Post Session: Quick Review

Indian equity benchmarks ended near the day's lows on Monday amid renewed uncertainty surrounding the potential US-Iran peace deal. After making a positive start, indices turned volatile amid continued selling by foreign institutional investors (FIIs). Selling pressure intensified in the second half of the session, with banking, FMCG, and auto stocks leading the fall, dragged the markets sharply lower.

Some of the important factors in trade:

Finance Ministry sees cautious resilience in India's near-term economic outlook: There was some cautiousness as the Finance Ministry’s latest Monthly Economic Review, stated that the near-term outlook for the Indian economy is one of cautious resilience. It said with a below-normal monsoon forecast and a likely moderation in economic activity, overall consumption demand may face headwinds in the coming months.

India’s forex reserves drop $7.5 billion to $681.38 billion: Sentiment remained downbeat after RBI data showed that India's forex reserves declined by $7.511 billion to $681.384 billion during the week ended May 22.

Oman offers India reliable trade route beyond Strait of Hormuz: Traders overlooked think tank GTRI stating that the trade pact with Oman holds strategic significance for India, as much of Muscat's coastline lies outside the Strait of Hormuz, unlike other Gulf nations, enabling it to remain a reliable trade and energy gateway for India even during regional conflicts, disruptions or geopolitical instability

On the global front: European markets are trading mostly lower, as Germany's inflation slowed in May and unemployment declined unexpectedly in April. Asian markets ended mostly in green, despite China's manufacturing sector growth softened in May. 

The BSE Sensex ended at 74267.34, down by 508.40 points or 0.68% after trading in a range of 74203.68 and 75367.93. There were 6 stocks advancing against 24 stocks declining on the index. (Provisional)

The few gaining sectoral indices on the BSE were IT up by 2.39%, TECK up by 1.34%, Metal up by 0.87% and Energy up by 0.17% while, Power down by 2.90%, Capital Goods down by 2.44%, Utilities down by 2.12%, Industrials down by 2.11% and Realty down by 2.03% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tech Mahindra up by 3.80%, Infosys up by 3.69%, TCS up by 1.96%, Interglobe Aviation up by 1.03% and HCL Technology up by 0.98%. On the flip side, ITC down by 2.67%, Hindustan Unilever down by 2.61%, NTPC down by 2.17%, Mahindra & Mahindra down by 2.07% and Kotak Mahindra Bank down by 1.86% were the top losers. (Provisional)

Meanwhile, India’s manufacturing sector growth accelerated further in the month of May 2026, with quicker increases in buying levels, new orders and output, despite cost pressures among strongest in four years. The war in the Middle East continued to exert pressure on cost burdens. Purchasing prices rose at the second-fastest pace since April 2022 (behind April), while the rate of output charge inflation was below the average seen over the past year. 

According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 55.0 in May from 54.7 in April. On the employment front, greater production requirements induced another round of job creation across India's manufacturing industry. The rate of expansion was solid, despite slowing from April.

The survey report further noted that outstanding business volumes rose for the second straight month in May, but at a marginal pace that was broadly similar to April. Meanwhile, business confidence remained positive, with companies hoping that cost pressures will fade later in the year. Advertising and strong order pipelines also supported optimism towards growth prospects.

The CNX Nifty ended at 23382.60, down by 165.15 points or 0.70% after trading in a range of 23357.95 and 23733.70. There were 10 stocks advancing against 40 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tech Mahindra up by 3.71%, Infosys up by 3.67%, Coal India up by 3.21%, TCS up by 1.70% and JSW Steel up by 1.67%. On the flip side, Hindustan Unilever down by 3.21%, Tata Consumer Products down by 2.98%, Max Healthcare Inst down by 2.76%, Shriram Finance down by 2.55% and ITC down by 2.53% were the top losers. (Provisional)

European markets were trading mostly in green; France’s CAC rose 13.86 points or 0.17% to 8,197.20 and Germany’s DAX gained 7.1 points or 0.03% to 25,111.80, while UK’s FTSE 100 decreased 15.82 points or 0.15% to 10,393.46.

Asian markets settled mostly higher on Monday tracking Wall Streets’ gains on Friday amid expectations for continued demand for semiconductors and AI-related gear. Meanwhile, investors were closely watching on developments in the Middle East, where negotiations between the US and Iran toward a permanent ceasefire agreement continued to face significant challenges. Markets were also awaiting speeches from several Federal Reserve officials as well as key US manufacturing and May payrolls report due this week, which are expected to provide further guidance on the Federal Reserve’s policy outlook. Japan’s Nikkei closed at a fresh historic peak as start-up investor SoftBank Group officially overtook Toyota Motor to become the country's most valuable listed company, marking a significant milestone driven by the global artificial intelligence boom. The Japanese yen remained under heavy depreciation pressure near the critical threshold of 160 level as data showed Japan's biggest companies reduced capital spending in the first quarter. However, Chinese market declined following official data that showed weakening momentum in the country's manufacturing sector in May. The Indonesian, Malaysian and Singaporean markets were remained close on account of holiday.