Market Commentary Pre Session News Details

GIFT Nifty suggests negative start for equities amid fears of further escalation in Middle East conflict

(18-May-26   08:22)

GIFT Nifty:

The GIFT Nifty May 2026 futures currently traded 195.00 points lower, suggesting a deep red opening for the benchmark index today.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 1,329.17 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,958.82 crore in the Indian equity market on 15 May 2026, provisional data showed.

The FIIs have sold shares worth Rs 24,655.82 crore so far in May (till 15 May 2026). This follows their cash sales of Rs 70,135.46 crore in April, Rs 122,540.41 crore in March and Rs 6,640.78 crore in February.

Global Markets:

Asia markets fell Monday as investors weighed renewed geopolitical tensions after U.S. President Donald Trump warned Iran to get moving, FAST,' raising fears of further escalation in the Middle East and potential disruptions to global oil supplies.

In a post on Truth Social, Trump on Sunday said 'the Clock is Ticking' for Iran and warned there 'won't be anything left' if action was not taken soon, adding that 'TIME IS OF THE ESSENCE!' He did not elaborate on the steps he wanted Iran to take or the consequences that could follow.

Oil prices advanced more than 1%. International benchmark Brent crude futures for July gained 1.90% to trade at $111.34 per barrel. U.S. West Texas Intermediate futures for June advanced 2.17% to $107.71 per barrel.

Tensions between Washington and Tehran have remained elevated despite a fragile ceasefire reached in early April. The U.S. has continued its blockade of Iranian ports, while Iran has kept the Strait of Hormuz shut since the conflict began.

Last week on Wall Street, the major indices closed lower on Friday, weighed down by losses in technology stocks and a rise in U.S. Treasury yields after a summit between President Donald Trump and Chinese President Xi Jinping ended without major policy breakthroughs, leaving traders worried.

The S&P 500 shed 1.24% to end at 7,408.50, while the Nasdaq Composite slipped 1.54% to 26,225.14. The Dow Jones Industrial Average was down 537.29 points, or 1.07%, and closed at 49,526.17.

Domestic Market:

The domestic equity benchmarks ended moderately lower on Friday, snapping a two-day winning streak. Investors booked profits at higher levels amid concerns over inflation and uncertainty around the pace of global economic recovery.

Sentiment remained cautious due to the weakening rupee, which slipped past the Rs 96-per-dollar mark. Elevated crude oil prices, inflationary pressures, and persistent geopolitical tensions also weighed on markets.

The Nifty closed below the 23,650 mark, dragged lower by metal and PSU bank stocks. However, IT shares witnessed value buying during the session.

The S&P BSE Sensex declined 160.73 points or 0.21% to 75,237.99. The Nifty 50 index lost 46.10 points or 0.19% to 23,643.50. In the past two sessions, the Sensex advanced 1.13%, while the Nifty 50 gained 1.33%.

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