Markets staged a dramatic intraday recovery on Monday after nearly losing 400 points from the open, as the Nifty 50 crawled back from an intraday low of 23,317 to close almost flat, even as a collapsing rupee, Brent crude above $100 a barrel, and renewed US-Iran hostilities kept investors on edge through the session.

“Markets witnessed a volatile session on Monday, with benchmark indices ending almost unchanged amid weak global cues and persistent macroeconomic concerns... the Nifty ended largely unchanged at 23,649.95,” said Ajit Mishra, SVP Research at Religare Broking.

The Nifty 50 settled at 23,649.95, up just 6.45 points or 0.03 per cent, while the BSE Sensex gained 77.05 points or 0.10 per cent to close at 75,315.04. The index had opened with a gap-down of 161 points at 23,482 before buyers stepped in aggressively after the first hour of trade, helping it recover more than 330 points from the day’s low.

The day’s most consequential headline came not from equities but from the currency market. The rupee slid to a fresh all-time low near ₹96.40 against the US dollar, weakening for a fifth consecutive session, with strong dollar demand fuelled by elevated crude prices and geopolitical uncertainty.

Brent crude continued to trade above $100 a barrel, with domestic crude futures gaining nearly 2 per cent to move above ₹10,200, adding to India’s import bill and stoking inflation concerns.

Gold, meanwhile, swung sharply during the session — MCX Gold dipped close to ₹1,57,500 before recovering to around ₹1,59,300 as a weaker rupee and safe-haven demand provided support. The India VIX surged 4.47 per cent to close at 19.63, reflecting heightened nervousness.

Geopolitical developments kept investors unsettled throughout the day. Donald Trump’s fresh warning to Iran, reports of a drone attack at a UAE nuclear facility, and an ongoing deadlock over the Strait of Hormuz collectively stoked fears of supply disruption and risk-off sentiment globally. Rising bond yields in the US and Japan also added pressure, with concerns that global capital could gradually rotate from emerging markets toward developed economies.

On the sectoral front, IT was the clear outperformer, with Nifty IT surging 2.43 per cent as a depreciating rupee boosted earnings prospects for dollar-revenue exporters and bargain hunters moved into names that had been beaten down on AI disruption fears. Tech Mahindra and Infosys were the top gainers in the Nifty 50.

Pharma and healthcare also posted modest gains. On the other side, Nifty Media and Nifty PSU Bank led the declines, with Auto, Consumer Durables, and Realty also ending in the red. Tata Steel and Power Grid were among the prominent losers.

In the broader market, the Nifty Midcap 100 managed a marginal decline of 0.15 per cent after rebounding from a swing low zone of around 59,460–59,560, while the Nifty Smallcap 100 underperformed sharply, falling 1.26 per cent. Market breadth remained firmly negative, with 380 of the Nifty 500 stocks ending in the red and declining stocks significantly outnumbering advancers.

On the corporate front, Bharti Airtel crossed HDFC Bank in market capitalisation to become India’s second most valuable listed company. HDFC Bank remained in focus amid reports that its board may seek an extension for interim chairman Keki Mistry.

The government announced it would not raise fertiliser prices significantly, providing relief to the rural economy, while new restrictions on AC compressor imports were introduced to promote domestic manufacturing, a move that could raise near-term costs for appliance makers.

Going forward, technicals suggest the Nifty faces immediate resistance in the 23,700–23,800 zone, with a more formidable wall at 24,000, while support holds in the 23,300–23,500 band. With weekly derivatives expiry approaching and India VIX elevated, options premiums are significantly inflated, adding complexity to hedging strategies.

Until there is credible diplomatic progress on the US-Iran front and crude prices show signs of easing, sentiment is likely to remain cautious. Investors will closely track rupee movement, FII flows, and any developments from the Middle East that could shift the trajectory of energy markets.

Published on May 18, 2026