consultancy Services and Infosys were the most actively traded contracts in the F&O segment. The May 2026 derivatives series will expire on 26 May 2026.

Bonds
India’s government bond yields edged higher on Thursday, extending gains for a third consecutive session as rising US Treasury yields and expectations of tighter domestic monetary policy continued to pressure the debt market. The benchmark 6.48% 2035 government bond yield ended at 7.1134%, higher than Wednesday’s close of 7.0761%. Investor sentiment remained cautious as the selloff in US Treasuries narrowed the yield advantage of emerging-market debt and triggered pressure across global bond markets.

Markets also tracked expectations around future Reserve Bank of India policy actions amid elevated Brent Crude prices and persistent inflation concerns. Attention now shifts to Friday’s government bond auction, where New Delhi plans to raise ₹320 billion through the sale of the 6.03% GS 2029, 6.68% GS 2033 and 7.24% GS 2055 securities.

Forex
Indian rupee strengthened on Thursday, snapping a two-week losing streak after intervention by the Reserve Bank of India helped stabilise the currency following a series of record lows. The rupee closed at 96.20 against the US dollar, up 0.6% from the previous close of 96.82, marking its strongest single-day gain in two weeks. The currency briefly strengthened beyond the 96-per-dollar mark during the session before paring some gains later in the day.

Market participants said the Reserve Bank of India conducted aggressive dollar sales through state-run banks before market opening and continued intermittent intervention during the session to support the rupee. Sentiment was also aided by reports that policymakers were considering additional measures, including a possible interest rate hike, to defend the currency amid elevated Brent Crude prices and external pressures.

Crypto
Bitcoin continued to trade in the $77,000-$78,000 range after briefly moving above $80,000 earlier, supported by strong institutional demand and relatively limited supply despite ongoing market volatility. Investor sentiment remained cautious as markets closely tracked interest rate expectations, ETF flows and regulatory developments.

Ethereum showed modest recovery after recent weakness, managing to hold above the key $2,000 support level. Ethereum traded near $2,140 with market capitalisation above $258 billion and daily trading volumes exceeding $12 billion, although broader market indicators suggested that selling pressure remained elevated.

US Stock Futures
US stock futures traded marginally lower on Thursday as investors assessed whether results from Nvidia were strong enough to justify the elevated expectations surrounding the artificial intelligence sector. Futures linked to the S&P 500 slipped 0.1%, while Nasdaq-100 futures were largely flat. Futures tied to the Dow Jones Industrial Average declined around 50 points or 0.1%.

Nvidia reported earnings and guidance ahead of Wall Street expectations and also announced an increase in its quarterly dividend to 25 cents per share. However, markets remained cautious as investors have become accustomed to significant earnings beats from the AI chipmaker amid the ongoing artificial intelligence boom.

US Treasury Notes
Yields on US Treasury moved higher again in pre-market trading as persistent inflation worries and expectations of prolonged tight monetary policy continued to pressure global bond markets. The benchmark 10-year Treasury yield rose around 5 basis points to 4.619%, reversing earlier declines as investors increasingly priced in a higher long-term interest rate environment. Rising yields reflected renewed concerns that the Federal Reserve may need to keep rates elevated for longer to contain inflation.

Market sentiment also remained cautious despite temporary geopolitical relief linked to ongoing US-Iran negotiations. Investors continued to monitor inflation indicators, and elevated Brent Crude prices.

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