Markets opened on a cautious note on Tuesday, May 26, with the Sensex slipping 59 points to 76,429.91 against its previous close of 76,488.96, having opened at 76,224.14. The Nifty 50, which had closed at 24,031.70 on Monday, opened at 24,004.10 and was trading at 24,019.15, down 12.55 points or 0.05 per cent, as of 9.25 a.m. IST. The muted open comes a day after the Sensex surged 1,073 points and the Nifty gained 312 points, or 1.32 per cent, to close decisively above the key 24,000 mark.
The session carries elevated risk as markets face a monthly Nifty F&O expiry today, with the BSE expiry following on Wednesday and exchanges shut on Thursday. Expiry-driven positioning is expected to dominate intraday trade far more than fundamentals.
Fresh US military strikes in Southern Iran clouded the diplomatic mood. Crude oil reversed Monday’s sharp fall, with August Brent futures rising 1.70 per cent to $95.01 per barrel and July WTI climbing 1.35 per cent to $91.53 at 9:16 am on Tuesday. On the Multi Commodity Exchange, June crude oil futures were up 1.51 per cent at ₹8,756, while July futures gained 1.29 per cent to ₹8,535. “Even though negotiations are continuing for an end to the West Asia crisis there are no indications of an imminent end to the conflict,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments. “The ‘self defence strikes’ by the US in Southern Iran has come as a dampener to the ongoing negotiations.”
Monday’s rally had been triggered by optimism over potential progress in US-Iran peace talks, with US President Donald Trump’s comments that discussions were “proceeding nicely” lifting global risk appetite. South Korea’s Kospi surged nearly 3 per cent after resuming trade post-holiday, and Dow futures jumped more than 400 points as falling oil prices lifted sentiment globally. The rupee also rebounded from a historic intraday low of 96.60 against the dollar, with USD/INR stabilising near 95.20.
Vijayakumar added: “Every time a positive development emerges, indicating an end to the conflict and followed by a dip in crude prices, the market has been rallying. A resolution to the conflict and significant dip in crude prices has the potential to largely address the macro headwinds which the economy is facing now.”
Among Nifty 50 gainers in early trade, Coal India led with a gain of 1.55 per cent, trading at ₹465.10 against its previous close of ₹458.00. ONGC rose 0.97 per cent to ₹287.70, Infosys added 0.90 per cent to ₹1,179.00, Hindalco climbed 0.85 per cent to ₹1,109.00, and Tech Mahindra was up 0.74 per cent at ₹1,446.10. On the losing side, healthcare stocks bore the brunt. Max Healthcare fell 1.08 per cent to ₹990.05, Apollo Hospitals dropped 1.00 per cent to ₹8,320.00, and Sun Pharma declined 0.89 per cent to ₹1,824.20. Telecom major Bharti Airtel slipped 0.89 per cent to ₹1,858.10, while IndiGo shed 0.86 per cent to ₹4,463.10.
Sectorally, Monday’s session saw broad-based gains, with the PSU Bank index outperforming with a rise of 3.10 per cent. Bank Nifty closed at 55,293.65 on Monday, up 1,238 points or 2.29 per cent, and faces immediate resistance at 55,400–55,500. On the institutional front, Foreign Institutional Investors turned net buyers on Monday, purchasing equities worth ₹821.80 crore, while Domestic Institutional Investors bought equities worth ₹3,856.90 crore.
Technically, Nifty’s close above the 24,000 mark has put pressure on Call writers at 24,000 and 24,200 strikes, which could trigger short covering in early trade. Immediate support for Nifty is seen at 23,800–23,875, while resistance is placed at 24,200–24,400. “As long as Nifty sustains above 24,000, the index has the potential to advance towards 24,150–24,350 in the near term,” said Rajesh Palviya, Head of Research at Axis Direct.
The European Commission has cut its 2026 Eurozone growth forecast to 0.9 per cent from 1.2 per cent and revised its inflation estimate upward to 3.0 per cent, citing fallout from the Middle East conflict — a broader global headwind that markets continue to watch closely alongside the evolving diplomatic situation.