Last Updated on May 22, 2026 12:08 am by BIZNAMA NEWS
By Our Business Correspondent
Indian equity markets ended marginally lower on Thursday amid reports that the Reserve Bank of India (RBI) may step in with additional measures to stabilise the rupee, triggering caution among investors already worried about persistent foreign fund outflows and elevated valuations.
The benchmark indices remained volatile throughout the session as speculation over possible RBI action — including a rate hike, fresh currency swap arrangements and dollar mobilisation from overseas investors — dampened risk appetite. Weak global cues and continued profit-booking in heavyweight sectors further added to the pressure.
The S&P BSE Sensex closed 135.03 points lower at 75,183.36, while the NSE Nifty50 slipped 4.30 points to settle at 23,654.70, falling below the key 23,700 mark during intra-day trade. IT and FMCG counters led the decline, with heavyweights Infosys, Bharti Airtel and Reliance Industries among the top drags on the indices.
Despite weakness in frontline stocks, broader markets displayed resilience. The BSE MidCap index gained 0.18 per cent, while the SmallCap index advanced 0.70 per cent, indicating sustained investor interest in select domestic growth-oriented counters. Market breadth also remained positive, with advancing shares outnumbering decliners on the BSE.
Investor sentiment, however, remained cautious amid uncertainty over currency management and global economic growth. The India VIX, often referred to as the market’s “fear gauge”, declined 3.34 per cent to 17.82, suggesting that volatility expectations eased marginally despite weak market sentiment.
Economic Indicators Mixed
Fresh macroeconomic data painted a mixed picture of the Indian economy. The Index of Eight Core Industries (ICI) rose 1.7 per cent year-on-year in April 2026, supported by higher output in cement, steel and electricity sectors. Cumulative core sector growth for FY26 stood at 2.7 per cent.
Meanwhile, the HSBC Flash India PMI Composite Output Index remained robust at 58.1 in May, signalling continued expansion in private sector activity. However, manufacturing momentum moderated further, with the Manufacturing PMI easing to 54.3 from 54.7 in April — the second-weakest reading in nearly four years. The services sector continued to outperform, with the Services PMI inching up to 58.9.
Currency, Bonds and Commodities
In currency markets, the rupee recovered modestly against the US dollar, trading at 96.2275 compared to the previous close of 96.8600. Bond yields softened slightly, with the benchmark 10-year government security yield easing to 7.074 per cent.
Commodity markets witnessed mild weakness. Gold futures on the MCX declined 0.29 per cent to ₹1,59,538 per 10 grams, while Brent crude futures slipped below $105 a barrel amid hopes of easing geopolitical tensions in West Asia.
Global Markets Weak
Global sentiment remained subdued after weak PMI readings from Europe pointed to slowing economic activity in the UK and France. Asian markets mostly ended lower despite overnight gains on Wall Street, where investors drew comfort from reports suggesting progress in US-Iran negotiations.
Japan emerged as an exception, with the Nikkei surging over 3 per cent following strong export data driven by semiconductor demand.
Earnings-Driven Stock Action
Corporate earnings remained the key stock-specific trigger.
Honeywell Automation India soared nearly 16 per cent after reporting strong quarterly profit growth, while Metro Brands, JSW Cement and Samvardhana Motherson gained on robust earnings performance.
Aurionpro Solutions rose after securing a major fintech contract in the US market, expected to generate over $33 million in revenues over three years.
On the downside, Jubilant FoodWorks tumbled nearly 8 per cent as investors worried about slowing growth in the core Domino’s India business and rising cost pressures. Ola Electric Mobility also declined after reporting a sharp drop in revenue despite narrowing losses.
Market participants are now expected to closely monitor RBI commentary, global bond yields, foreign fund flows and currency movement for further direction in the coming sessions.