Sentiment remained cautious due to the weakening rupee, which slipped past the Rs 96-per-dollar mark. Elevated crude oil prices, inflationary pressures, and persistent geopolitical tensions also weighed on markets.

The Nifty closed below the 23,650 mark, dragged lower by metal and PSU bank stocks. However, IT shares witnessed value buying during the session.

The S&P BSE Sensex declined 160.73 points or 0.21% to 75,237.99. The Nifty 50 index lost 46.10 points or 0.19% to 23,643.50. In the past two sessions, the Sensex advanced 1.13%, while the Nifty 50 gained 1.33%.

Hindalco Industries (down 3.47%), Reliance Industries (down 1.67%) and State Bank of India (down 0.10%) were major index drags today.

The broader market underperformed the frontline indices. The BSE 150 MidCap Index fell 0.48% and the BSE 250 SmallCap Index shed 0.37%.

The market breadth was negative. On the NSE, 1,215 shares rose and 2,027 shares fell. A total of 124 shares were unchanged.

IMD monsoon forecast 2026:

The southwest monsoon is expected to make its onset over Kerala on 26 May 2026, the India Meteorological Department (IMD) said on Friday. The monsoon typically reaches Kerala around 1 June before advancing northwards across the country, marking the beginning of the June-September monsoon season. Last year, the monsoon arrived over Kerala on 24 May. The IMD added that the onset this year could vary by up to four days on either side of the forecast date.

Economy:

India's trade deficit widened to $28.38 billion in April from $20.67 billion in March, as both imports and exports increased sequentially. Merchandise exports stood at $43.56 billion in April compared with $38.92 billion in the previous month, while imports rose to $71.94 billion from $59.59 billion.

However, on a year-on-year basis, merchandise exports grew by over 13% in April, marking one of the strongest monthly performances in the past 10 years, according to the commerce ministry.

Fuel Price Hike:

Petrol and diesel prices were increased across India on Friday with immediate effect as oil marketing companies raised rates by up to Rs 3 per liter due to continued fluctuations in global crude oil prices.

In Mumbai, petrol prices increased by Rs 3.14 to Rs 106.68 per litre, while diesel prices increased by Rs 3.11 to Rs 93.14 per liter.

LNG prices were also raised by Rs 2 per kg. The hike comes amid a sharp rise in wholesale fuel inflation in April, driven by higher prices of crude oil, natural gas, petrol, diesel, and LPG.

Numbers to Track:

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee hovered at 95.8600 compared with its previous close of 95.6400. The rupee hit a fresh record low of 96.14 against the U.S. dollar today.

The yield on India's 10-year benchmark federal paper jumped 0.78% to 7.076 compared with the previous session close of 7.021.

MCX Gold futures for the 5 June 2026 settlement fell 1.79% to Rs 159,154.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.27% to 99.997.

The United States 10-year bond yield gained 1.88% to 4.541.

In the commodities market, Brent crude for July 2026 settlement surged $2.92 or 2.76% to $108.64 a barrel.

Global Markets:

The US Dow Jones index futures were down 271 points, signaling a weak opening for Wall Street on Friday.

European stocks declined as inflation concerns returned to focus after a week of hotter-than-expected US inflation data. Investor sentiment was also weighed down by political uncertainty in the UK, where Prime Minister Keir Starmer is facing a potential leadership challenge.

Starmer is under growing internal pressure after a parliamentary vacancy opened a possible path for Greater Manchester Mayor Andy Burnham, viewed within Labour circles as a left-leaning rival, to enter the House of Commons. However, Burnham could face a tough contest from Reform UK in any by-election.

Asian indices ended lower as investors tracked the second day of high-stakes talks between US President Donald Trump and Chinese President Xi Jinping in Beijing.

Trump arrived in China on Wednesday along with a delegation of American business leaders, including Tesla CEO Elon Musk and Nvidia chief Jensen Huang.

Media reports said Iran emerged as a key topic during the summit, with both sides agreeing that the Strait of Hormuz must remain open. Xi reportedly warned Trump that mishandling the Taiwan issue could lead to 'clashes and even conflicts' between Washington and Beijing and place bilateral ties in jeopardy.

Overnight in the US, stocks ended higher on Thursday, with the Dow Jones Industrial Average reclaiming the 50,000 mark after strong earnings from Cisco Systems and optimism around the US-China meeting.

The Dow rose 370.26 points, or 0.75%, to close at 50,063.46. The S&P 500 gained 0.77% to 7,501.24, while the Nasdaq Composite advanced 0.88% to 26,635.22. Both the S&P 500 and Nasdaq touched fresh record highs during the session.

Shares of Cisco Systems surged 13% after the company reported stronger-than-expected quarterly earnings and guidance. The company also announced plans to cut nearly 4,000 jobs.

Meanwhile, shares of Nvidia climbed more than 4% after reports said the US had cleared around 10 Chinese firms to purchase Nvidia's H200 chips, although deliveries have not yet begun.

On the macroeconomic front, US producer prices rose 1.4% in April, marking the sharpest monthly increase since March 2022, after an upwardly revised 0.7% rise in March. On an annual basis, producer prices increased 6%, the highest level since December 2022.

The data came a day after US consumer inflation accelerated to 3.8% in April, driven by higher energy and housing costs.

Core inflation stood at 2.8%, remaining well above the US Federal Reserve's 2% target and reinforcing expectations that the central bank may keep interest rates elevated for longer amid geopolitical tensions and tariff-related pressures.

Stocks in Spotlight:

Nazara Technologies surged 12.69% to Rs 300.10 on Friday after over 4% of the company's equity changed hands through block deals on the BSE. According to reports, Zerodha co-founder Nikhil Kamath and existing shareholder Axana Estates LLP were likely among the buyers in the transactions. Reports further suggested that Nazara Technologies founder Nitish Mittersain was likely the seller in the block deals.

Hindustan Zinc declined 4.97% as silver prices witnessed a sharp correction amid rising inflation concerns and expectations of higher interest rates in the US. Precious metals weakened after stronger-than-expected US inflation data heightened expectations that interest rates could remain elevated for longer. Hindustan Zinc is among the top 10 silver producers globally.

United Spirits jumped 3.34% after the company's standalone net profit jumped 26.61% to Rs 571 crore on a 3.39% rise in revenue from operations (excluding excise duty) to Rs 3,046 crore in Q4 FY26 over FY25.

Pearl Global Industries surged 9.89% after the company's consolidated profit after tax stood at Rs 81 crore in Q4 FY26, up 24.61% from Rs 65 crore in Q4 FY25. Revenue from operations increased 6.92% YoY to Rs 1,314 crore in Q4 FY26 from Rs 1,229 crore in the corresponding quarter last year.

Sheela Foam surged 11.90% after the company reported a more than six-fold jump in consolidated net profit to Rs 91.28 crore in Q4 FY26, compared with Rs 13.08 crore posted in Q4 FY25. Revenue from operations jumped 23.59% YoY to Rs 1,050.06 crore on account of higher volume growth in both mattress and foam segments.

Apollo Tyres fell 1.75%. The company reported a 241.76% year-on-year surge in consolidated net profit to Rs 630.97 crore in Q4 FY26, compared with Rs 184.62 crore posted in the corresponding quarter last year. Revenue from operations jumped 14.19% YoY to Rs 7,335.67 crore in the quarter ended 31 March 2026.

Kalpataru Projects International rallied 2.55% after the company reported a 92.63% year-on-year (YoY) surge in consolidated net profit to Rs 434.21 crore in Q4 FY26, compared with Rs 225.41 crore in the corresponding quarter last year. Revenue from operations rose 10.06% YoY to Rs 7,777.90 crore in the quarter ended 31 March 2026.

Dilip Buildcon slumped 6.44% after its consolidated net profit tanked 63.67% to Rs 62.05 crore in Q4 FY26, compared with Rs 170.83 crore in Q4 FY25. However, revenue from operations fell 25.71% year on year (YoY) to Rs 2,299.80 crore in Q4 FY26.

Solara Active Pharma Sciences soared 13.66% after the company reported a consolidated net profit to Rs 9.60 crore in Q4 FY26 compared with a net loss of Rs 2.10 crore in Q4 FY25. Revenue from operations jumped 41.86% to Rs 387.29 crore in Q4 FY26.

Indian Hume Pipe Company fell 4.83% after the company's net profit tanked 95.39% to Rs 22.98 crore on a 10.40% decline in revenue from operations to Rs 351.29 crore in Q4 March 2026 over Q4 March 2025.

Allcargo Logistics fell 2.54% after its consolidated net profit tanked 20% to Rs 20 crore in Q4 FY26 compared with Rs 25 crore in Q4 FY25. Total income declined 1.31% year on year (YoY) to Rs 525 crore in the quarter ended 31 March 2026.

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