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Informist, Tuesday, May 26, 2026

By Arundathi A R

MUMBAI – Benchmark equity indices are likely to move in range Tuesday after ending higher in the previous session as global cues suggest a peace deal between the US and Iran soon. Crude oil prices staying at lower levels of $98 a barrel are also expected to improve market sentiment. Asian markets were mixed in early trade. Foreign investment flows and the rupee's movement will also be closely watched by market participants.

Early on Tuesday, US forces conducted "self-defence" strikes in southern Iran, with the US Central Command saying this was to "protect our troops from threats posed by Iranian forces," CNBC reported. The moves come as US President Donald Trump continued to urge for a peace deal in the region, saying on Monday that the talks were "proceeding nicely", according to the CNBC report.

Iran's stockpile of enriched uranium will be "immediately turned over to the US to be brought home and destroyed," in Iran or "at another acceptable location," CNBC reported quoting Trump as saying in a Truth Social post.

Meanwhile, Trump Monday said he had asked Saudi Arabia, Qatar, Pakistan, Turkey, Egypt, and Jordan to join the Abraham Accords en masse to normalise relations with ‌Israel as he tries to negotiate an agreement to end the war with Iran, Reuters reported. However, the proposal has been rejected by Pakistan, as two issues were "not interlinked and cannot be made so," CNBC reported.

At 0723 IST, the July futures contract of Brent crude oil was over 2% higher at $98.27 a barrel. Crude oil prices have fallen below the $100 per barrel mark since Monday on easing worries around the US-Iran peace deal. Oil prices have fallen 5% in a week, and over 12% in the last seven days.

At 0730 IST, the June futures contract of the GIFT Nifty was 0.4% lower at 24064.50, down 87.50 points. The May futures contract of the GIFT Nifty was down 0.3% at 24055, down 72 points. Both the contracts suggested the Nifty 50 moving in range Tuesday. On Monday, the Nifty 50 settled at 24031.70, up 1.3% or 312.40 points.

"The Nifty index, in the previous trading session, managed to close decisively above the crucial 24000 resistance zone and continued to sustain above the level, indicating strengthening bullish momentum," Sundar Kewat, technical and derivatives analyst at Ashika Institutional Equity Research, said. "Technically, the immediate resistance for the index is placed at 24100. A decisive breakout above this level could trigger fresh buying interest, potentially paving the way for an upside move towards the 24500 mark in the near term," he said. He expects 24000 to act as a key support level, and sustaining above it will remain crucial for maintaining the positive bias.

Analysts expect the Nifty Bank to support the positive momentum in the equity market. "A sustained breakout above the 55400 resistance level could further reinforce bullish sentiment in the banking space, which may lead the index towards the 55900 zone in the short term," Kewat of Ashika said. The Nifty Bank ended over 2% higher Monday.

Foreign institutional investors turned net buyers Monday after a series of sales, while domestic investors continued to support the equity market. Foreign portfolio investors net bought shares worth INR 8.22 billion Monday, while domestic investors net bought shares worth INR 38.57 billion.

ICRA Ltd. expects India's headline CPI inflation to average 5% in 2026–27 (Apr-Mar), on account of recent hikes in retail prices of petrol and diesel, its Chief Economist Aditi Nayar said Monday. Inflation could rise to 5.3% if crude averages $105 a barrel, Nayar said. The estimate assumes a baseline crude oil price of $95 per barrel in FY27, which indicates elevated prices through most of Apr-Sept, then falling to $80 per barrel in Oct-Mar, she said.

South Korea's KOSPI gained the most in early trade, up over 3%. Australia's S&P/ ASX 200 INDEX was the loser in the pack, down 0.5%.  End

US$1 = INR 95.23

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

Edited by Avishek Dutta

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