Closing Bell: Nifty recovers 300 points, SENSEX jumps more than1000 points to end in Green

18 May 2026 , 05:10 PM

The Indian benchmark indices staged a remarkable intraday recovery on May 18, 2026, with Nifty closing marginally higher at 23,649 and Sensex gaining 77 points to end at 75,315, after a brutal morning selloff triggered by fresh US-Iran tensions, crude oil surging above $111 per barrel, and the rupee hitting a fresh record low. Markets crashed sharply at the open before value buying and a strong rally in IT and export-oriented stocks, helping indices claw back most of their losses by the closing bell.

Market Overview: Nifty, Sensex, and Bank Nifty Performance

• Nifty 50 closed at 23,649.95 up 6.45 points (0.03%)
• Sensex ended at 75,315.04, up 77.05 points (0.10%)
• Nifty Bank settled at 53,537.00, down 173.35 points (0.32%)

Top Gainers

1. Tech Mahindra Limited – closing at 1,437.00 up by 4.85%

2. Infosys Limited – closing at 1,145.60 up by 2.38%

3. Sun Pharmaceutical Industries Ltd – closing at 1,904.00 up by 1.37%

4. Wipro Limited – closing at 192.49 up by 1.31%

Top Losers

1. NTPC Limited – closing at 384.90 down by 2.62%

2. State Bank of India – closing at 938.80 down by 2.53%

3. Bajaj Auto Limited – closing at 10,188.00 down by 1.83%

Trending stocks

1. Bharti Airtel Limited –

• Closed at ₹1,937.10, up 1.66%

• Shares of Bharti Airtel gained nearly 3% as the company overtook HDFC Bank to become India’s second most valuable company by market capitalisation.
• Market Capitalisation Crossed ₹12 Lakh Crore: Bharti Airtel’s market cap surged close to ₹12 lakh crore, surpassing HDFC Bank amid strong stock performance over recent sessions.
• Strong Revenue Growth Supported Sentiment: Despite a decline in quarterly profit, Airtel reported a 15.6% YoY rise in Q4 FY26 revenue to ₹55,383 crore, reflecting strong business momentum.
• Airtel Africa Stake Deal Improved Outlook: Investors remained positive after the company approved a share-swap deal to increase its stake in Airtel Africa to 78%, strengthening its exposure to high-growth African telecom markets.
• HDFC Bank Weakness Also Helped Airtel Overtake: HDFC Bank shares remained under pressure after the resignation of its part-time chairman and continued weakness in banking stocks, helping Airtel move ahead in market valuation rankings.

2. Power Grid Corporation of India Limited –

• Closed at ₹296.90, down 2.93%

• Shares of Power Grid Corporation of India fell 3% sharply after the company reported weaker-than-expected Q4 FY26 operational performance despite a rise in net profit.
• Revenue Decline Worried Investors: Q4 revenue fell around 5–9% YoY to nearly ₹10,000–11,600 crore, missing market expectations and raising concerns about growth momentum.
• Margin Pressure Weighed on Sentiment: Operating margins contracted sharply to around 78% from 83% last year due to higher operating expenses, impacting overall profitability outlook.
• Stock Hit Over One-Month Low: Investors reacted negatively after the weekend earnings review, leading to heavy selling and sharp decline in the stock despite the company’s stable annual performance.
• Dividend Announcement: The board approved a final dividend of ₹1.25 per share, taking the total FY26 dividend payout to ₹9 per share.

3. Tata Steel Limited –

• Closed at ₹210.01, down 3.15%

• Shares of Tata Steel fell over 3% despite the company reporting improved Q4 FY26 earnings, as investors remained cautious about its European business outlook and margin pressures.
• Strong Q4 Earnings Growth: Net profit increased 9% QoQ to around ₹2,926 crore, while revenue rose 11% sequentially to ₹63,270 crore, supported by better steel realisations and strong domestic demand.
• Europe & Netherlands Concerns Weighed on Sentiment: Investors remained worried about rising regulatory costs, environmental compliance pressure, and weaker profitability visibility in Tata Steel’s Netherlands operations.
• Project Delay Concerns Added Pressure: Delays in key expansion and transition projects, including the UK business transformation and NINL expansion plans, negatively impacted investor confidence.
• Dividend Announcement: The company also declared a final dividend of ₹4 per share for FY26, with June 12, 2026, fixed as the record date for eligible shareholders. Read more 

4. Gland Pharma Limited – 

• Closed at 2,153.00 up 15.24%
• Shares of Gland Pharma rallied sharply and hit a 52-week high after reporting strong Q4 FY26 earnings driven by margin expansion and strong CDMO growth.
• Margins Improved Strongly: EBITDA rose 48% YoY to ₹513 crore, with EBITDA margin expanding to 29% from 24%.
• Cenexi Integration Improved: Management highlighted gradual stabilisation and operational improvements in the Cenexi business.
• Dividend Announcement: The company proposed a final dividend of ₹20 per share, with August 11, 2026, fixed as the record date. Read more on Gland Pharma

Sectoral Indices Performance

Indices	Change
Nifty IT	2.43%
Nifty Pharma	0.52%
Nifty Healthcare	0.22%
Nifty PSU Bank	-1.93%
Nifty Consumer Durables	-1.80%
Nifty Auto	-1.71%
Nifty Metal	-0.98%
Nifty Chemicals	-0.92%
Nifty Oil & Gas	-0.78%
Nifty Energy	-0.75%

 

Sectoral Performance & Key Reasons

Nifty IT (+2.43%)

• IT stocks emerged as the top-performing sector as the Indian rupee weakened to record low levels against the US dollar.
• A weaker rupee benefits export-oriented IT companies because a large portion of their revenues comes from overseas markets in dollar terms.
• Positive sentiment in global technology stocks and expectations of improving US technology spending also supported the sector.
• Investors remained optimistic about long-term opportunities in AI, cloud computing, automation, cybersecurity, and digital transformation services.
• Stocks such as Tech Mahindra, Infosys, Wipro, HCL Technologies, and TCS witnessed broad-based buying interest.

Nifty Pharma (+0.52%)

• Pharma stocks gained due to strong quarterly earnings and defensive buying amid broader market volatility.
• A weaker rupee improved earnings visibility for pharmaceutical exporters as overseas revenues become more valuable after currency conversion.
• Investor sentiment improved after strong business updates and global expansion plans by major pharma companies.
• Defensive demand for healthcare products kept the sector resilient despite rising geopolitical uncertainty and crude oil prices.

Nifty PSU Bank (-1.93%)

• PSU Bank stocks remained under heavy pressure due to concerns around rising crude oil prices, weakening rupee, and higher bond yields.
• Investors worried that macroeconomic stress could increase pressure on banking sector liquidity, funding costs, and asset quality.
• Stocks like State Bank of India and other PSU lenders witnessed sharp declines during the session.

Nifty Consumer Durables (-1.80%)

• Consumer durable stocks declined sharply as investors turned cautious on discretionary spending amid economic uncertainty.
• Rising crude oil prices and rupee weakness increased concerns around higher input costs, imported component expenses, and margin pressure.
• Demand worries also weighed on the sector as consumers may delay purchases of big-ticket items like appliances and electronics during volatile conditions.

Also Read – Why Amber Enterprises crashed 16% today?

Nifty Auto (-1.71%)

• Auto stocks remained under pressure due to concerns over rising fuel prices, inflation, and weakening consumer demand.
• Higher crude oi
• Investors remained cautious on automobile companies amid concerns that rising fuel costs may slow vehicle demand growth.

 

Main Reasons Why Stock Market Fell at Opening but Recovered to Close in Green

1. Rising US-Iran Geopolitical Tensions Hurt Opening Sentiment

Markets opened sharply lower after fresh tensions in West Asia increased global uncertainty. US President Donald Trump warned Iran that “the clock is ticking,” raising fears of further escalation in the Middle East conflict. Concerns over attacks near critical oil routes like the Strait of Hormuz triggered panic selling across global equities.

2. Crude Oil Prices Surged Above $111 Per Barrel

One of the biggest reasons behind the early market crash was the sharp rise in crude oil prices. Brent crude crossed $111 per barrel amid fears of supply disruptions from the Gulf region. Since India imports nearly 85% of its crude oil needs, higher oil prices increased concerns around inflation, fuel prices, and corporate profitability, dragging markets lower during opening trade.

3. Rupee Hit Fresh Record Low Against US Dollar

The Indian rupee weakened further and touched a fresh all-time low near 96.43 against the US dollar. A weaker rupee increases import costs, especially for oil, and raises fears of imported inflation. Continuous currency weakness also impacted investor confidence and added pressure on equities during early trading hours.

4. Rising Global Bond Yields Triggered Risk-Off Sentiment

US 10-year Treasury yields climbed above 4.62%, making fixed-income assets more attractive compared to emerging market equities. Higher bond yields generally reduce foreign investor appetite for riskier assets like Indian stocks, leading to selling pressure at the market open.

5. Weak Global Markets Added to Selling Pressure

Asian and global equity markets traded sharply lower due to geopolitical uncertainty and rising oil prices. Markets across Japan, Hong Kong, China, and Indonesia witnessed significant declines, which negatively impacted sentiment on Dalal Street and triggered broad-based selling in the morning session.

6. Value Buying at Lower Levels Helped Markets Recover

After the sharp morning decline, investors started buying quality large-cap stocks at lower levels. Bargain hunting in banking, pharma, and select heavyweight stocks helped benchmark indices recover most of the losses during the second half of the session.

7. IT & Export-Oriented Stocks Supported Closing Recovery

Export-focused sectors like IT showed resilience as rupee weakness benefits companies earning revenues in US dollars. Stocks such as Infosys and Tech Mahindra recovered during the session, helping improve broader market sentiment. Defensive buying in pharma and selective financial stocks also supported the late recovery, allowing Sensex and Nifty to close in positive territory despite heavy morning volatility.

Summary–

May 18, 2026, reflected a highly volatile trading session where Indian markets witnessed a sharp morning selloff but later recovered to close marginally in the green.

• Markets initially crashed due to escalating US-Iran geopolitical tensions, rising crude oil prices above $111 per barrel, record weakness in the rupee, and rising global bond yields, which triggered heavy risk-off sentiment across global equities.

• IT and export-oriented sectors emerged as the biggest support for the market, as rupee depreciation improved earnings outlook for technology and pharmaceutical exporters. Stocks like Tech Mahindra, Infosys, and Wipro witnessed strong buying interest.

• PSU Banks, Consumer Durables, Auto, and Metal stocks remained under pressure due to fears of inflation, rising fuel costs, weakening consumer demand, and concerns around higher funding and input costs.

• Investors also remained cautious because of weak global market cues, rising crude oil prices, and continued uncertainty around the Middle East conflict and global economic stability.

• However, value buying at lower levels helped benchmark indices recover most of the intraday losses during the second half of the session, supported by resilience in IT, Pharma, and select defensive sectors.

With Nifty 50 closing marginally higher by 6.45 points (+0.03%) and Sensex gaining 77.05 points (+0.10%), the market managed to avoid a deep correction despite severe volatility and broad-based macroeconomic concerns.

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