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According to Motilal Oswal Mutual Fund’s Global Market Snapshot report, Indian equity markets displayed mixed performance in May 2026, with broader market segments continuing to outperform large-cap stocks. The Nifty 50 declined 1.87% over the last one month. The index fell 6.48% over three months, 10.13% over six months, and 4.86% on a one-year basis. The Nifty Next 50 gained 2.05% over the month, while delivering returns of 1.95% over three months, 2.80% over six months, and 6.46% over one year. The Nifty Midcap 150 increased 2.60% over the last one month and posted returns of 3.31% over three months, 0.79% over six months, and 6.84% over one year. The Nifty Smallcap 250 advanced 1.56% over the month, with returns of 7.00% over three months, 1.55% over six months, and 0.94% over one year. The Nifty Microcap 250 rose 2.96% over the last one month and delivered returns of 11.01% over three months, 2.29% over six months, and 0.67% over one year. The Nifty 500 slipped 0.12% over the month, while posting returns of -2.20% over three months, -5.33% over six months, and -0.64% over one year.

Large caps faced mild pressure, with Nifty 50 declining 1.87% in May. Broader markets showed a mixed picture, with Nifty Next 50 and Midcap 150 gaining 2.05% and 2.60% respectively, while Nifty 500 was down by 0.12%. 

Sectorally, Metal and Healthcare led with gains of 4.74% and 3.18%,Consumer Durables and Fast Moving Consumer Goods also saw notable weakness of -6.25% and -3.31% respectively. Defence and Auto sector has also led with gains of 1.49% and 1.62% respectively. Metal sector however has seen a 46.20% gain \ and the IT sector has seen a fall of 22.08% over the past year.

Factor indices reflected a momentum-driven market — Momentum led with a strong 2.52% gain, while Quality managed a modest 0.36% rise. Enhanced Value was down by 0.31% and Low Volatility was the weakest performer at -0.89%.

Nifty 500 was down by 0.12% in May, dragged largely by Financial Services, Energy, and Fast Moving Consumer Goods sectors, even as Commodities, Healthcare, and Industrials stayed positive.

S&P 500 gained 5.15% in May, driven largely by Information Technology which contributed 5.57% to index returns, while Consumer Discretionary and Healthcare added modestly. Emerging markets showed a sharp contrast — Korea and Taiwan surged 35.22% and 16.53%, while China was down by 3.41% and Brazil fell 9.25%. Developed markets were broadly positive; Japan gained 4.93% and Germany 1.65%, while UK edged lower by 0.75% and France saw limited movement. 

Crude oil fell sharply by 16.86% in the month, touching $87/barrel, while Gold dipped 1.42% to $4,547/oz. USD/INR remained nearly flat with a 0.09% move. Crypto markets saw opposite moves — Ethereum held broadly flat at +0.98% while Bitcoin was down by 3.61%, with both remaining lower over the preceding six-month period.

Quick Take

India

CPI inflation edged up to 3.48% from 3.40%, while the repo rate held steady at 5.25% and the 10-year yield eased slightly to 7.00%.

FII outflows stood at ?29,484 crore, with DII flows also turning negative at ?10,308 crore, indicating relatively cautious positioning from domestic investors as well.

US

CPI inflation rose to 3.80% from 3.30%, even as the Fed kept rates unchanged at 3.75%.

US Tax Receipts jumped to $837 Bn from $385 Bn one month prior, while the 10-year yield ticked up to 4.44%.

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