Last Updated on May 22, 2026 11:11 pm by BIZNAMA NEWS
BY OUR BUSINESS CORRESPONDENT
Indian equity benchmarks logged modest gains on Friday, underpinned by positive global cues, cooling crude oil prices, and a massive, higher-than-expected surplus transfer from the Reserve Bank of India to the Central Government.
The S&P BSE Sensex advanced 231.99 points, or 0.31%, to settle at 75,415.35. The broader Nifty 50 index added 64.60 points, or 0.27%, to close at 23,719.30, having scaled an intraday high of 23,835.65. While private banking and financial heavyweights led the charge, late-session profit booking and lingering foreign institutional investor (FII) outflows capped the day’s gains.
Macro Focus: RBI Extends Fiscal Cushion
In a major macroeconomic development, the RBI Central Board, chaired by Governor Sanjay Malhotra, approved a surplus transfer of ₹2.87 lakh crore to the Central Government for FY26. This marks a 6.6% increase over the ₹2.69 lakh crore dividend remitted in FY25.
Driven by a 26.42% year-on-year surge in gross income, the central bank’s balance sheet expanded by 20.61% to reach ₹91.97 lakh crore as of March 31, 2026. This substantial payout is expected to significantly ease the government’s fiscal deficit trajectory.
Market Dials
- Market Breadth: Positive. On the BSE, 2,168 shares advanced against 2,027 declines, while 174 remained unchanged.
- Broader Markets: The BSE MidCap index ticked up 0.11%, whereas the BSE SmallCap index bucked the trend, shedding 0.26%.
- Crude Oil: Brent crude for July settlement hovered around $104.90 per barrel, easing from recent highs near $110, offering major relief to net-importing economies like India.
- Rupee & Yields: The partially convertible Indian rupee strengthened sharply to 95.6825 per US dollar against its previous close of 96.3650. The yield on the 10-year benchmark federal paper eased 52 basis points to 7.081%.
Global Cues
World markets traded with a positive bias on mixed signals surrounding Washington-Tehran diplomatic channels. While US Secretary of State Marco Rubio noted “good signs” of progress regarding a potential peace pact, reports indicating that Iran’s Supreme Leader refuses to let enriched uranium leave the country kept gains in check.
Elsewhere, Japan’s core inflation cooled to 1.4% in April—its lowest since March 2022—tempering expectations of an imminent interest rate hike by the Bank of Japan. On Wall Street, the Dow Jones Industrial Average had closed at a record high of 50,285.66 overnight.
Corporate Action & Stocks in Spotlight
- Banking & Finance: The Nifty Private Bank index surged 1.49%. Axis Bank (+2.69%), RBL Bank (+2.13%), and ICICI Bank (+1.96%) were among the top sectoral gainers. Life Insurance Corporation of India (LIC) climbed 1.59% on the back of a 23.3% YoY jump in Q4 net profit to ₹23,467.18 crore.
- M&A and Earnings Outperformers: 3M India rallied 3.46% after posting a staggering 201.73% YoY jump in Q4 net profit to ₹215.34 crore, alongside a hefty total dividend announcement of ₹506 per share. Both Laxmi Dental and Ramco Systems locked into their 20% upper circuits following robust Q4 earnings displays.
- Central Bank of India (-7.81%): The stock tumbled to ₹31.27 after the government launched an Offer for Sale (OFS) to divest an 8% stake at a floor price of ₹31 per share. The non-retail portion, however, saw strong institutional appetite, getting subscribed 235.88% on day one.
- Maruti Suzuki India (-0.18%): The auto major traded marginally lower after announcing a price hike of up to ₹30,000 across models, citing persistent input cost inflation.
- Quick Heal Technologies (-7.06%): Shares plunged after the cybersecurity firm reported a widened consolidated net loss of ₹19.94 crore for the final quarter.
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