Benchmarks Recover Late Losses Despite Rupee Weakness

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

By Dehuti Jani

May 20, 2026 at 11:35 AM IST

Indian equity benchmarks ended marginally higher on Wednesday after recovering from deep intraday losses, supported by gains in heavyweight Reliance Industries and select auto and metal stocks. The Nifty50 rose 0.17% or 41 points to close at 23,659 while the BSE Sensex added 0.16% or 117.54 points to settle at 75,318.39.

Markets had traded sharply lower during the session as continued weakness in the rupee and rising global bond yields weighed on investor sentiment. The Indian rupee slipped to another record low against the US dollar amid concerns over elevated Brent Crude prices and the prolonged conflict in West Asia.

Global sentiment remained fragile as the Iran conflict continued to pressure international bond markets, pushing US Treasury yields higher and reducing the appeal of emerging market equities. Foreign investors have sold over $23 billion worth of Indian equities so far in 2026, surpassing last year’s record outflows.

Sectorally, oil & gas and auto stocks outperformed, while FMCG and media shares lagged. Hindalco Industries, Reliance Industries and Bajaj Auto emerged as the top gainers on the Nifty50. Broader markets were relatively resilient, with the Nifty MidCap index rising 0.49%, while the Nifty SmallCap index ended nearly flat.

Top Movers of the Day

Reliance Industries climbed around 3% to roughly ₹1,360, helping pull the Nifty off its intraday lows as investors rotated into oil and gas heavyweights on cooling Brent prices and softer bond yields.

Hindalco Industries jumped 3.5% to near ₹1,085 after its US arm Novelis delivered upbeat commentary and strong operating performance, easing worries around global demand and supporting the metal pack.

Bajaj Auto gained over 2.5% to ₹10,462 on better‑than‑expected Q4 earnings and solid export demand underpinned sentiment in two‑wheeler and broader auto names despite lingering macro concerns.

GE Vernova T&D India Ltd surged nearly 7% to about ₹4,695 after reporting an 89% year‑on‑year jump in Q4 net profit to ₹35.2 billion and robust growth in revenue and order inflows, reinforcing confidence in power‑equipment spending.

BLS International Services advanced 2.2% to nearly ₹268 after Q4 net profit rose 29% year‑on‑year to about ₹17.8 billion, with strong execution and steady order wins driving optimism on earnings momentum.

KDDL hit the 20% upper circuit to close at ₹2,614.20 on heavy volumes after investors chased the niche watch‑components maker on expectations of sustained demand strength and favourable commentary on margins.

PI Industries tumbled 7.5% to roughly ₹2,890 after the agrochemical major reported a 39% year‑on‑year drop in Q4 profit to around ₹20 billion, stoking concerns over slowing growth and pressure on margins.

Zee Entertainment Enterprises dropped over 5% to about ₹82.90 as continued uncertainty over strategic direction and weak sector flows kept investors cautious on media stocks.

BASF India declined around 5% to roughly ₹3,614 after the stock came under pressure from softer chemical demand and profit‑taking, following a strong run-in speciality‑chemicals counter.

IFB Industries slipped more than 4% to close to ₹1,044 amid selling in consumer‑durables names, with worries over discretionary demand and input‑cost pressures weighing on the stock.

Grasim Industries gained 1.63% to ₹2,983 after reporting a 31% YoY rise in Q4FY26 net profit to ₹19.57 billion from ₹14.96 billion a year earlier.

Manappuram Finance rose around 1.3% to ₹319.45 as investors continued to favour gold finance companies amid elevated gold prices and market volatility.

Tata Communications gained nearly 7.5% to around ₹1,771 after strong buying interest in technology and communication stocks.

Futures & Options
Nifty May 2026 futures closed at 23,695, a premium of 36 points over the spot Nifty 50 close of 23,659, indicating mildly improved sentiment in the derivatives market despite continued macroeconomic uncertainty. In the cash market, the Nifty 50 gained 41 points or 0.17%, while volatility eased further with India VIX declining 1.25% to 18.44.

Among stock futures, HDFC Bank, Infosys, and Reliance Industries 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 ended slightly lower on Wednesday despite pressure from rising US Treasury yields and continued foreign outflows from emerging markets. The benchmark 6.48% 2035 government bond yield ended at 7.0761%, easing from Tuesday’s close of 7.1017%, although yields had traded higher earlier in the session. Investors remained cautious as elevated global borrowing costs and rupee weakness continued to weigh on sentiment.

Global bond markets remained under pressure after the 30-year US Treasury yield touched a 19-year high, while the 10-year US Treasury yield climbed to a 16-month high. The narrowing yield spread between Indian and US government bonds reduced the attractiveness of emerging-market debt, contributing to continued capital outflow concerns. Persistent strength in Brent Crude prices and uncertainty surrounding the conflict in West Asia also continued to influence the domestic fixed-income market.

Forex
Indian rupee weakened to another all-time low on Wednesday as stalled US-Iran peace talks kept Brent Crude prices elevated and continued to pressure emerging market currencies. The rupee fell to a record intraday low of 96.96 against the US dollar before ending the session at 96.82. The currency was weighed down by rising oil import costs, foreign outflows and concerns around India’s external balances.

Investor sentiment also weakened as global bond markets extended their selloff, with traders increasing bets that the Federal Reserve may need to keep interest rates higher for longer or potentially tighten further in 2026. Oil prices remained near $110 per barrel after Donald Trump said military action against Iran was still possible despite ongoing negotiations.

Crypto
Crypto markets showed mixed trends on Wednesday as investors balanced persistent macroeconomic concerns against continued long-term confidence in digital assets. Bitcoin traded near $77,000 after a volatile week, hovering around $77,164 during the latest session with intraday movement between roughly $76,180 and $77,206. Despite recent weakness, Bitcoin remained significantly above levels seen in previous years, reflecting continued institutional interest.

Ethereum traded in the $2,100-$2,135 range and continued to test key support levels after sustained selling pressure linked to higher inflation and rising US Treasury yields.

US Stock Futures
US stock futures moved higher on Wednesday as easing oil prices improved risk sentiment ahead of quarterly earnings from Nvidia, one of the most closely watched companies in the AI sector. Futures linked to the S&P 500 rose 0.4%, while Nasdaq-100 futures gained 0.8% after recovering from earlier losses. Futures tied to the Dow Jones Industrial Average advanced around 75 points or 0.2%.

Investor sentiment improved after a modest decline in Brent Crude prices eased some inflation concerns, though markets remained cautious amid continued geopolitical uncertainty in West Asia and elevated global bond yields.

US Treasury Notes
Yields on US Treasury lower on Wednesday after a sharp selloff in global bond markets driven by persistent inflation concerns and elevated energy prices. The benchmark 10-year Treasury yield slipped nearly 2 basis points to around 4.653% after touching 4.687% in the previous session, its highest level since January 2025.

Meanwhile, the policy-sensitive 2-year Treasury yield declined around 2 basis points to 4.106% as investors reassessed expectations around future Federal Reserve policy moves. Despite the modest pullback, yields remained near multi-month highs amid concerns that persistent inflation, elevated Brent Crude prices and geopolitical tensions in West Asia could keep interest rates higher for longer.

Top News