Markets concluded a volatile Thursday session near flat, as initial gains driven by easing geopolitical tensions and declining crude prices were overshadowed by widespread profit-taking that erased over 200 points from intraday highs. This shift highlights a market still navigating between segments of optimism and persistent macroeconomic challenges.
“…valuations in large caps are now below long-term averages after the recent correction,” remarked Sorbh Gupta, Head of Equity at Bajaj Finserv AMC, indicating a cautious yet selective opportunity in the market.
The Nifty 50 ended at 23,654.70, down 4.30 points or 0.02 percent, following an intraday peak of 23,859.90 shortly after the market opened. The Sensex dropped 135.03 points or 0.18 percent to close at 75,183.36. Initially, the index surged by 171 points, buoyed by a positive global sentiment following Nvidia’s earnings and tentative advancements in US-Iran negotiations. However, selling pressure emerged around the 23,850 threshold and persisted throughout the trading session.
Broader markets demonstrated relative resilience. The Nifty Smallcap 100 rose by 0.63 percent, while the Nifty Midcap 100 slightly declined by 0.04 percent. Market breadth remained favorable for the third consecutive session, with the BSE advance-decline ratio registering at 1.37, as 290 stocks within the Nifty 500 closed higher. The India VIX decreased by 3.35 percent to settle at 17.82, indicating a cooling of volatility, despite the benchmark indices facing challenges.
From a sector perspective, Realty, Cement, Consumer Durables, and Healthcare showed gains, while IT, FMCG, and Media sectors retracted. Notably, while the Nifty IT surged by 3.2 percent, profit booking on heavyweight stocks prevented a broader index uptick. Major laggards included Bajaj Finance, Hindustan Unilever, and Tech Mahindra, while Grasim, IndiGo, and Apollo Hospitals emerged as top gainers.
A key highlight of the session was the Indian rupee, which broke a nine-day losing streak by appreciating 62 paise against the dollar, making it the best-performing currency in Asia for the day. This recovery was supported by a pullback in crude oil prices and Reserve Bank of India (RBI) interventions; however, the rupee had previously breached the 96.50 per dollar mark, with elevated Brent crude prices continuing to pressure India’s import bills, current account, and inflation dynamics.
On the macroeconomic front, Siddharth Chaudhary, head of fixed income at Bajaj Finserv AMC, noted that “…growth moderation is expected to anchor yields, while supportive liquidity should prevent any disorderly rise in rates,” suggesting that the RBI may maintain its rate stance amidst rising external pressures. Foreign Portfolio Investor (FPI) outflows, while reducing to ₹70,000 crore in April from ₹1.2 lakh crore in March, continue to strain market sentiment.
Looking ahead, the markets are set for a busy agenda. The first quarter CY2026 GDP growth rate announcement is anticipated, and attention will be focused on the RBI’s June monetary policy decision, ongoing developments in US-Iran talks, and the trajectory of crude oil prices. Analysts predict that until a definitive close above the 23,800–24,000 resistance band is achieved, the market will likely remain range-bound, with a stock-specific approach prevailing.
Published on May 21, 2026
