Opening Bell: Sensex Gains 320 Points, Nifty 50 Tops 23,700; IT Stocks Lead Rally Amid Global Optimism

Market Update at 09:35 AM: Indian equity benchmarks opened higher on Tuesday, supported by positive global cues and improving investor sentiment after easing geopolitical concerns in West Asia. The rally was led by information technology stocks, with strong buying seen across frontline counters.

At around 9:18 AM, the Nifty 50 was trading 87 points, or 0.37 per cent, higher at 23,726.6, while the Sensex gained 320.09 points, or 0.43 per cent, to trade at 75,651.53.

Among the Top Gainers on the Nifty 50 were Infosys, Tata Consultancy Services, and Tech Mahindra, as investors accumulated technology stocks following positive global trends.

Broader markets also traded in positive territory. The Nifty MidCap index rose 0.41 per cent, while the Nifty SmallCap index advanced 0.45 per cent, indicating broader participation in the market rally.

On the sectoral front, the Nifty IT index surged nearly 4 per cent, emerging as the top-performing sector in early trade. The Nifty Chemical and Nifty FMCG indices also outperformed the broader market. However, Banking and financial counters lagged, with the Nifty Private Bank, Nifty Bank, and Nifty Financial Services indices emerging as the key underperformers.

Meanwhile, fuel prices continued to remain in focus. Petrol and diesel prices were increased by 90 paise on Tuesday, marking the second price hike in less than a week. The increase comes amid ongoing tensions in West Asia, which have continued to disrupt energy supplies through the strategically important Strait of Hormuz.

On the global front, U.S. President Donald Trump stated that a planned military strike had been called off following requests from other Middle Eastern nations. Trump further said that a deal acceptable to both the U.S. and countries in West Asia would be reached, adding that the agreement would ensure there are no nuclear weapons involved.

Pre-Market Update at 7:48 AM: The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open cautiously on Tuesday, May 19, amid mixed global cues and volatility ahead of the weekly derivatives expiry. Trends in Gift Nifty indicate a flat-to-positive start for domestic equities.

Gift Nifty was trading around the 23,681 mark, higher by more than 66 points compared to the previous close of Nifty futures, indicating a mildly positive opening for the benchmark indices. Asian markets traded on a mixed note, while Wall Street ended mostly lower overnight amid profit booking in technology stocks.

Investor sentiment continues to be influenced by geopolitical developments in the Middle East. U.S. President Donald Trump said a planned strike on Iran had been halted after Tehran reportedly sent a peace proposal to Washington. Trump also stated that there is now a “very good chance” of reaching an agreement on Iran’s nuclear programme. The easing of geopolitical tensions helped calm global markets and weighed on crude oil prices.

Japan’s economy expanded at a faster-than-expected pace during the first quarter. The country’s real GDP rose at an annualised rate of 2.1 per cent, higher than market expectations of 1.7 per cent and above the revised 0.8 per cent growth recorded in the previous quarter. On a quarter-on-quarter basis, Japan’s economy grew 0.5 per cent, ahead of estimates of 0.4 per cent, providing support to Asian market sentiment.

Petrol and diesel prices were increased by 90 paise per litre on Tuesday, marking the second hike within a week. In New Delhi, petrol prices rose to Rs 98.64 per litre from Rs 97.77 earlier, while diesel prices increased to Rs 91.58 per litre from Rs 90.67 per litre. The latest fuel price hike is likely to keep inflation concerns in focus and may impact sectors sensitive to input and transportation costs.

Global bond markets stabilised as crude oil prices softened. The benchmark 10-year U.S. Treasury yield slipped to 4.5974 per cent after touching a more-than-one-year high in the previous session. The two-year Treasury yield also eased to 4.0564 per cent. Japanese government bond yields softened across the curve after hitting record highs earlier.

Crude oil prices dropped sharply after the announcement regarding the suspension of a possible U.S. strike on Iran. Brent crude futures for July delivery declined 2.25 per cent to USD 109.58 per barrel, while U.S. West Texas Intermediate crude futures for June delivery fell 0.98 per cent to USD 107.60 per barrel.

Gold prices remained largely steady amid a weaker U.S. dollar and hopes of easing geopolitical tensions. Spot gold held steady at USD 4,565.40 per ounce, while spot silver slipped 0.3 per cent to USD 77.58 per ounce. The U.S. dollar index, which measures the greenback against six major currencies, remained flat at 99.026.

From the derivatives perspective, the Put-Call Ratio (PCR) stands at 1.35, indicating relatively positive market positioning. On the Put side, significant open interest at the nearest out-of-the-money strikes was concentrated at 23,400 and 23,500, suggesting strong support around these levels. Fresh open interest addition was also visible at the 23,400 strike.

On the Call side, major open interest addition was observed at the 24,000 strike, indicating immediate resistance for the Nifty 50. Technically, immediate resistance for the Nifty 50 is placed in the 23,758–23,860 zone. A decisive move above this range could strengthen bullish momentum and push the index towards the 20-day moving average near 24,011.

On the downside, immediate support is seen at 23,420, followed by 23,262. Technical indicators remain mixed, with the daily Relative Strength Index (RSI) still below the 50 mark, suggesting momentum has not yet turned fully positive. Traders are also expected to witness heightened volatility due to the weekly expiry on Tuesday.

Several companies are scheduled to announce quarterly earnings on May 19, including Bharat Electronics, Zydus Lifesciences, Bharat Petroleum Corporation, Mankind Pharma, PI Industries, PNC Infratech and Zee Entertainment Enterprises.

For Tuesday’s session, Steel Authority of India and Kaynes Technology India remain under the F&O ban list.

Foreign Institutional Investors (FIIs) remained net buyers on May 18, purchasing equities worth Rs 2,813.69 crore. Domestic Institutional Investors (DIIs), however, sold shares worth Rs 2,682.12 crore during the session.

The Indian stock market ended largely flat with a positive bias on Monday after recovering sharply from Intraday lows. The Sensex gained 77.05 points, or 0.10 per cent, to close at 75,315.04, while the Nifty 50 settled 6.45 points, or 0.03 per cent, higher at 23,649.95.

U.S. markets closed mixed on Monday amid profit booking in technology stocks after a strong rally. The Dow Jones Industrial Average rose 159.95 points, or 0.32 per cent, to settle at 49,686.12. The S&P 500 slipped 5.45 points, or 0.07 per cent, to 7,403.05, while the Nasdaq Composite declined 134.41 points, or 0.51 per cent, to close at 26,090.73.

Among major technology stocks, NVIDIA fell 1.33 per cent, Apple dropped 0.80 per cent and Tesla declined 2.90 per cent. Meanwhile, Microsoft gained 0.38 per cent and Amazon rose 0.27 per cent.

In broader market action, Dominion Energy surged 9.4 per cent, while NextEra Energy lost 4.6 per cent and Regeneron Pharmaceuticals plunged 9.8 per cent. The Philadelphia Semiconductor Index also dropped 4 per cent amid weakness in chip stocks after recent AI-driven gains.

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

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