Indian benchmark indices ended Friday's trading session in positive territory, with the BSE Sensex closing at 75,415.35, gaining 231.99 points or 0.31% and the NSE Nifty 50 settling at 23,719.30, up 64.60 points or 0.27%. According to ET Now, the markets witnessed a gap-up opening and traded in positive territory throughout the session amid optimism over possible diplomatic progress in the Middle East. The Sensex traded in a range of 75,230.75 to 75,810.97, while the Nifty 50 moved between 23,671.00 and 23,835.65. The indices managed to close higher despite trimming some gains in the final hour of trade. From the 30-Sensex firms, Trent, Axis Bank, ICICI Bank, Asian Paints, Hindustan Unilever, HDFC Bank, Kotak Mahindra Bank and Bajaj Finance were among the major winners. Sun Pharma, ITC, Power Grid and Bharat Electronics were among the laggards. Market benchmarks remained capped due to elevated crude oil prices and increasing concerns over inflation which can result in monetary tightening.
The banking sector emerged as the primary driver of Friday's market gains, with Nifty Private Bank, Nifty Metal, and Nifty Bank emerging as the top gainers, advancing up to 1.40%. This sectoral performance provided crucial support to the broader market indices, helping offset some of the pressure from other sectors. The banking sector's strong showing reflects investor confidence in the financial services sector and its ability to deliver consistent returns despite current market challenges. On the Nifty 50, Axis Bank gained 2.56%, ICICI Bank rose 1.73%, and Shriram Finance advanced 2.87% among the top banking performers. From the 30-Sensex firms, HDFC Bank, Kotak Mahindra Bank and Bajaj Finance were among the major winners in the banking space. Among the heavyweight stocks, Shriram Finance, Axis Bank, and ICICI Bank led the gains, while Max Healthcare, Sun Pharma, and ONGC were the primary laggards.
According to ET Now, Nifty continues to exhibit a choppy trend and has once again failed to sustain above the key resistance level of 23,800. The index is still below its 20-day EMA around 23,794, showing that bulls have not yet regained full control. A decisive close above 23,800 could pave the way for a pullback towards the 50-day EMA, currently positioned around 24,006. Technical analysts note that a small bullish candle was formed on the daily chart on Friday beside the negative candle of Thursday, with the short-term chart pattern signaling continued testing of key overhead resistance around 23,850. Immediate support is placed near 23,400, coinciding with an upward sloping trendline connecting recent higher lows. The underlying trend of Nifty remains choppy with positive bias, with any weakness from here could find immediate support around 23,600 levels.
The Indian rupee extended its gains for the second consecutive session, appreciating by 51 paise to close at 95.69 against the US dollar, according to ET Now. This recovery is largely attributed to the Reserve Bank of India's active intervention following its USD/INR buy-sell swap announcement, along with easing geopolitical tensions that have softened imported commodity prices. NSE cash market turnover declined by 7% compared to the previous session. Market breadth remained positive for the fourth straight session, with the BSE advance-decline ratio at 1.12, indicating continued buying interest in mid- and small-cap stocks. The Nifty Midcap 100 index edged up by 0.14% while the Nifty Smallcap 100 declined by 0.15%. Sectoral performance remained mixed, with Nifty Private Bank, Financial Services, and Metal indices outperforming, whereas Healthcare, Media, and IT sectors lagged.
Brent crude, the global oil benchmark, climbed 2.3% to $104.7 per barrel, adding pressure to domestic markets despite positive sentiment. However, hopes of progress in the U.S.-Iran peace negotiations also added to markets' optimism, as reported by The Hindu. In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index ended higher. Markets in Europe were trading in positive territory, while U.S. markets ended higher on Thursday (May 21, 2026). The positive global cues, particularly the AI investment theme globally, supported domestic market sentiment despite elevated oil prices.
