Benchmark equity indices traded higher in early trade on Thursday (May 21, 2026), with the 30-share BSE Sensex climbing 327.74 points to 75,646.13 and the 50-share NSE Nifty advancing 111.75 points to 23,772.05. According to The Hindu, the rally was supported by easing oil prices and a sharp rally in global markets amid hopes that the West Asia conflict would end soon. The previous session on Wednesday (May 20, 2026) saw the Sensex gain 117.54 points or 0.16 per cent to close at 75,318.39, while the Nifty edged higher by 41 points, or 0.17 per cent to end at 23,659. As per ET Now, the session was characterized by volatile trading with the NSE Nifty 50 also fell below the 23,450 marks in early deals but later pared losses as investors returned to selective buying in heavyweight stocks. The Midcap Index also rose 301 points to settle at 61,323, showing broad-based recovery across market segments.
Nifty Energy emerged as the top sectoral gainer, closing in green for the second consecutive session with advances of over 1.5 per cent. As reported by ET Now, Siemens Energy and GE Vernova T&D led the gains in this sector. The Nifty Auto sector advanced over 0.8 per cent, closing in green for the second consecutive session with Tube Investment India and TVS Motor leading the gains. Nifty Realty also advanced approximately 0.6 per cent for the second consecutive session, mainly led by Brigade and Phoenix Mills. However, Nifty FMCG emerged as the top sectoral loser, declining over 0.7 per cent and closing in red for the third consecutive session, primarily dragged by Emami and United Spirits. According to APAC Media, energy and oil marketing companies witnessed mixed movement as investors assessed the impact of rising crude prices on margins, while metal stocks showed resilience despite concerns over slowing global demand.
The Nifty Bank index snapped its 3-day losing streak, advancing around 150 points and closing above the 53,500 mark. According to ET Now, Federal Bank and BOB led the index in this recovery. The Nifty PSU Bank gained approximately 0.4 per cent, advancing for the second consecutive session with Canara Bank and BOB as the lead gainers. Additionally, Nifty Metal snapped its 3-session losing streak, advancing approximately 0.2 per cent with Hindalco and Welspun Corp leading the gains. As per APAC Media, selective financial stocks aided the broader market recovery, with analysts noting that bargain buying in frontline stocks supported the rebound and prevented a deeper correction. The immediate hurdle continues to be the 50-DMA, placed around 23,730 levels, and a decisive breakout above this mark is required for the next leg of the upward move towards 24,000 levels.
From the 30-Sensex firms, InterGlobe Aviation, Bharat Electronics, Asian Paints, Tata Steel, Larsen & Toubro and Eternal were among the major winners in early trade, as reported by The Hindu. Trent, Infosys, Sun Pharma and Bajaj Finserv were among the laggards. Top performers included Hindalco and Reliance, as reported by ET Now. Hindalco emerged as the top Nifty gainer after rising more than 3%, supported by strong Q4 results from Novelis that improved hopes for future growth. Tata Communications gained over 7 percent after appointing Ganapati S. Lakshminarayanan as its new MD and CEO. Avalon Technologies jumped nearly 8 percent after Nomura initiated coverage with a "Buy" rating. However, PI Industries fell over 7% after weak quarterly earnings, while Zee Entertainment Enterprises declined around 6% after reporting a net loss of ₹104 crore. The Nifty Midcap closed in green for the second consecutive session, advancing over 0.5 per cent, mainly led by gains in Tata Communication and Ge Vernova T&D.
Brent crude, the global oil benchmark, cooled and traded at $105.7 per barrel level, providing significant support to market sentiment. According to The Hindu, Brent crude declining to $106 this morning is a positive signal. Perhaps the market is taking cues from President Trump's remark that 'the conflict will end soon and oil prices would plummet', said V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. In Asian markets, South Korea's benchmark Kospi traded over 7% higher, Japan's Nikkei 225 index and Shanghai's SSE Composite index were trading higher, while Hong Kong's Hang Seng index quoted marginally lower. U.S. markets ended significantly higher on Wednesday (May 20, 2026). Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,597.35 crore on Wednesday (May 20, 2026), according to exchange data. Investor sentiment has improved meaningfully as markets increasingly begin to price in the possibility of de-escalation and a potential diplomatic resolution between the U.S. and Iran, said Ponmudi R., CEO of Enrich Money, an online trading and wealth-tech firm.
