Indian stock markets staged a strong recovery, erasing morning losses as the BSE Sensex rose 117.54 points, or 0.16%, to settle at 75,318.39 and the NSE Nifty 50 gained 41 points, or 0.17%, to close at 23,659. According to The Economic Times, both indices demonstrated remarkable resilience, with the GIFT Nifty trading at 23,671, indicating steady sentiment in domestic equities. The sharp reversal came as oil prices cooled down below $110 per barrel and bond yields inched lower after soaring to record high levels. The recovery was supported by selective buying in largecap stocks across autos, financials, and oil & gas sectors. Vinod Nair, Head of Research at Geojit Investments, noted that markets recovered from intraday lows, supported by selective buying in large cap stocks across autos, financials, and oil & gas, with autos and financials gaining on relatively better Q4 earnings.
The positive market sentiment was broad-based, with India VIX declining around 2% to 18.31 in the afternoon, indicating improved investor confidence. Nifty Oil & Gas emerged as the top gainer, rising 1.67% to 11,367.15, followed by Nifty Auto index advancing 0.82% to 25,909.35. Nifty Realty index climbed 0.68% to 767.90 and Nifty PSU Bank index gained 0.50% to 7,976.30, while Nifty Private Bank index rose 0.27% to 26,035.95. However, Nifty Media index declined 1.43% to 1,400.30, Nifty FMCG fell 0.63%, and Nifty IT index dropped 0.46%. The trading session saw around 1,722 stocks advanced on NSE while 1,543 stocks declined and 107 remained unchanged. Vinod Nair from Geojit Investments highlighted that realty stocks witnessed value buying after the recent correction, while recent fuel price hikes supported sentiment for OMCs and refiners.
Despite the stock market recovery, the Indian Rupee declined to a record low, trading at 96.90 against the US dollar during Wednesday's session, before closing at 96.52 (provisional) on Tuesday, May 19, 2026. As reported by News24, the currency came under pressure due to rising crude oil prices, continued foreign fund outflows, and a strong US dollar supported by global risk aversion. Foreign investors have remained bearish on Indian markets this month, remaining net sellers of Indian equities in eight out of 12 sessions so far in May. However, US Vice President JD Vance said that the Iran conflict will not become a 'forever war', providing some geopolitical reassurance to markets. US bond yields stay near multi-year highs, tightening financial conditions and limiting equity upside, while continued Middle East tensions have kept crude prices elevated near USD 110 per barrel. Vinod Nair from Geojit Investments noted that persistent rupee weakness and elevated crude prices continue to weigh on sentiment due to concerns around inflation and margin pressures, while FII flows remain mixed.
In commodities, Brent crude declined USD 1.97, or 1.77%, to USD 109.31 per barrel, while crude oil traded lower by USD 1.77, or 1.70%, at USD 102.38 per barrel. Gold prices remained largely steady, slipping marginally by 0.04% to USD 4,486.68 per ounce. Commenting on the market trend, Vinod Nair, Head of Research, Geojit Investments, said that markets are now awaiting the US Fed's April policy minutes for further direction on the interest rate outlook. He noted that persistent rupee weakness and elevated crude prices continue to weigh on sentiment due to concerns around inflation and margin pressures, while FII flows remain mixed. Overall, the broader trend remains range-bound with a negative bias, with sector and stock-specific opportunities likely to dominate.
According to Univest analyst predictions for Thursday, Nifty is expected to trade in the range of 23,500 support and 23,938 resistance, with the GIFT Nifty at 8:30 AM IST as the first confirmation signal. The DII buying floor of ₹3,801 crore on 19 May is identified as the most important sentiment data point, while FII selling of ₹2,457.49 crore on the same day signals continued volatility in foreign investor flows. Nvidia's fiscal Q1 FY27 earnings tonight are positioned as the key catalyst, with Wall Street expecting approximately 79 billion US Dollars in revenue, up 78% year-on-year, and a roughly 90% probability of a beat. As per Univest analysts, a positive Nvidia earnings surprise would directly trigger follow-through buying in Nifty IT stocks, which already ran 3.23% as a sector on 19 May. Tata Steel enters the watchlist on a contrarian basis after reporting a 147% year-on-year jump in Q4 FY26 net profit and declaring a ₹4 per share dividend, yet the stock declined 3% on results day, creating a potential catch-up opportunity.
