Equities Rebound as US-China Trade Progress Boosts Sentiment

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

May 14, 2026 at 11:40 AM IST

Indian equities rallied sharply on Thursday, supported by steady corporate earnings and improving sentiment around global trade after signs of progress in US-China discussions. The Nifty50 rose 1.18% or 277 points to close at 23,689.60, while the BSE Sensex gained 1.06% or 789.74 points to settle at 75,398.72. Broader markets were mixed, with the Nifty MidCap index advancing 1.12%, while the Nifty SmallCap index ended largely flat.

Global market sentiment improved after Xi Jinping indicated that trade talks with Donald Trump were making progress. Both leaders also agreed on the importance of keeping the Strait of Hormuz open to ensure uninterrupted global energy supplies, easing some concerns around oil supply disruptions.

Back home, pharma, healthcare and metal stocks led the recovery after Indian markets had declined nearly 4.0% over the previous four sessions amid rising crude oil prices, rupee weakness and concerns over the economic impact of the prolonged West Asia conflict. Adani Enterprises, Cipla and Bharti Airtel emerged as the top gainers on the Nifty50.

Despite the rebound, investor sentiment remained cautious as elevated Brent Crude prices and continued foreign portfolio outflows kept pressure on the Indian rupee, which touched another record low during the session. Sectorally, pharma, healthcare and metal indices outperformed, while IT stocks lagged the broader market.

Top Movers of the Day

BSE jumped 4.5% to a fresh 52-week high of ₹4,060.50, crossing the ₹4,000 mark for the first time amid continued strength in capital market stocks.

HAL fell 0.3% to ₹4,605 primarily due to investor caution ahead of the company's Q4 results and concerns over a potential decline in revenue.

MTAR Technologies surged 12.29% to a record high of ₹7,595 after securing contracts worth ₹22.79 billion.

NLC India rallied as much as 14.6% to an all-time high of ₹373.80 before trimming gains to trade around ₹373.3.

Adani Ports and Special Economic Zone advanced 2.4% to ₹1,781 after announcing plans to pursue specialised offshore and subsea opportunities in Europe.

Cipla rose nearly 8% to around ₹1,435 after reporting record annual revenue for FY26.

LIC Housing Finance dropped nearly 7.0% to an intraday low of ₹546.80 despite reporting around 9.0% YoY growth in Q4FY26 net profit. It later recovered and the share price ended at ₹562.

Eternal, parent company of Zomato, gained 3.18% to around ₹245 despite continued weakness in consumption-linked stocks. The stock had recently been boosted by strong Q4 FY26 results, showing a multi-fold increase in profit

Maruti Suzuki declined 1.6% as rising crude oil prices and macroeconomic concerns continued to weigh on auto sector sentiment.

Futures & Options
Nifty May 2026 futures closed at 23,730, a premium of 40.40 points over the spot Nifty 50 close of 23,689.60, reflecting improved sentiment in the derivatives market after equities rebounded sharply. In the cash market, the Nifty 50 gained 277 points or 1.18%, while market volatility cooled, with India VIX declining 4.18% to 18.61 after recent spikes linked to geopolitical and macroeconomic concerns.

Among stock futures, Kaynes Technology India, HDFC Bank and Bharti Airtel emerged as the most actively traded contracts in the F&O segment. The May 2026 derivatives series will expire on 26 May 2026.

Bonds
India’s government bond yields eased on Thursday as a mild decline in Brent Crude prices below $106 per barrel provided temporary relief to the inflation-sensitive debt market. The benchmark 10-year 6.48% 2035 bond yield ended near 7.0203%, lower than Wednesday’s close of 7.0493%. The decline in yields was supported by intermittent short-covering and cautious buying interest from traders.

Market sentiment also improved after reports suggested that the Finance Ministry and the Reserve Bank of India were considering reducing taxes on foreign investments in Indian bonds to help attract overseas inflows and stabilise the rupee. Despite the pullback in yields, investors remained cautious amid persistent geopolitical tensions and concerns around elevated oil prices.

Forex
Indian rupee weakened to another all-time low on Thursday as elevated Brent Crude prices and continued foreign portfolio outflows kept pressure on India’s external balances. The rupee fell 0.2% to a record intraday low of 95.9575 against the US dollar before recovering slightly to close at 95.7625, marginally weaker than the previous session. Investor sentiment remained fragile as high energy prices continued to worsen concerns around inflation, the current account deficit and capital flows.

The currency pared some losses after reports suggested that India is considering reducing taxes on foreign investors investing in domestic bonds, a move aimed at attracting overseas capital inflows.

Crypto
Crypto markets remained under pressure on Thursday after hotter-than-expected US producer inflation data revived concerns around persistent inflation and a prolonged higher interest rate environment. Bitcoin slipped below the key $80,000 psychological level to trade near $79,600-$79,800, while Ethereum declined around 1.4% to the $2,260-$2,270 range.

Investor sentiment weakened after US Producer Price Index inflation surged to 6.0%, reducing expectations of near-term Federal Reserve rate cuts. Markets also faced pressure from continued institutional ETF outflows, profit-booking after recent gains and persistent geopolitical uncertainty linked to the West Asia conflict and elevated Brent Crude prices.

US Stock Futures
US stock futures moved higher on Thursday as investors welcomed the start of high-level talks between Donald Trump and Xi Jinping, raising hopes for improved US-China relations on trade and technology. Futures tied to the Dow Jones Industrial Average gained 0.4%, while S&P 500 futures edged up 0.2%. Contracts linked to the Nasdaq-100 rose 0.4% after Wall Street touched fresh record highs in the previous session.

Markets are closely tracking the two-day summit, where discussions are expected to cover tariffs, artificial intelligence, technology restrictions and Taiwan-related issues. Improved dialogue between the world’s two largest economies supported risk appetite across global equity markets.

US Treasury Notes
Yields on US Treasury edged marginally lower on Thursday as investors assessed a stronger-than-expected April Producer Price Index report, which rose 1.4% amid higher energy costs linked to elevated Brent Crude prices. The benchmark 10-year Treasury yield eased to 4.459%, while the policy-sensitive 2-year Treasury yield slipped to 3.969%. The 30-year Treasury bond yield also moved slightly lower to 5.026%, although yields remained near recent multi-month highs.

Investors also monitored expectations around incoming Federal Reserve Chair Kevin Warsh and the possibility of further policy tightening later in 2026.

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