Benchmark equity indices tumbled in early trade on Wednesday (May 20, 2026) due to elevated oil prices, weak global market trends and renewed fears of restart of military operations if Iran failed to reach a peace deal.

The 30-share Bombay Stock Exchange (BSE) Sensex tanked 517.11 points to 74,667.51 in early trade. The 50-share National Stock Exchange (NSE) Nifty dropped 152.45 points to 23,475.80.

From the 30-Sensex firms, Tata Steel, Bharat Electronics, Mahindra & Mahindra, Maruti, Eternal and UltraTech Cement were among the major laggards. Infosys, Tata Consultancy Services, Reliance Industries and Tech Mahindra were the winners.

Brent crude, the global oil benchmark, traded at $110.8 per barrel. In Asian markets, South Korea’s benchmark Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE (Shanghai Stock Exchange) Composite index and Hong Kong’s Hang Seng index quoted lower.

U.S. markets ended lower on Tuesday (May 19, 2026). Broader Asian markets opened under pressure after renewed concerns emerged around the potential escalation in West Asia. Investor sentiment weakened following U.S. President Donald Trump’s statement that he was an hour away from authorising military action against Iran before eventually postponing the decision.

“The development has once again revived fears surrounding geopolitical instability, global energy supply disruptions, and volatility in crude oil markets,” Hariprasad K., Research Analyst and Founder, Livelong Wealth, said.

U.S. President Donald Trump on Tuesday (May 19, 2026) said he was an hour away from deciding to restart attacks on Iran, but put it off after receiving a call from interlocutors, including Qatar and the United Arab Emirates (UAE), on Tehran being “reasonable” in the peace talks.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,457.49 crore on Tuesday (May 19, 2026), according to exchange data.

U.S. Vice-President J.D. Vance has said Iran having an atomic weapon would trigger a “nuclear arms race” worldwide and asserted that the U.S. was “locked and loaded” to restart military operations if Tehran failed to reach a peace deal.

“Sentiment across Indian markets is expected to remain fragile, with rising energy prices, currency weakness and uncertainty surrounding the West Asia conflict continuing to weigh on investor confidence,” Ponmudi R., Chief Executive Officer (CEO) of Enrich Money, an online trading and wealth-tech firm, said.

On Tuesday (May 19, 2026), the Sensex declined 114.19 points, or 0.15%, to settle at 75,200.85. The Nifty dipped 31.95 points, or 0.14%, to end at 23,618.

Benchmark stock indices Sensex and Nifty surged nearly 1% on Monday (December 22, 2025) as investor sentiment remained positive amid foreign fund inflows and a rally in global markets on expectations of further monetary policy easing by the U.S. Federal Reserve.

Building on the previous session’s rally, the 30-share BSE Sensex jumped 638.12 points or 0.75% to settle at 85,567.48. During the day, it surged 671.97 points or 0.79% to 85,601.33.

The 50-share NSE Nifty climbed 206 points or 0.79% to close above the 26,000 mark at 26,172.40.

From the 30-Sensex firms, Trent, Infosys, Bharti Airtel, Tech Mahindra, Bharat Electronics and Maruti were among the biggest gainers.

However, State Bank of India, Kotak Mahindra Bank, Larsen & Toubro and Titan were the laggards.

In Asian markets, South Korea’s Kospi jumped over 2%, while Japan’s Nikkei 225 index climbed nearly 2%. Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index also settled in positive territory.

European markets were trading on a mixed note. U.S. markets ended higher on Friday.

“Indian markets extended their year-end rally, supported by strong liquidity and global cues, as expectations of further Fed easing in 2026 continue to underpin growth. FIIs turned net buyers, reinforcing the positive tone, with IT and metals leading gains,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

Foreign Institutional Investors (FIIs) bought equities worth ₹1,830.89 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs) also bought equities worth ₹5,722.89 crore in the previous trade.

“A stabilising USD-INR exchange rate, coupled with data showing foreign portfolio investors turning net buyers of domestic equities over the past few sessions, triggered broad-based buying and short covering across derivative segments.

“Global risk appetite also remained firm, supported by expectations of further monetary policy easing by the U.S. Federal Reserve, which helped sustain the risk-on momentum across global markets,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Brent crude, the global oil benchmark, climbed 0.86% to USD 60.99 per barrel.

On Friday, the Sensex jumped 447.55 points or 0.53% to settle at 84,929.36. The Nifty climbed 150.85 points or 0.58% to 25,966.40.

Equity benchmark indices Sensex and Nifty declined in early trade on Thursday (September 25, 2025) as relentless foreign fund outflows and U.S. H-1B visa fee concerns made investors jittery.

Also, a weak trend in global peers drove the domestic equity markets lower.

Falling for the fifth day running, the 30-share BSE Sensex declined 141.32 points to 81,574.31 in the opening trade. The 50-share NSE Nifty slipped 22.4 points to 25,034.50.

From the Sensex firms, Tata Motors, Asian Paints, Titan, HCL Tech, Tata Consultancy Services, Maruti and Eternal were among the laggards.

However, Bharat Electronics, Bharti Airtel, ICICI Bank, Larsen & Toubro, Adani Ports and Infosys were among the major gainers.

In the past four days, the BSE benchmark tumbled 1,298.33 points or 1.56%, and the Nifty declined 366.7 points or 1.44%.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,425.75 crore on Wednesday (September 24, 2025), according to exchange data.

“With Trump’s steep tariffs and new $1,00,000 H-1B visa fee weighing on sentiment, Nifty faces strong resistance at 25,300,” Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said.

In Asian markets, South Korea’s Kospi quoted lower while Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng traded in positive territory.

US markets ended lower on Wednesday.

“The significant drag on the market throughout this year has been the sustained selling by FIIs. The reforms being implemented in India, along with the low interest rate regime, have the potential to push economic growth and corporate earnings growth higher. This should bring FIIs back to the Indian market,” VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said.