Benchmarks End Higher as US-Iran Talks Improve Sentiment

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

Kagenmi

istock.com

By Dehuti Jani

May 22, 2026 at 11:54 AM IST

Indian equity benchmarks ended higher on Friday and posted modest weekly gains as improving prospects of a diplomatic breakthrough between the US and Iran supported investor sentiment and eased some pressure on global markets. The Nifty50 gained 0.27% or 64.60 points to close at 23,719.30, while the BSE Sensex rose 0.31% or 231.99 points to settle at 75,415.35.

Markets drew support after reports indicated that negotiations between Washington and Tehran had made progress, with Iranian officials suggesting that differences with the US had narrowed. However, concerns remained around Iran’s uranium stockpile and control over the Strait of Hormuz, which has continued to influence global energy markets and risk sentiment.

Domestic sentiment also improved after the Indian rupee strengthened sharply following aggressive intervention by the Reserve Bank of India. The rupee appreciated by around 51 paise during the session to trade near 95.69 against the US dollar, helping financial and banking stocks recover.

Sectorally, private banks and financial services stocks outperformed, while pharma, healthcare and media shares lagged. Trent, Shriram Finance and Axis Bank emerged as the top gainers on the Nifty50 index. Broader markets were mixed, with the Nifty MidCap index gaining 0.14% while the Nifty SmallCap index slipped 0.15%.

Investor sentiment was further supported by softer Brent Crude prices, which eased toward $105 per barrel from around $110 a week earlier, although crude remains sharply elevated compared with levels before the conflict in West Asia escalated.

Top Movers of the Day

LIC rose 1.6% to around ₹813.05 after the insurer reported its Q4 FY26 results, announced a maiden 1:1 bonus issue and declared a ₹10‑per‑share dividend, prompting upbeat brokerage commentary.

Honasa Consumer (Mamaearth) surged over 5% to roughly ₹379.90 as a 178% year‑on‑year jump in Q4 net profit and 23% revenue growth led foreign brokerages to reaffirm positive views on the beauty and personal‑care player.

Nykaa (FSN E‑Commerce Ventures) rose over 0.7% to about ₹276.5 after its strong Q4 earnings and improving profitability trends kept sentiment firm around discretionary consumption and digital‑first retail names.

Sun Pharmaceutical Industries declined around 2% towards ₹1,840 ahead of its Q4 FY26 results, as investors bet on resilient US generics and specialty portfolios and a healthy domestic formulations franchise.

ITC slipped around 1.9% to roughly ₹302 despite a 5% year‑on‑year rise in Q4 standalone profit, with concerns over cigarette tax hikes and pressure on volumes and margins overshadowing strength in its FMCG and paperboards businesses.

LG Electronics India fell as much as 4% to an intraday low near ₹1,474 after the company reported an 8% year‑on‑year decline in March‑quarter net profit to about ₹6.9 billion, disappointing investors looking for stronger earnings traction. At the end of the trade the share price closed at ₹1,483, down 3%.

Vodafone Idea, gained 0.66% to ₹13.71 on relief measures and capital‑raising hopes, saw bouts of intraday volatility as traders booked profits after the recent sharp run‑up.

Aurobindo Pharma plunged nearly 5% to ₹1,468 after investors reacted negatively to margin contraction in Q4FY26 despite a marginal rise in net profit.

Varun Beverages hit a 52-week high of ₹540.75, rising 4.02% after extending its exclusive bottling and trademark licensing agreement with PepsiCo in India until April 2049.

Page Industries jumped around 2.4% to ₹39,300 after strong March quarter earnings. The stock touched an intraday high of ₹40,490 on the NSE.

Info Edge rose 4.13% to ₹964 after reporting improved Q4FY26 profitability.

RateGain Travel Technologies traded higher over 9% to ₹712.10 after the travel and hospitality SaaS provider announced its Q4FY26 and FY26 results.

Futures & Options
Nifty May 2026 futures closed at 23,776.30, a premium of 57 points over the spot Nifty 50 close of 23,719.30, indicating improved sentiment and long positioning in the derivatives market. In the cash market, the Nifty 50 gained 64.60 points or 0.27%, while volatility remained relatively stable with India VIX rising marginally by 0.49% to 17.91.

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 declined on Friday as expectations of a record surplus transfer from the RBI supported sentiment and outweighed concerns around possible policy tightening and elevated global yields. The benchmark 10-year government bond yield ended at 7.0917%, lower than Thursday’s close of 7.1134%, snapping a four-session rising streak. Traders said investors turned optimistic ahead of the RBI’s expected surplus transfer announcement, which is estimated at ₹2.9 trillion to ₹3.2 trillion.

A sizeable dividend transfer is expected to provide fiscal support to the government at a time when elevated Brent Crude prices and tensions in West Asia continue to pressure India’s external balances and inflation outlook.

Market participants also balanced domestic liquidity optimism against external risks, including rising US Treasury yields and narrowing India-US yield spreads. Meanwhile, expectations of possible policy tightening by the RBI to support the rupee continued to keep overall bond market sentiment cautious.

Forex
Indian rupee strengthened sharply on Friday, closing below the 96-per-dollar mark for the first time in a week after aggressive intervention by the Reserve Bank of India helped stabilise the currency. The rupee ended at 95.69 against the US dollar, gaining 0.5% from the previous close. According to market participants, the RBI sold an estimated $2-3 billion in the foreign exchange market on Thursday and continued intervention through state-run banks on Friday.

The currency recovery came amid continued concerns around elevated Brent Crude prices, foreign outflows and external sector pressures linked to tensions in West Asia.

Crypto
Crypto markets remained cautious on Friday as investors balanced macroeconomic uncertainty and elevated global yields against improving institutional participation in select digital assets. Bitcoin briefly moved above the $78,000 mark before slipping back toward the mid-$77,000 range. Bitcoin was last trading near $77,214, down 1.12% over the past 24 hours, with market capitalisation around $1.53 trillion and daily trading volumes near $28.4 billion.

Ethereum traded near $2,109, declining around 0.88% as broader momentum across large-cap altcoins remained subdued. Investor sentiment continued to be influenced by elevated bond yields, global macroeconomic uncertainty and developments in West Asia, although softer Brent Crude prices provided some support to overall risk appetite.

US Stock Futures
US stock futures traded cautiously higher on Friday as investors awaited further developments in negotiations between the US and Iran over a potential peace agreement. Futures linked to the Dow Jones Industrial Average, S&P 500 and Nasdaq-100 rose around 0.3% after markets rebounded in the previous session on signs of diplomatic progress.

Investor sentiment improved after comments from Marco Rubio and Iranian media reports suggested progress in talks aimed at easing tensions in West Asia. However, markets remained cautious as major disagreements reportedly continued to persist. The S&P 500 is also on track for its longest weekly winning streak since 2023 as investors monitor geopolitical developments, bond yields and the outlook for inflation and interest rates.

US Treasury Notes
Yields on US Treasury moved lower on Friday, providing some relief to global equity markets after a volatile week in fixed-income trading driven by inflation and geopolitical concerns. The benchmark 10-year Treasury yield declined more than 2 basis points to around 4.564%, easing from highs near 4.69% touched earlier in the week. Meanwhile, the policy-sensitive 2-year Treasury yield remained relatively steady near 4.083%.

Investor sentiment improved after tentative progress in US-Iran negotiations helped reduce immediate concerns around energy supply disruptions and inflation. The decline in Brent Crude prices supported a relief rally across bond markets and risk assets.

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