Indian markets closed marginally higher on May 13, 2026, snapping a four-day losing streak as metals, oil-linked and consumer stocks gained amid sectoral rotation and improved breadth. The Sensex rose 49.7 points to settle at 74,608.98, while the Nifty climbed 33 points to scale 23,413 level. As per HDFC Securities, 2,328 stocks advanced against 1,690 declines, showing positive market breadth with Nifty Midcap 100 index climbing 0.8% and Smallcap 100 index rising 0.3%. The recovery came as mutual fund managers made significant portfolio adjustments in April, reducing holdings in information technology and healthcare sectors while increasing investments in capital goods and non-banking financial companies (NBFCs). This strategic shift reflects fund managers' preference for sectors driven by India's domestic growth and defensive assets amid global volatility and geopolitical tensions.
Metal stocks led the market rally with their index surging more than 3%, as reported by HDFC Securities. Asian Paints took on a shine as the top Nifty gainer, rising 4.5%, while other winners included Adani Enterprises, Bharat Electronics, Tata Steel, Hindalco, and Adani Ports. On the BSE Midcap, SAIL surged over 14% to top the list of gainers, with other winners including Muthoot Finance, Dixon Technologies, HPCL, NMDC, and Biocon. The rally was supported by HPCL surging more than five percent after releasing its earnings and Berger Paints gaining four percent after results. However, IT, auto, and banking stocks capped gains with the IT index declining 1.13% for a second session. Fund managers' increased allocation to Adani Ports and Special Economic Zone and Maruti Suzuki India shows confidence in infrastructure and automotive sectors, while significant selling occurred in Reliance Industries, IT firm Wipro, and auto parts maker Bajaj Auto as managers booked profits and reduced exposure in top performers.
The Indian rupee closed at a new record low of 95.71 against the dollar, as reported by HDFC Securities, as elevated crude oil prices and global cues continued to hammer the home currency. This development adds to the ongoing volatility that has been compounded by rising Brent crude prices and intense foreign fund outflows. The currency weakness has been a key concern for the stock market, with the combination of geopolitical tensions and domestic economic factors creating challenging conditions for investors. India VIX, the volatility index, increased 0.73% to 19.42, signalling caution despite the market recovery. Despite the focus on domestic sectors, risks remain as the IT sector's vulnerability to AI disruption and potential price declines is a major concern, making Wipro's 'Reduce' or 'Sell' ratings significant.
Policy developments also affected stock movements, with Hindustan Zinc rising over four percent after the government increased the import duty on precious metals to 15% from 6%. The day's movement reflected a sectoral rotation theme, with investors shifting focus toward commodity-linked and cyclically sensitive stocks while trimming positions in defensives and recent outperformers. Eicher Motors proved to be the top loser, declining over 2%, while Tata Consumer Products, M&M, Infosys, Bajaj Auto and Tech Mahindra also joined the losers club. The session was characterized by sharp intraday swings, improved market breadth, and strong performance in midcaps. Fund managers' increased investment in ICICI Bank and State Bank of India shows confidence in the banking sector's domestic growth, while Poonawalla Fincorp and ITC Hotels received new investments in the mid and small-cap segments.
