Opening Bell : Markets likely to make cautious start amid mixed global cues
Indian equity markets are likely to make cautious start on Tuesday, amid mixed global cues. However, traders likely to take some support after U.S. President Donald Trump said there was a ‘very good chance’ that Washington and Iran could reach a deal to prevent Tehran from developing a nuclear weapon. Additionally, sentiment may remain upbeat as Foreign Institutional Investors (FIIs) remained net buyers on May 18, 2026, with a net inflow of Rs 2,813.69 crore.
Some of the key factors to be watched:
PM Modi meets Norway King: The report said that Prime Minister Narendra Modi called on King Harald V of Norway and highlighted India’s rapid transformation and the emerging opportunities it offers for Norwegian businesses.
Keeping close watch on supply shock, impact on inflation: RBI Governor Sanjay Malhotra has said that Reserve Bank is keeping a close vigil on whether and when supply shocks get embedded in the general price level, warranting monetary policy action.
RBI discontinues investment fluctuation reserve requirement for banks: The Reserve Bank of India (RBI) has discontinued the requirement for commercial banks to maintain Investment Fluctuation Reserve (IFR), an additional buffer to hedge against depreciation in the value of investments.
India should increase investment in R&D to 2 per cent of GDP: Niti Aayog said that India should significantly enhance its investment in research and development from the current level of 0.64 per cent to at least 2 per cent of GDP in the next four to five years to strengthen the country's R&D ecosystem.
India’s fertiliser subsidy bill for FY27 may rise by Rs 70,000 crore: Aparna S Sharma, Additional Secretary, Department ofFertilisers said that the government's fertiliser subsidy bill for 2026-27 may surge by Rs 70,000 crore to Rs 2.41 lakh crore, driven by rising import costs of urea and other fertilisers amid the ongoing West Asia crisis.
Global front: The US markets ended mostly lower on Monday amid uncertainty surrounding reopening of the Strait of Hormuz. Asian markets are trading mostly in red on Tuesday, tracking weak cues from Wall Street overnight.
Back home, Indian equity benchmarks ended marginally higher on Monday after facing sharp losses in intraday trade, supported by value buying in IT, TECK and Healthcare stocks. However, a weak rupee against the US dollar and rising global crude prices amid escalated tensions in West Asia capped the gains. Finally, the BSE Sensex rose 77.05 points or 0.10% to 75,315.04 and the CNX Nifty was up by 6.45 points or 0.03% to 23,649.95.
Some of the important factors in trade:
India sees 13.78% rise in merchandise exports in April: The commerce ministry in its latest data has showed that India’s merchandise exports rose by 13.78 per cent to $43.56 billion in April 2026 as compared to $38.28 billion in April 2025 despite supply-chain disruptions linked to the crisis in West Asia.
India may negotiate Iran-backed oil corridors as Hormuz recovery looks distant: Moody's Ratings has said that India and other oil importing nations are likely to negotiate bilaterally to secure energy supplies, potentially through coordinated transit corridors, but a return to pre-war traffic volumes is unlikely in 2026.
India's unemployment rate hits six-month high of 5.2% in April: The Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation has showed that India's unemployment rate (UR) among persons of age 15 years and above inched higher to 5.2% in April 2026 from 5.1% in the previous month, reflecting the highest ratio since October of the previous year.
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