Markets opened in positive territory on Tuesday morning, with both benchmark indices rising as hopes of a diplomatic resolution to the US-Iran conflict cooled crude oil prices and lifted sentiment. The BSE Sensex, which closed at 78,520.30 on Monday, opened at 78,617.16 and was trading at 78,827.11, up 306.81 points or 0.39 per cent, as of 9.17 am. The NSE Nifty 50 opened at 24,374.55 against its previous close of 24,364.85 and was quoting at 24,445.90, gaining 81.05 points or 0.33 per cent.
The morning rally was underpinned by reports that Iran will send a delegation for a second round of talks with the United States, with fresh negotiations expected in Pakistan this week. Brent crude futures fell to $95.01, down 0.49 per cent, while WTI crude dropped 0.88 per cent to $86.65. On the Multi Commodity Exchange, May crude futures were trading at ₹8,128, down 0.68 per cent from the previous close of ₹8,184.
“…In the near-term the market will continue to be news-driven, oscillating between hope and fear,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. …”Reports of a second round of talks between the US and Iran are keeping hopes of resolution to the conflict alive. Brent crude at $95 and declining spot prices of crude reflect market confidence that the conflict may not last long.”
Among the top gainers on the Nifty 50, Shriram Finance led the pack, rising 1.43 per cent to ₹1,060.05 from its previous close of ₹1,045.15. Adani Ports followed, up 1.24 per cent at ₹1,598.00 against a previous close of ₹1,578.40, with over 12.32 lakh shares traded. ICICI Bank gained 1.06 per cent to ₹1,370.60 from ₹1,356.20, with nearly 9.93 lakh shares changing hands. Bajaj Finance was up 0.94 per cent at ₹926.35 from ₹917.75. Nestle India, whose quarterly results are due today, edged up 0.85 per cent to ₹1,297.30 from a previous close of ₹1,286.40.
On the losing side, SBI Life Insurance was the top laggard, falling 1.84 per cent to ₹1,946.00 from its previous close of ₹1,982.50. Infosys slipped 0.76 per cent to ₹1,302.60 from ₹1,312.60 amid continued pressure on IT stocks. Cipla declined 0.19 per cent to ₹1,227.20, ONGC shed 0.19 per cent to ₹282.80 and TCS fell a marginal 0.14 per cent to ₹2,576.00 from its previous close of ₹2,579.60.
Sectorally, banking and financial stocks provided the primary support, while IT and insurance names faced selling pressure. …”Buying interest was seen in banking, PSU, and power stocks, while some pressure was observed in IT and metals, indicating selective profit booking,” noted Aakash Shah, Technical Research Analyst at Choice Equity Broking.
On the institutional front, foreign institutional investors remained net sellers on Monday, offloading shares worth ₹1,059.93 crore on a provisional basis. Domestic institutional investors, however, continued to absorb the selling pressure, purchasing shares worth ₹2,966.89 crore. India VIX closed at 18.79 on Monday, rising sharply by around 9 per cent, signalling elevated near-term volatility.
Today is also a weekly derivatives expiry day, which is expected to amplify intraday swings. …”With weekly expiry today, derivatives activity is expected to drive heightened volatility and add complexity to price action,” said Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth.
On the macro front, core sector output contracted 0.4 per cent in March, the first decline in five months, dragged down by lower production in coal, crude oil, fertilisers and electricity. This follows a 2.8 per cent expansion in February. For the full financial year FY26, core sector growth stood at 2.6 per cent, down from 4.5 per cent in FY25. Separately, the Reserve Bank of India rolled back certain restrictions on rupee derivative trades introduced earlier in April, easing norms on related-party transactions and back-to-back dealings involving non-resident entities.
On the trade diplomacy front, Commerce Minister Piyush Goyal announced that India plans to set up a dedicated “Korea enclave” with plug-and-play infrastructure, with both countries targeting bilateral trade of $50 billion by 2030. Mexico, meanwhile, confirmed that USMCA review negotiations are set to formally begin the week of May 25.
Technically, the Nifty 50 faces immediate resistance in the 24,450–24,500 band, with a breakout above 24,500 seen as the trigger for a move toward 24,800–25,000. Support is placed at 24,300–24,250. …”Uncertainty looms large,” Vijayakumar cautioned. …”During such periods, the only thing investors can do is to remain calm and exercise utmost discipline in investing.”