WEEKLY REPORT
The Indian benchmark indices ended lower in the volatile week ended. Oil shock + rupee weakness + FII exodus – all triggered by the Iran war. IT stocks (Infosys, Tech Mahindra) were the only bright spot this week.
For the week, the BSE Sensex down by 1,022.62 points, or 1,022.62%, to close at 75,237.99, while the Nifty 50 fell 331 points, or 1.30%, to settle at 23,643.50.
Major Gainers in the week: Telecom Service over 5%, Commercial Services & Supplies around 2% and Healthcare 1.88%.
Sectoral Laggards: Media in red by 5.81%, Realty by 5.25% and Textiles Apparels & Accessories about 4.21%
Among the broader market indices, both Nifty Mid-cap index and the Nifty Small-cap indices ended negative by 1.77 and 4.13 percent this week.
Foreign Institutional Investors (FIIs) remained net sellers during the week, offloading equities worth Rs 13,583.47 crore. In contrast, Domestic Institutional Investors (DIIs) acted as strong buyers, purchasing equities worth Rs 18,524.53 crore over the same period, helping cushion the market from sharper declines and absorbing a significant portion of the selling pressure. Despite strong domestic participation, persistent FII outflows and cautious derivatives positioning kept overall market sentiment slightly negative, leading benchmark indices to close the week lower.
The Indian rupee weakened during the week, depreciating by ₹1.54 to settle at ₹95.97 against the US dollar on May 16, 2026, compared with ₹94.43 in the previous week.
ECONOMY
ASIA – Two Economies, One Crisis
Asia is splitting into two economic realities. The Iran war’s oil shock is hammering consumers and pushing millions toward poverty, while the AI-driven tech sector keeps posting record profits — a growing divide economists are calling the “K-shaped economy.” China’s inflation hit a three-year high in April, and India hiked gold import duties as its rupee weakened.
EUROPE / US — Tariff Clock & New Fed Boss
Trump gave the EU until July 4 to finalize their trade deal, threatening “much higher” tariffs if they miss the deadline. On the US side, inflation is forecast to hit 3.89% in May — up nearly 150 basis points in just three months — as Powell handed over the Fed chair to hawkish successor Kevin Warsh on May 15.
Trump & Xi in Beijing
Trump wrapped up a two-day summit with Xi in Beijing, touting “fantastic trade deals” including 200 Boeing jets and U.S. oil purchases. But the two sides disagreed on what was actually agreed — Washington claimed trade wins while Beijing’s official statements mentioned none of them. The main takeaway: cautious stabilization, not a breakthrough.
STOCKS IN NEWS
ONGC
ONGC and Oil India shares climbed 6.90%, on this week after brokerage CLSA termed the government’s royalty cuts on crude oil and gas production as a significant positive for the two companies.
Butterfly Gandhimathi Appliances
Shares of leading kitchen appliance makers rallied 14.33 percent this week due to the full financial year FY26, Butterfly Gandhimathi reported a 40.30% jump in net profit to Rs 45.64 crore, while annual revenue rose 9.03% to Rs 943.15 crore.
Vodafone Idea
Shares of Vodafone Idea surged over 12.24% in this week trade after reports suggested the telecom operator may receive fresh round of confidence capital infusion, with Kumar Mangalam Birla expected to lead the fundraising exercise.
Berger Paints India
Berger Paints India rose more than 5 percent on Wednesday after the company reported a rise in consolidated net profit for the March quarter, triggering gains in other paint stocks as well.
Berger Paints India
Berger Paints India rose more than 5 percent on this week after the company reported a rise in consolidated net profit for the March quarter, triggering gains in other paint stocks as well.
Source: Moneycontrol, Euronews, BlackRock, The Japan Times and CNBC
