India Stocks Outlook
To remain higher; crude prices, US-China talks in focus
This story was originally published at 17:42 IST on 14 May 2026
Register to read our real-time news.Informist, Thursday, May 14, 2026
By Arundathi A R
MUMBAI – Upside momentum is expected to persist in the domestic equity market in the near term, as a report about a cut on tax paid by foreign portfolio investors on Indian bond holdings improved market sentiment Thursday. The news is expected to help the rupee stabilise, and support a positive bias for the equity market, analysts say. Crude oil prices being steady at the $105–$106 a barrel levels is also likely to support indices. The US-China summit will be watched for clarity on a potential peace deal in West Asia.
According to a Bloomberg report, India is considering a significant reduction in taxes paid by foreign investors on Indian bond investments to facilitate foreign inflows and align policies with global norms. The recommendation was made by the Reserve Bank of India to curb the depreciation of the rupee against the dollar, which was seriously considered by the Ministry of Finance, the report said, citing sources.
"The move is a short-term measure from the government's side to attract foreign capital," Geetanjali Kedia, chief analyst at SP Tulsian Investment Advisors, said. Sanjeev Hota, head of equities strategy at Sharekhan, expects short covering in the Nifty 50 derivatives for short term, as a reaction to the tax reduction news. "FII would like to see some kind of transparency and relaxation in terms of these taxes, and this could be one of the triggers for a meaningful comeback for them to the equity market," Hota said.
Foreign institutional investors continued exiting the equity market, by offloading shares worth INR 47.03 billion Wednesday. Domestic investors, however, continued with their buying interest and bought shares of INR 58.69 billion in the previous session. The rupee ended Thursday at a record closing low of 95.7625 a dollar. At 1653 IST, Brent crude oil July futures were slightly lower at $105.43 per barrel.
"Markets in the next three months are likely to remain watchful because of the developments taking place globally, particularly with regard to crude oil, as it is a very important commodity, and also metals," Kuunal Shah, fund manager at Carnelian Asset Management & Advisors, said in a note. With this, he expects the margins of many companies to remain under pressure despite the price hikes that have been undertaken. "India continues to look like a very strong market and is well-positioned to navigate the disruptions currently taking place in global markets. Over a period of three-five years, the market should perform well, and therefore, this could be a good entry point to build a portfolio without focusing on immediate short-term returns," Shah said in the note.
On Thursday, the Nifty 50 closed at 23689.60, up 277 points or 1.2% higher. The BSE Sensex ended at 75398.72, up 789.74 points or 1.1%. "Nifty has a strong resistance around 23800 spot levels," said Vipin Kumar, derivatives and technical analyst at Globe Capital Market. "For any sustainable move, it needs to sustain above 23800 spot levels." However, he sees less chances of sustenance till the time the Nifty 50 remains below 23800 spot levels.
Nifty 50 constituents Power Grid Corp. of India, Tata Steel, and State Bank of India will announce their March quarter earnings Friday. Power Grid is expected to report a net profit of over INR 44 billion for the March quarter, up over 2% on year. Its top line for the quarter is seen at over INR 128 billion, which would mean a growth of 16.63% on year. The statistics ministry will release unemployment data for April on Friday, as per the Periodic Labour Force Survey. End
US$1 = INR 95.7625
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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