Closing Bell: Sensex, Nifty 50 End Flat on May 18; IT Stocks Rebound, Rupee Hits Record Low Amid Rising Crude Oil Prices

Market Update at 04:00 PM: Indian equity benchmarks ended mostly flat on Monday, May 18, after recovering sharply from Intraday lows, supported by a rebound in information technology stocks following last week’s selloff triggered by concerns over AI-led disruption.

The Nifty 50 opened more than 160 points lower and slipped to an intraday low of 23,317.10 during early trade. However, the index staged a strong V-shaped recovery, climbing over 300 points from the day’s low to settle marginally higher. At the closing bell, the Nifty 50 ended at 23,649.25, up 6.45 points or 0.03 per cent.

The Sensex also recovered from early losses and closed 77.05 points, or 0.10 per cent, higher at 75,315.04. Meanwhile, the India VIX index surged more than 4 per cent, indicating heightened market volatility amid global uncertainty.

Global crude oil prices remained elevated as geopolitical tensions linked to the Iran conflict continued to fuel supply concerns. Brent crude rose around 1 per cent to trade near USD 110.50 per barrel, while U.S. crude gained 1.2 per cent to USD 106.72 per barrel.

Importantly, futures contracts for September crossed the USD 100 mark, while December contracts touched a record high, reflecting expectations of prolonged supply shortages in the energy market.

The Indian rupee weakened sharply against the U.S. dollar, falling 0.45 per cent to hit a fresh all-time low of 96.39. The decline came as rising crude oil prices and the ongoing Iran conflict pushed global bond yields higher, dampening investor sentiment and increasing concerns for India, one of the world’s largest crude oil importers.

On the sectoral front, only three out of the 11 major sectoral indices ended in positive territory.

The Nifty IT index emerged as the top-performing sector, rising 2.43 per cent as all its constituents ended in the green. The rebound helped the broader market recover from the day’s lows.

In contrast, the Nifty Media index was the worst-performing sector, declining 2.24 per cent and snapping its two-session winning streak.

Broader markets also ended weak. The Nifty Midcap index slipped 0.15 per cent, while the Nifty Smallcap 100 index declined 1.26 per cent.

Among stock-specific movers, Tata Steel declined 3.29 per cent after reporting a weaker-than-expected fourth-quarter profit.

Power Grid Corporation of India fell 3.04 per cent despite posting nearly 10 per cent growth in its March quarter profit.

Amber Enterprises witnessed a sharp selloff, tumbling 15.61 per cent after the company highlighted margin pressure following its quarterly earnings announcement.

On the positive side, Gland Pharma surged 15.43 per cent after the pharmaceutical company reported a 97 per cent jump in its March quarter net profit.

Bharti Airtel contributed the most to the Nifty 50’s gains, adding 21.83 points to the index. Infosys supported the rally with a contribution of 17.90 points, while ICICI Bank added 10.27 points.

On the downside, State Bank of India emerged as the biggest drag on the index, pulling it down by 21.45 points. Tata Steel weighed on the benchmark by 12.70 points, while Power Grid Corporation of India dragged the index lower by 9.12 points.

Market breadth remained firmly in favour of declining shares on May 18. Out of 3,415 stocks traded on the NSE, 941 stocks advanced, while 2,382 declined and 92 remained unchanged.

A total of 55 stocks touched their 52-week highs during the session, whereas 69 stocks hit their 52-week lows.

Additionally, 58 stocks were locked in their Upper Circuits, while 213 stocks hit Lower Circuits, reflecting broader weakness across the market.

Market Update at 2:29 PM: Indian benchmark indices recovered from the day’s low in afternoon trade on Monday, supported by gains in information technology stocks, even as broader market sentiment remained cautious due to rising geopolitical tensions in the Middle East and a sharp rise in crude oil prices.

As of 2:00 PM, the Nifty 50 was down 5.80 points, or 0.02 per cent, at 23,642.90. The Sensex, however, managed to trade higher by 59.42 points, or 0.08 per cent, at 75,279.97.

Among the top laggards on the Nifty 50 index were Power Grid Corporation of India, Tata Steel, and Titan Company.

The broader markets remained under pressure, with the Nifty MidCap index declining 0.73 per cent and the Nifty SmallCap index falling 1.54 per cent, indicating weakness beyond frontline stocks.

On the sectoral front, the Nifty Consumer Durables, Nifty Realty, Nifty PSU Bank, and Nifty Media indices underperformed during the session. In contrast, the Nifty IT index outperformed and helped benchmark indices recover from intraday lows.

Investor sentiment remained fragile after U.S. President Donald Trump warned Iran in a social media post, saying that the time is “ticking fast” for Tehran and cautioning that if a decision is not made soon, “nothing will be left.” The comments further intensified concerns over escalating tensions in the Middle East.

Meanwhile, rising geopolitical uncertainty pushed crude oil prices higher. Brent crude’s May futures contract was trading 1.51 per cent higher at USD 110.91 per barrel on the Intercontinental Exchange.

Market Update at 12:19 PM: Indian equity benchmarks recovered partially from the day’s low during afternoon trade on Monday, supported by gains in information technology stocks. However, broader market sentiment remained weak amid escalating geopolitical tensions involving Iran and rising crude oil prices.

As of 12 PM, the Nifty 50 was down 154.85 points, or 0.65 per cent, at 23,476.95. The Sensex declined 496.96 points, or 0.66 per cent, to 74,722.81.

Among the Top Losers on the Nifty 50 index were Power Grid Corporation of India, Tata Steel, and Titan Company. Selling pressure was visible across several sectors, particularly consumer durables, realty, PSU banks, and media stocks.

The broader markets also remained under pressure. The Nifty MidCap index traded 0.92 per cent lower, while the Nifty SmallCap index fell 1.66 per cent, indicating weakness beyond frontline indices.

Sectorally, the Nifty Consumer Durables, Nifty Realty, Nifty PSU Bank, and Nifty Media indices underperformed the benchmark indices. On the other hand, the Nifty IT index emerged as the top sectoral gainer, helping markets recover from intraday lows.

Investor sentiment remained cautious after U.S. President Donald Trump warned Iran in a social media post, stating that time was “ticking fast” for Tehran and suggesting severe consequences if a decision was not made soon. The remarks added to concerns over geopolitical instability in the Middle East.

Meanwhile, Brent crude oil prices continued to surge amid fears of supply disruptions. Brent crude’s May futures contract was trading 1.51 per cent higher at USD 110.91 per barrel on the Intercontinental Exchange.

Market Update at 09:35 AM: Indian equity benchmarks opened sharply lower on Monday as rising geopolitical tensions between the U.S. and Iran triggered a spike in crude oil prices, weighing heavily on investor sentiment. Weak global cues and concerns over inflationary pressure from higher energy prices added to the market selloff.

At 9:17 AM, the Nifty 50 was trading 258.55 points, or 1.09 per cent, lower at 23,382.60. The Sensex declined 855.87 points, or 1.14 per cent, to 74,382.12.

Among the top laggards on the Nifty 50 were Power Grid Corporation, Tata Steel, and Titan Company, as broad-based selling pressure hit metal, infrastructure, and consumer stocks.

The weakness extended to the broader market as well. The Nifty MidCap index slipped 1.04 per cent, while the Nifty SmallCap index fell 1.15 per cent, indicating risk-off sentiment among investors.

On the sectoral front, the Nifty Realty, Nifty Auto, and Nifty Media indices underperformed amid concerns that rising fuel costs could impact demand and profitability. However, the Nifty IT index showed relative resilience and outperformed the broader market.

Investor sentiment turned cautious after U.S. President Donald Trump said in a social media post that time was “ticking fast” for Iran. He warned that if Tehran failed to make a decision soon, “nothing will be left,” escalating fears of a deeper geopolitical conflict in the Middle East.

Crude oil prices surged following the remarks. Brent crude’s May futures contract rose 1.78 per cent to USD 111.13 per barrel on the Intercontinental Exchange, intensifying concerns over global inflation and higher import costs for oil-dependent economies such as India.

Meanwhile, precious metals traded lower in early trade. Gold futures declined 0.56 per cent, while silver futures dropped 2.61 per cent.

Pre-Market Update at 7:48 AM: The Indian stock market is likely to open on a cautious note on Monday, May 18, as rising geopolitical tensions in the Middle East and higher crude oil prices continue to weigh on global investor sentiment. Trends in Gift Nifty indicate a weak start for benchmark indices BSE Sensex and Nifty 50 after a volatile end to last week.

Gift Nifty was trading near the 23,521 mark, down more than 186 points from the previous close of Nifty futures, indicating potential pressure on domestic equities at the opening bell.

Asian markets traded lower, while Wall Street ended sharply weaker on Friday as rising crude oil prices and higher bond yields sparked concerns over inflation and global economic stability.

Investor sentiment remained fragile after tensions between the U.S. and Iran escalated further over the weekend. A drone strike near the Barakah Nuclear Energy Plant in the United Arab Emirates triggered fresh geopolitical concerns despite no radiation leak or casualties being reported.

The UAE Defence Ministry confirmed that two drones were intercepted, while another drone struck near the facility. The International Atomic Energy Agency stated that one reactor briefly switched to emergency diesel generators following the incident.

Meanwhile, U.S. President Donald Trump intensified his rhetoric against Iran, warning that “the clock is ticking” and urging Tehran to move quickly in ongoing negotiations. The developments have raised concerns over potential disruptions in the Strait of Hormuz, a critical global oil supply route.

In a positive development for global trade, the U.S. and China agreed to establish new trade and investment mechanisms during Trump’s visit to Beijing. According to a White House fact sheet, both nations will work towards a more stable and reciprocal economic relationship.

However, the positive sentiment from the talks was overshadowed by rising geopolitical uncertainty and concerns over inflationary pressures from higher energy prices.

Crude oil prices surged sharply amid fears of supply disruptions linked to the U.S.-Iran conflict.

Brent crude climbed 2.33 per cent to USD 111.81 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 2.79 per cent to USD 108.36 per barrel.

The sharp rise in oil prices has increased concerns over inflation, especially for emerging markets like India that heavily depend on crude imports.

Global bond yields also moved sharply higher, reflecting inflation worries.

The benchmark U.S. 10-year Treasury yield stood at 4.607 per cent, while the two-year Treasury yield was at 4.085 per cent.

Japanese government bond yields also surged, with the 10-year JGB yield touching 2.775 per cent, its highest level since October 1996. The 20-year yield climbed to 3.735 per cent.

The U.S. dollar strengthened against major global currencies. The dollar index edged higher to 99.393, adding pressure on emerging market currencies including the Indian rupee.

From the derivatives segment, the Put-Call Ratio (PCR) stood at 0.94, indicating a cautious undertone in the market.

On the Put side, major open interest was concentrated at the 23,000 and 23,500 strikes, suggesting strong support zones.

On the Call side, significant open interest addition was seen at the 24,000 and 24,500 strikes, indicating that the 24,000 level may act as immediate resistance for Nifty 50.

Technically, Nifty 50 is expected to find immediate support in the 23,450–23,550 range. The crucial downside support remains near last week’s low of 23,262.

A break below this level could intensify selling pressure and drag the index towards the April 8 gap support near 23,153.

On the upside, the 23,830–23,860 zone remains a key resistance area. A sustained move above this range could revive bullish momentum towards the 24,000–24,070 region, where the 20-day moving average is placed.

Several companies are scheduled to announce quarterly earnings on May 18, including Indian Oil Corporation, Afcons Infrastructure, Ola Electric Mobility, Apollo Micro Systems, Astral, DOMS Industries, Indraprastha Gas, Puravankara, and Zydus Wellness.

For Monday, Steel Authority of India and Kaynes Technology India are under the F&O ban list.

On May 15, Foreign Institutional Investors (FIIs) bought Indian equities worth Rs 1,329.17 crore. Domestic Institutional Investors (DIIs), however, remained net sellers and offloaded shares worth Rs 1,958.82 crore.

Benchmark indices snapped a two-day winning streak on Friday amid profit booking, weak global cues, rising crude oil prices, and a sharp fall in the rupee.

The Sensex declined 161 points, or 0.21 per cent, to close at 75,237.99, while Nifty 50 slipped 46 points, or 0.19 per cent, to settle at 23,643.50.

U.S. stock markets closed sharply lower on Friday as investors reacted to rising crude oil prices and higher Treasury yields.

The Dow Jones Industrial Average fell 537.29 points, or 1.07 per cent, to 49,526.17. The S&P 500 dropped 1.24 per cent to 7,408.50, while the Nasdaq Composite declined 1.54 per cent to 26,225.15.

Energy stocks emerged as the only gainers among the S&P 500 sectors, while Semiconductor shares dragged markets lower. The Philadelphia SE Semiconductor Index plunged 4 per cent.

Gold prices remained largely steady in early Asian trade as investors assessed the possibility of further interest rate hikes by the U.S. Federal Reserve.

Spot gold traded flat at USD 4,539.13 per ounce.

Disclaimer: The article is for informational purposes only and not investment advice.

What’s your strategy for today’s volatile market? Share in the comments!