The stock market started on a positive note on Friday (May 22). Sensex opened with a gain of 120 points. Buying was seen in auto and NBFC shares. On the contrary, today healthcare, pharma and IT sectors appeared under pressure. At 9:28 am, the Sensex was trading at 75,541, up nearly 350 points. Meanwhile, Nifty was trading at 23,747, up 93 points. A tremendous rise was seen in Bank Nifty today; The index was trading at 53,887, up 446 points. However, there were signs of stress in the broader market, with mid-cap and small-cap indices looking subdued. An atmosphere of relief is visible in the global markets in the last trading session of the week. Investors’ confidence has increased due to expectations of a possible agreement between Iran and America. Yesterday, US markets closed at record highs; Today, GIFT Nifty is trading strongly while crude oil prices are witnessing volatility. On the domestic front, several important events are likely to be monitored today, including the announcement of results of big companies, a block deal related to Paytm, ‘Offer for Sale’ (OFS) of the Central Bank of India and a new draft proposal from the RBI.
**Relief for global markets amid Iran-US talks**
Iran has expressed willingness to consider the new proposal put forward by America. Meanwhile, US President Donald Trump has also said that he is ready to wait for a few more days. After these statements, market experts hope that the tension in the Middle East may reduce to some extent. Due to this hope, American markets reached new record highs. The Dow Jones closed at a record high, up nearly 275 points, while the Nasdaq – after a fairly volatile day – closed with modest gains.
**GIFT NIFTY STRONG; Positive signals from Asian markets**
Today, GIFT is trading around Nifty 23,670, up almost 30 points. Dow futures are also trading with a gain of almost 100 points. These signs suggest that the Indian stock market is likely to have a strong start. The mood of investors remains positive in Asian markets also. However, geopolitical tensions have not completely subsided, so market fluctuations are likely to continue.
**Fluctuations in crude oil continue**
Crude oil prices fell nearly 2% yesterday, with Brent crude closing below $103 on hopes of a deal with Iran. However, today there was a slight recovery in the prices and they again moved towards the $105 level. The softening of oil prices is considered good news for oil importing countries like India, as it helps in reducing inflation and pressure on import bills.
**Gold fell, silver rose**
In the commodity market, the movements of gold and silver were opposite to each other. Gold fell by ₹350 to close at around ₹159,700. In contrast, silver rose by nearly ₹1,000 to close at ₹274,900. Base metals also saw mixed trading; On the LME, copper, zinc and nickel fell about 1% each, while aluminum remained strong for the third consecutive day.
**FII selling continues; Domestic funds took charge**
Selling pressure from foreign investors continued for the third consecutive day. FIIs recorded net selling of ₹3,097 crore in cash, index and stock futures segments. However, domestic institutional investors continued their buying. Domestic funds pumped in ₹2,492 crore into the market – marking the fourth consecutive day of inflows – which provided significant support to the market.
**Market mood will get a boost from corporate results**
On the corporate results front, LIC, Nykaa and Max Healthcare performed well. At the same time, the results of Auro Pharma and Prestige Estates were mixed. GAIL’s results proved lackluster on almost all important parameters. Today, the market will be eyeing the announcement of results from some of the key Nifty companies: Hindalco, Sun Pharma and Eicher Motors. Additionally, in the F&O segment, results from Colgate, Info Edge, Torrent Pharma and Fortis Healthcare will also be closely watched.
**Speculation of big block deal in Paytm**
A big block deal worth around ₹964 crore is expected in Paytm today. According to reports, Saif Partners may sell about 1.3% of its stake in the company. The floor price for the block deal has been fixed at around ₹1,121. The impact of this news can be seen on Paytm shares today.
**Central Bank of India’s OFS will open today**
The government is ready to sell up to 8% stake in the Central Bank of India through ‘Offer for Sale’ (OFS). The floor price for this offer has been fixed at ₹31. The issue will open for non-retail investors today, while retail investors will be able to participate in it on Monday.
