Equities End Lower as Oil Surge and Rupee Weakness Weigh on 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 15, 2026 at 11:41 AM IST

Indian equities ended lower on Friday, with benchmark indices posting weekly losses as rising crude oil prices, persistent foreign outflows and fresh record lows in the rupee continued to pressure investor sentiment. The Nifty50 declined 0.19% or 46.10 points to close at 23,643.50, while the BSE Sensex fell 0.21% or 160.73 points to 75,237.99. For the week, the Nifty and Sensex lost 2.2% and 2.7%, respectively, snapping a two-week winning streak.

Markets remained under pressure after Brent Crude prices surged above $109 per barrel following fresh attacks and shipping disruptions in West Asia, intensifying concerns around global energy supplies. The Indian rupee weakened beyond the 96-per-dollar level during the session, while foreign portfolio outflows in 2026 crossed a record $23.6 billion.

Broader markets also witnessed weakness, with the Nifty MidCap and Nifty SmallCap indices falling 0.45% and 0.61%, respectively. Sectorally, metal, realty and oil & gas stocks were the worst performers, while IT and media stocks managed modest gains amid renewed focus on artificial intelligence-led growth themes.

Among individual stocks, Hindalco Industries, Eternal and UltraTech Cement emerged as the top losers on the Nifty50 index.

Top Movers of the Day

Tata Motors Passenger Vehicles jumped about 5% to ₹356.15 after Q4 results, as stronger margins, cost cuts and upbeat guidance at Jaguar Land Rover eased earlier worries on profitability.

Nazara Technologies surged around 14% to about ₹303 after a large block deal saw nearly 4.9% of equity change hands, with reports of increased stake by a high‑profile investor boosting sentiment.

Sheela Foam rallied over 11% to about ₹608 after strong buying interest pushed the stock to the top of the mid‑cap gainers list, helped by expectations of improving demand and margin tailwinds in the mattress and comfort‑products segment.

Great Eastern Shipping climbed more than 4% to end at ₹1,550 as investors bet on robust freight rates and earnings resilience, keeping shipping names in favour despite broader market weakness.

Adani group stocks, including Adani Enterprises, advanced up to 3% intraday after reports suggested US authorities are close to dropping fraud‑related charges against founder Gautam Adani, easing legal overhang on the conglomerate.

HUDCO plunged about 7% to an intraday low near ₹205 after the company reported a roughly 39% year‑on‑year drop in pre‑tax profit alongside sharply higher expenses, triggering profit‑taking despite prior gains.

Hindustan Aeronautics fell around 5% to the ₹4,377 even as Q4 net profit rose about 5.5% year‑on‑year to roughly ₹42 billion, with brokerages flagging weaker profitability and modest revenue growth of nearly ₹139 billion.

Hindalco dropped just over 3% to end at ₹1,065 and emerge as the top Nifty 50 loser, dragging the metal index lower as worries over global growth, a firmer dollar and weaker base‑metal prices weighed on sentiment.

Shadowfax Technologies surged over 17% to an intraday high of ₹192.81 after reporting better-than-expected Q4FY26 earnings, supported by strong growth in the logistics and delivery business.

Data Patterns plunged around 2.6% to ₹3,906 after the company’s Q4FY26 results disappointed investors, triggering sharp profit booking in defence stocks.

United Spirits gained over 3% to ₹1,315 after announcing its quarterly and full-year FY26 results, with investor sentiment further supported by a dividend announcement for shareholders.

Futures & Options
Nifty May 2026 futures closed at 23,673.40, a premium of 29.90 points over the spot Nifty 50 close of 23,643.50, indicating cautious positioning in the derivatives market amid continued macroeconomic uncertainty.

In the cash market, the Nifty 50 declined 46.10 points or 0.19%, while volatility remained elevated with India VIX rising 0.95% to 18.79 as investors tracked rising oil prices, rupee weakness and foreign outflows.

Among stock futures, Tata Motors, HDFC Bank and Infosys were 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 climbed on Friday as rising inflation concerns, higher global yields and rupee weakness triggered selling pressure in the debt market. The benchmark 10-year 6.48% 2035 bond yield ended at 7.0644%, up from 7.0203% on Thursday.

Bond sentiment weakened after state-run fuel retailers raised petrol and diesel prices by ₹3 per litre amid elevated Brent Crude prices linked to disruptions in the Strait of Hormuz. The move intensified concerns that rising fuel costs could further push up headline inflation, while the Indian rupee also slipped to fresh record lows against the US dollar. Global factors added to the pressure, with US 10-year Treasury yields remaining elevated near 4.536%, encouraging foreign outflows from emerging markets.

However, losses in the bond market were partly capped after reports indicated that the Finance Ministry was considering reducing taxes on foreign bond investors to support capital inflows and stabilise the rupee.

Forex
Indian rupee weakened to another record low on Friday as rising Brent Crude prices intensified concerns over India’s external balances and inflation outlook. The currency touched an all-time low of 96.1350 against the US dollar before ending the session at 95.9650, down 1.5% for the week.

Investor sentiment remained under pressure as oil prices approached $110 per barrel amid the prolonged Iran conflict, worsening concerns around India’s current account deficit and balance of payments.

Crypto
Bitcoin remained resilient on Friday, trading near the $80,000-$82,000 range as institutional buying and strong trading activity continued to support the broader crypto market. Bitcoin was last trading at around $80,380, up 0.63% over the past 24 hours, with daily trading volumes exceeding $40 billion and market capitalisation remaining above $1.6 trillion.

Ethereum traded in the $2,250-$2,300 range, maintaining a market value above $275 billion with daily trading volumes exceeding $15 billion, reflecting continued investor interest despite macroeconomic uncertainty.

Investor sentiment, however, remained cautious amid ongoing tensions in West Asia and developments around Donald Trump’s China visit.

US Stock Futures
US stock futures fell sharply on Friday as rising Treasury yields and inflation concerns linked to the West Asia conflict pressured risk appetite and threatened to halt the recent AI-driven rally in equities. Futures tied to the Nasdaq-100 tumbled 1.56%, while S&P 500 futures declined 1.07%. Futures linked to the Dow Jones Industrial Average were down around 330 points or 0.66%.

The selloff came after another record-setting session for Wall Street benchmarks, as investors reacted to surging US Treasury yields driven by fears that elevated Brent Crude prices and ongoing West Asia tensions could keep inflation higher for longer. Technology and AI-linked stocks remained particularly sensitive to the rise in bond yields.

US Treasury Notes
Yields on US Treasury climbed sharply on Friday as escalating West Asia tensions and surging energy prices reignited fears of persistent inflation and tighter monetary policy. The benchmark 10-year Treasury yield jumped to 4.536%, its highest level since June 2025, while the policy-sensitive 2-year Treasury yield rose to 4.01%.

The spike in yields followed a sharp rise in Brent Crude prices toward $109 per barrel, intensifying concerns around global energy supplies and inflation. Rising yields triggered heavy selling in bond futures, strengthened the US dollar and pressured global equity futures. Markets also increased bets on further Federal Reserve tightening, with traders sharply raising expectations for a potential 25-basis-point rate hike later in 2026 as hopes for near-term policy easing faded.

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