The domestic equity barometers extended losses in early afternoon trade as rupee weakness, sustained foreign fund outflows, elevated crude oil prices, and renewed concerns over the fragile U.S.-Iran ceasefire weighed on investor sentiment. The Nifty continued to trade below the 23,600 level. Oil & gas shares witnessed some bit of value buying at lower levels.

At 12:25 IST, the barometer index, the S&P BSE Sensex tumbled 916.55 points or 1.21% to 75,098.73. The Nifty 50 index declined 249 points or 1.05% to 23,566.85.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index dropped 0.92% and the BSE 250 SmallCap Index fell 0.66%.

The market breadth was strong. On the BSE, 2,666 shares rose and 1,480 shares fell. A total of 220 shares were unchanged.

Economy:

A public sector bank research report for May 2026 projected India's GDP growth at 6.6% for FY27, compared with an estimated 7.5% growth in FY26, while highlighting the economy's resilience amid global uncertainties and regional conflicts.

The report said credit growth is expected to remain strong in the first half of FY27 and domestic consumption will continue supporting economic activity. It noted that robust rabi output has improved near-term food supply prospects but warned that volatile crude oil prices, commodity fluctuations, and possible El Ni'o conditions could increase inflation risks.

The report also called for measures to address balance of payments pressures arising from rupee depreciation and rising crude prices, including calibrated use of Indian diaspora bonds. It further stressed the need for India to accelerate AI-driven productivity, competitiveness, and integration into global value chains through supportive policy measures.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 2.95% to 19.10. The Nifty 26 May 2026 futures were trading at 23,590.50, at a premium of 23.65 points as compared with the spot at 23,566.85.

The Nifty option chain for the 26 May 2026 expiry showed a maximum call OI of 53.6 lakh contracts at the 24,000 strike price. A maximum put OI of 44.4 lakh contracts was seen at the 24,000 strike price.

Buzzing Index:

The Nifty Oil & Gas index advanced 0.67% to 11,410.60 as value buying emerged at lower levels. The index had declined 3.29% in the last three sessions.

Among the components of the Nifty Oil & Gas index, Oil India (up 8.8%), Oil & Natural Gas Corporation (up 5.91%) and Reliance Industries (up 0.09%) advanced.

On the other hand, Aegis Vopak Terminals (down 3.64%), Hindustan Petroleum Corporation (down 3.27%) and Mahanagar Gas (down 2.96%) turned lower.

Stocks in Spotlight:

Aurionpro Solutions has reported 22.2% increase in consolidated net profit to Rs 61.51 crore on a 5.7% rise in revenue to Rs 345.57 crore in Q4 FY26 as compared with Q4 FY25.

Indian Hotels Company (IHCL) reported a 14.84% increase in consolidated net profit to Rs 599.86 crore in Q4 FY26, compared with Rs 522.30 crore in Q4 FY25. Revenue from operations rose 14.02% YoY to Rs 2,765.29 crore in the quarter ended 31 March 2026.

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