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Informist, Wednesday, May 20, 2026

 

By Arundathi A R

 

MUMBAI – Analysts see domestic headline stock indices moving in a range on Thursday, with a negative bias. The recent update of a potential US strike on Iran in "two or three days" if a isn't signed between the countries, kept market participants concerned. Escalation in crude oil prices and depreciation of the rupee are also expected to weigh on market sentiment going forward.

 

"Markets are now awaiting the US Fed's April policy minutes for further direction on the interest rate outlook," Vinod Nair, head of research at Geojit Investments, said in a note. The March quarter results of Nifty 50 companies Max Healthcare Institute and ITC are due on Thursday.

 

"Nifty has recently seen a consolidation in a broad range of 23300-23900," Ruchit Jain, head of technical research at Motilal Oswal, said. "This seems to be a time-wise correction as the global factors such as rising bond yields, rising Brent oil and the depreciating INR (rupee) has been weighing on the market sentiments. The directional move in the index is expected only on a breakout on either side of this range and until then, traders should focus on the stock specific moves."

 

On Wednesday, the Nifty 50 settled 0.2% higher at 23659, up 41 points. The BSE Sensex also ended 0.2% higher at 75318.39, up 117.54 points.

 

Bajaj Finserv AMC sees slowing global trade and tighter financial conditions weighing on external demand and liquidity flows across emerging markets. Despite the scenario of heightened volatility from crude oil prices and geopolitical developments, it expects the domestic equity market to show resilience.

 

"We remain underweight on IT services due to potential artificial intelligence-led revenue deflation risks," the AMC said in a note. Emkay Global Financial Services also remained underweight on IT sector due to cyclical weakness, the brokerage said in a media roundtable Tuesday. However, it believes that the market has "over-discounted" the risk of artificial intelligence-led revenue deflation on these companies. 

 

"Large-cap and flexi-cap funds are expected to remain attractive for long-term investors, while small-cap funds are better suited for disciplined SIP (systematic investment plan) investing," Sorbh Gupta, head of equity at Bajaj Finserv AMC, said. "Multi-asset, balanced advantage, and arbitrage strategies continue to offer diversification benefits in volatile conditions," he said.

 

Foreign investment flows should also remain one of the key factors to be watched. On Tuesday, foreign investors net sold shares worth INR 24.57 billion, while shares worthINR 38.02 billion were bought by domestic investors.

 

At 1641 IST, the July futures contract of Brent Crude oil was 2.6% lower at $108.35 a barrel. Escalating crude oil prices and persistent selling by foreign investors drove the Indian rupee to settle at a record closing low on Wednesday as well. The Indian unit settled at 96.8200 a dollar, after falling to a record low of 96.9600 a dollar. It was down 0.3% from its previous close.

 

Due to the impact of higher crude oil prices and an evolving El Nino climate pattern, India Ratings and Research estimates India's GDP growth for FY27 at 6.7%, slower than the 7.6% estimated for FY26. It expects the country's current account deficit to widen sharply on the back of a higher import bill.

 

Max Healthcare is likely to post a nearly 38% on-year rise in its net profit and revenue for the March quarter, driven primarily by volume growth, led by bed additions and a ramp-up of newly commissioned facilities. Its consolidated net profit is seen at INR 4.39 billion and revenue at INR 26.33 billion.

 

ITC's net profit for the March quarter is expected to be flat on year at nearly INR 49 billion. The company's revenue, however, is expected to increase almost 6% on year to nearly INR 183 billion. On a sequential basis, the net profit is likely to decline 8.8% and revenue is expected to increase 1.4%.  End

 

US$1 = INR 96.82

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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