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Easing geopolitical worries take markets higher for the week
May-22-2026

Indian markets ended higher in passing week amid signs of easing geopolitical concerns. The U.S. Secretary of State Marco Rubio said there had been ‘some good signs’ in talks with Iran. On domestic front, recovery in rupee from a record low of over 96 per dollar mark and strength in banking stocks also provided support to the markets. 

Some of the major developments during the week are:

India sees 13.78% rise in merchandise exports in April: The commerce ministry in its latest data has showed that India’s merchandise exports rose by 13.78 per cent to $43.56 billion in April 2026 as compared to $38.28 billion in April 2025 despite supply-chain disruptions linked to the crisis in West Asia.

Eight key infrastructure sectors’ output growth rises in April: The eight key infrastructure sectors’ output growth rose to 2-month high of 1.7% in April 2026, supported by higher output of steel, cement and electricity. The eight core sectors had recorded growth of 1% in April 2025, 1.2% in March 2026.

India's unemployment rate hits six-month high of 5.2% in April: The Periodic Labour Force Survey (PLFS) has showed that India's unemployment rate among persons of age 15 years and above inched higher to 5.2% in April 2026 from 5.1% in the previous month, reflecting highest ratio since October 2025.

India's private sector growth eases marginally in May: The HSBC Flash India - Manufacturing PMI eased from 54.7 in April to 54.3 in May, while Services PMI rose to 58.9 in May from 58.8 in April. Besides, the HSBC Flash India PMI Composite Output Index was down to 58.1 in May from 58.2 in April.

ICRA lowers India’s GDP growth estimate to 6.2% for FY27: Rating agency ICRA has lowered India’s GDP growth estimate (at constant 2022-23 prices) to 6.2% for fiscal year 2026-27 (FY27) from the earlier estimate of 6.5%, citing elevated crude oil prices driven by the ongoing West Asia crisis.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex surged 177.36 points or 0.24% to 75,415.35 during the week ended May 22, 2026. On the sectoral front, S&P BSE Information Technology was up by 1,101.16 points or 4.08% to 28,065.42, S&P BSE Realty was up by 135.71 points or 2.30% to 6,044.70, and S&P BSE TECK was up by 330.10 points or 2.25% to 14,976.69 were the top gainers, while S&P BSE Fast Moving Consumer Goods was down by 274.58 points or 1.46% to 18,550.97, S&P BSE PSU was down by 203.61 points or 0.96% to 20,972.55, and S&P BSE Consumer Durables was down by 305.13 points or 0.52% to 57,857.79 were the few losers on the BSE.

NSE movement for the week

The Nifty surged 75.80 points or 0.32% to 23,719.30. On the National Stock Exchange (NSE), Nifty IT was up by 1195.55 points or 4.31% to 28,912.45, Nifty Mid Cap 100 increased 822.15 points or 1.36% to 61,389.30, Bank Nifty was up by 345.00 points or 0.64% to 54,055.35, and Nifty Next 50 gained 502.80 points or 0.73% to 69,783.05.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 78,593.73 crore and gross sales of Rs 81,919.56 crore, leading to a net outflow of Rs 3,325.83 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 10,246.87 crore against gross sales of Rs 8,112.85 crore, resulting in a net inflow of Rs 2,134.02 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 295.84 crore and gross sales of Rs 190.72 crore, leading to a net inflow of Rs 105.12 crore.

Industry and Economy

With an aim of reducing import dependence, Commerce and Industry Minister Piyush Goyal has asked the industry to identify imported goods and explore opportunities to manufacture them domestically. He also emphasised the importance of boosting exports and prioritizing the purchase of goods made in India over imports. He encouraged stakeholders to study import trends using the Commerce Ministry’s trade portal and identify opportunities for domestic manufacturing and import substitution. He said despite global economic uncertainties, triggered by Russia-Ukraine and West Asia crisis, India's exports rose about 5 per cent to $863.11 billion in 2025-26. He noted that this year's target is $1 trillion. This is a big target, and there is need to work together for this.

Outlook for the coming week

Indian markets ended higher in the passing week amid easing geopolitical concerns. Investors evaluated ongoing diplomatic efforts between the US and Iran aimed at securing a peace deal.

In the coming week, on the economy front, investors will be eyeing Industrial Production data for the month of April, Government Budget value and Foreign Exchange Reserves data. Meanwhile, India’s Industrial production growth slowed to 4.1% in March 2026 from 5.1% in February 2026.

In the ongoing result season, traders will be eyeing earnings of prominent companies, including Suzlon Energy, Rail Vikas Nigam, Sundaram Finance, ONGC, Bata India, Ashok Leyland, Alkem Laboratories, Apar Industries, Asian Paints and Glenmark Pharma, etc.

On the global front, investors would be eyeing few economic data from world’s largest economy, United States (US), starting with Chicago Fed National Activity Index, CB Consumer Confidence and Dallas Fed Manufacturing Index on May 26, followed by Redbook and Dallas Fed Services Index on May 27, API Crude Oil Stock, Core PCE Price Index, GDP Growth Rate, Continuing Jobless Claims, New Home Sales and EIA Crude Oil Stocks on May 28, and Goods Trade Balance on May 29.

Top Gainers 

  • Wipro up by 7.87% was the top gainer on Nifty for the week - Wipro caught investors’ attention after its shareholders approved the Rs 15,000 crore share buyback, which will be executed at a price of Rs 250 per share. Besides, weakness in the local currency against the US dollar also supported the gains in IT sector stocks.
  • Grasim Industries up by 7.37% was another top gainer on Nifty for the week - Grasim Industries traded higher after its Q4 revenue numbers beat street expectations. The total income of the company has increased by 14.96% at Rs 51,328.65 crore for Q4FY26 as compared to Rs 44,650.67 crore for the corresponding quarter previous year.

Top Losers 

  • Tata Steel down by 5.40% was the top loser of the week on Nifty - Tata Steel came under pressure along with other metal stocks as fears of possible rate hike by Federal Reserve and weakening global industrial demand due to West Asia crisis kept investors on edge.
  • Oil & Natural Gas Corporation (ONGC) down by 3.62% was another top loser of the week on Nifty - ONGC came under pressure ahead of its fourth quarter result, scheduled to release on May 26, 2026. Moreover, global crude oil prices have cooled off to trade near $105 a barrel mark.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 23,859.90 on May 21 and lowest level of 23,317.10 on May 18. On the last trading day, the Nifty closed at 23,719.30 with weekly gain of 75.80 points or 0.32 percent. For the coming week, 23,404.30 followed by 23,089.30 are likely to be good support levels for the Nifty, while the index may face resistance at 23,947.10 and further at 24,174.90 levels.

US Market

The U.S. markets traded higher during the week amid growing optimism over a possible easing of Middle East tensions. President Trump said that negotiations with Iran were in final stages, with a possible agreement to restart peace talks in sight.

Some of the major developments during the week are:  

Weekly jobless claims in U.S. edge lower in week ended May 16: Initial jobless claims dipped to 209,000, a decrease of 3,000 from the previous week's revised level of 212,000. 

U.S. housing starts pull back in April: Housing starts slumped by 2.8 percent to an annual rate of 1.465 million in April after soaring by 12 percent to an upwardly revised rate of 1.507 million in March. 

Philly Fed index turns negative in May: The Philly Fed said its diffusion index for current general activity plummeted to a negative 0.4 in May from a positive 26.7 in April.

U.S. pending home sales jump in April: The National Association of Realtors (NAR) said its pending home sales index shot up by 1.4 percent to 74.8 in April after surging by 1.7 percent to an upwardly revised 73.8 in March.

Homebuilder confidence in U.S. rebounds in May: The NAHB/Wells Fargo Housing Market Index climbed to 37 in May after slumping to a seven-month low of 34 in April.

European Market

European markets garnered gains during the passing week, amid renewed optimism about signs of progress in U.S.-Iran peace talks.

Some of the major developments during the week are:

Italy current account surplus grows in March: The current account surplus rose to EUR 1.75 billion from EUR 0.28 billion in the corresponding month last year. 

Eurozone current account surplus declines: The current account surplus fell to EUR 15 billion from EUR 26 billion in February. In the same period last year, the surplus totaled EUR 29 billion.

Eurozone inflation rises to 3.0% as estimated: The harmonized index of consumer prices posted an annual increase of 3.0 percent in April, up from 2.6 percent in March.

Spain trade gap narrows in March: The trade deficit dropped to EUR 4.4 billion in March from EUR 5.5 billion in the corresponding month last year. In February, there was a shortfall of EUR 3.3 billion.

Swiss GDP growth accelerates: Gross domestic product expanded 0.5 percent in the first quarter from the previous quarter. This was faster than the 0.2 percent growth posted in the fourth quarter of 2025.

Asian Market

Asian markets traded mixed during the passing week, as traders watched the ongoing diplomatic process to end U.S.-Iran hostilities in the Middle East with positivity.

Some of the major developments during the week are:

Japan core machinery orders slump in March: Japan’s core machinery orders, which exclude volatile sectors such as ships and electric power, fell 9.4 percent m-o-m to JPY 1,010.9 billion in March, reversing sharply from a 13.6% rise in prior month.

Japan's GDP grows in Q1 2026: Japan’s GDP grew 0.5 percent q-o-q in Q1 2026, accelerating from a downwardly revised 0.2 percent increase in Q4 and topping market forecasts of 0.4 percent.

Japan logs trade surplus in April: Japan’s trade balance swung to a surplus of JPY 301.9 billion in April 2026 from deficit of JPY 149.5 billion in same month a year earlier, sharply beating expectations for a shortfall of JPY 29.7 billion.

South Korea Consumer Confidence rises in May: South Korea’s Composite Consumer Sentiment Index rose by 6.9 points to 106.1 in May 2026, as households grew more optimistic about economic conditions and income prospects. 

Hong Kong inflation remains stable at 1.7% in April: The annual inflation rate in Hong Kong stood at 1.7 percent in April 2026, unchanged from the previous two months and remaining at its highest reading since May last year.
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