Domestic markets are expected to open on a negative note on Tuesday amid mixed global cues, with GIFT Nifty June 2026 futures currently trading 98.50 points lower, suggesting a red opening for the benchmark index today. The market will remain light ahead of the holiday, with the market closed on Thursday due to Barkid-ID. Markets will remain volatile due to F&O monthly settlement in the next two days (NSE: Tuesday and BSE: Wednesday).
Foreign portfolio investors (FPIs) bought shares worth ₹821.75 crore on May 25, 2026, while domestic institutional investors (DIIs) were net buyers to the tune of ₹3,856.88 crore in the Indian equity market, according to provisional data. However, FIIs have sold shares worth ₹31,406.90 crore so far in May (till May 25, 2026). This follows their cash sales of ₹70,135.46 crore in April, ₹122,540.41 crore in March and ₹6,640.78 crore in February. Despite the recent buying interest, foreign participation has not yet turned consistently positive.
Asian markets traded mixed on Tuesday even as investor sentiment remained supported by hopes for a breakthrough in the U.S.-Iran peace talks. President Donald Trump said Monday negotiations with Iran were proceeding nicely, though he warned that the U.S. could resume attacks if the talks failed. In a sign of how tenuous the negotiations were, the U.S. Central Command said it conducted self-defense strikes targeting Iranian missile launch sites and boats attempting to lay mines in the south of the Islamic Republic. U.S. markets were closed on Monday for Memorial Day holiday. Last week, stocks rose on Friday as Treasury yields eased, resulting in a winning week for Wall Street despite heightened volatility.
The S&P BSE Sensex surged 1,073.61 points or 1.42% to 76,488.96 on Monday, while the Nifty 50 index added 312.40 points or 1.32% to 24,031.70. In the past two trading sessions, the Sensex and Nifty increased 1.74% and 0.91%, respectively. The key equity benchmarks surged as plunging crude oil prices and rising hopes of a US-Iran peace deal sparked a powerful risk-on rally across global markets. Robust buying in banking and financial stocks propelled the Nifty decisively above the 24,000 mark, while broad-based momentum lifted all sectoral indices on the BSE into positive territory.
Despite supportive global cues and easing crude oil prices, the broader market structure appears increasingly fragile as traders enter a high-volatility monthly F&O expiry session, said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth. India VIX has cooled recently, but expiry-day volatility can still produce sudden intraday swings and rapid premium erosion in options. In the current environment, disciplined risk management remains more important than aggressive leveraged positioning, especially during the final hours of trade where expiry-driven reversals typically intensify.
