The military adviser to Iran’s supreme leader Mojtaba Khamenei warned of more missile and drone strikes should the United States renew its attacks on Iran.
US President Donald Trump said Iran has agreed it will not obtain a nuclear weapon and claimed that Iran’s supreme leader is involved in negotiations with the United States. Trump also said he could meet Iran’s supreme leader at some point in the future.
Tensions across the Middle East rose sharply after Iran launched missiles toward Kuwait and Bahrain, while the United States carried out fresh strikes on Iran’s Qeshm Island, opening a new front in the already volatile regional conflict.
US Central Command (CENTCOM) said the military action on Qeshm Island was a direct response to attempted Iranian attacks across the Middle East and involved strikes on an Iranian military ground control station.
Kuwaiti civil aviation authorities said the country’s main airport has partially reopened after sustaining damage in an Iranian attack.
CENTCOM stated that Iran fired several ballistic missiles toward regional neighbours, but none successfully reached their intended targets.
Earlier on the same day, the US military said it had disabled an oil tanker traveling toward an Iranian port by striking the vessel with a Hellfire missile.
The IRGC said it launched missiles at a Liberian-flagged vessel identified as the Panaya near the Strait of Hormuz
Rubio has ruled out lifting sanctions on Iran in return for a full reopening of the Strait of Hormuz, saying any sanctions relief would depend on Tehran giving up its stockpile of enriched uranium.
Brent crude oil is trading at approximately $95.95 to $96.15 per barrel.
Trump denied reports that US-Iran talks had stalled, calling them “fake news.”
TheReserve Bank of Indiahas issued a sharp clarification following claims that it had sold gold to ‘save’ forex reserves. The central bank said its physical stock of gold “remained unchanged at 880.52 tonnes as on date” — urging people to rely solely on official information. The fact-check came soon after a Bloomberg report suggested the RBI may have sold gold worth roughly $12 billion in the two weeks through May 22.
“The Reserve Bank of India (RBI) has come across reports in certain sections of the media about RBI’s sale of gold. The RBI emphasizes that these reports are not correct. In this context, it is clarified that the physical stock of gold is disclosed by RBI in its Monthly Bulletin,” the Central bank wrote in a press release.
Controversy had erupted earlier on Wednesday after a Bloomberg report suggested that India “may have offloaded a portion of its gold holdings to shield its foreign-currency assets from the cascading fallout of the war in the Middle East”. The publication cited an analysis by Bloomberg Economics “based on publicly available data” to underscore its assertion — claiming in its headline that “RBI May Have Sold Gold to Save FX Reserves”. The report had also promoted a fact check from the Press Information Bureau.
“This claim is fake. According to RBI, the share of gold in India’s foreign exchange reserves rose from 13.92% at the end of September 2025 to 16.70% on March 31, 2026, and further to 16.85% as of May 22,” the Press Information Bureau fact-checked.
A separate X post from the central bank also confirmed that its physical gold stock has remained constant at 880.52 tonnes for most of 2026. The RBI had purchased a small amount of gold — 0.13 tonnes — in January 2026 after a four-month hiatus.
Gold valuation surges in forex reserves
The Reserve Bank has steadily increased its exposure to gold in forex reserves — with valuation rising more than 64% over the past year to nearly Rs 11 lakh crore. This has been driven by a sharp rise in global gold prices and a decline in the rupee’s value relative to the dollar. Both factors remain heavily tied to the ongoing Iran war and broader geopolitical uncertainties. Weekly data reveals that the total gold valuation had climbed to Rs 10,98,889 crore by May 22.
Gold prices slipped on Wednesday as renewed hostilities in the Middle East pushed crude higher and US-Iran talks stalled yet again. US Secretary of State Marco Rubio said on Tuesday that President Donald Trump’s negotiating team has not offered Iran sanctions relief in exchange for reopening the Strait of Hormuz.
“The market is now looking at the possibility that this ceasefire with Iran may not hold, even though Trump is going to push for a peace deal resolution. If we start to see further escalation, that could also dampen whatever recovery that gold might have had,” Kelvin Wong, a senior market analyst at OANDA, told Reuters.
Iran war ramps up pressure on economy
The RBI bulletin released on May 22 noted that the conflict in West Asia continued to exert pressure on commodity markets, global trade flows and supply chains — contributing to volatility in financial markets. But the missive assured that “robust services exports, positive net FDI flows, foreign exchange reserve buffers and a number of proactive policy measures” were likely to cushion the economy against external headwinds.
The benchmark equity indices Sensex and Nifty fells sharply on Wednesday as uncertainty over a U.S.-Iran peace deal kept investors risk-averse, while higher oil prices and persistent foreign outflows also weighed on sentiment.
At around 9:30 a.m., the Sensex was down 796.56 points or 1.07 percent at 73,853.28, while the broader Nifty declined to 23,268.60, down 214.95 points or 0.92 percent.
Key factors behind market decline
1) US-Iran tensions: Gulf hostilities flared anew, with the U.S. military saying Iranian missile attacks on Bahrain, Kuwait and other regional targets either were thwarted or unsuccessful, as diplomacy between Washington and Tehran showed little progress.2) Rising crude oil prices: The brent crude oil prices surged more than 1 percent to over $97 a barrel.3) Rising Vix: The fear gauge or the volatility index rose nearly 8 percent to 16.57 level, indicating hightened uncertainity.
Technical Outlook
Anand James, Chief Market Strategist at Geojit Investments, said "Lower bollinger band support helped prices swing higher from the opening low yesterday, while the gains were limited to the 23500, on expected lines. If the dips are contained in the 23400-380 region today, a renewed push towards 23700 could be seen. Inability to do so should expose 23126-22800 again."
Benchmark indices Sensex and Nifty are likely to open little changed on Wednesday, with GIFT Nifty indicating a flat-to-negative start. Rising crude oil prices and renew8ed hostilities in the Middle East have offset positive cues from Wall Street and record highs across several Asian markets.
GIFT Nifty was trading at 23,473 in early trade, down 20 points or 0.08 percent from the previous close, signalling a subdued opening for domestic equities. The indication comes after Indian markets ended higher on Tuesday, with the Sensex rising 383 points and the Nifty gaining 101 points as broad-based buying helped benchmarks recover from early weakness
Global cues were mixed. Wall Street ended marginally higher overnight, with the Dow Jones Industrial Average rising 229 points, or 0.45 percent, to 51,307.79. The S&P 500 gained 0.13 percent to 7,609.90, while the Nasdaq Composite edged up 0.03 percent to 27,093.90 as enthusiasm around artificial intelligence continued to support technology shares.
Asian equities also remained resilient. MSCI's Asia-Pacific index rose 0.3 percent to a record high, while Japanese stocks advanced. Several regional benchmarks remained near all-time peaks, extending the AI-driven rally that has propelled global equities higher in recent weeks.However, sentiment remained restrained by renewed geopolitical tensions in the Middle East. Oil prices climbed for a third consecutive session after reports that Iran fired missiles towards Kuwait and Bahrain, prompting retaliatory action by U.S. forces near the Strait of Hormuz. The latest flare-up comes despite tentative progress in U.S.-Iran negotiations, which have yet to result in a formal agreement.Brent crude rose more than 1 percent to around $97 per barrel, while U.S. West Texas Intermediate crude climbed above $94.5 per barrel. The rise in crude prices is likely to remain a key concern for Indian investors given its implications for inflation, corporate margins and the country's import bill.Foreign institutional flows also remain a headwind. FIIs sold equities worth Rs 8,362 crore on June 2, extending their selling streak to five consecutive sessions. Domestic institutional investors continued to absorb much of the pressure, purchasing equities worth Rs 9,589 crore during the session.According to Ponmudi R, CEO of Enrich Money, markets are expected to remain cautious and highly headline-driven as investors await clearer signals from the U.S.-Iran diplomatic process. Elevated crude oil prices and continued foreign fund outflows remain key risks, though strong domestic liquidity is helping cushion the impact of external pressures.On the technical front, Ponmudi said the Nifty has defended the crucial 23,250 support zone and now faces immediate resistance in the 23,500-23,550 range. A sustained move above this zone could trigger a recovery towards 23,750-23,800, while a decisive break below 23,150 could expose the index to the 23,000 mark. For Bank Nifty, the key hurdle remains the 54,000 level, with support placed in the 53,200-53,000 zone.
India’s macroeconomic outlook has weakened following the ongoing West Asia conflict, but Kotak Institutional Equities remains constructive on corporate earnings and the broader market. In a strategy note authored by Sanjeev Prasad and the Kotak Institutional Equities team, the brokerage said Nifty50earnings are likely to grow 18% in FY27 and 14% in FY28 after muted growth of 8% in FY26.
Kotak said stronger profit growth from financials, global commodities, global services, global products and utilities should support earnings despite mounting concerns over crude oil prices. The brokerage warned that higher energy prices could pressure growth, inflation, the fiscal deficit and the current account deficit.
However, Kotak said the eventual economic outcome will largely depend on the duration of the conflict. It will also depend on the availability of oil and natural gas supplies through the Strait of Hormuz.
Kotak says earnings growth remains the biggest support for the market
The brokerage expects Nifty50 net profit growth of 18% in FY27 and 14% in FY28. It expects recovery is supported by the composition of listed-market earnings. Global commodities, global services, global products, and utilities account for a large share of profits. The brokerage also pointed to a favourable base effect in financials after a relatively weak FY26.
Kotak said, “We expect FY27 and FY28 net profits of the Nifty-50 Index to grow 18% and 14% after a muted 8% in FY26.”
The brokerage said stronger earnings from these sectors could help offset pressures emerging from higher energy costs and slowing domestic demand. However, Kotak added that risks remain if disruptions to oil and gas supplies continue for an extended period.
India’s economic outlook now hinges on developments in West Asia
Kotak said the conflict has significantly altered the macroeconomic outlook.
India’s growth trajectory, inflation outlook, fiscal position, and external balances remain closely linked to crude oil and natural gas prices. The developments in the Strait of Hormuz will remain critical. India’s dependence on energy imports routed through the region makes the waterway particularly important.
“India’s macro-economic outlook has deteriorated given higher global oil and gas prices since the start of the West Asia war and 1HFY27/FY27 macro-economic situation will depend on the extent and duration of the ongoing conflict,” said the domestic broker.
The brokerage said its base-case scenario assumes the conflict eases over the coming weeks and energy supplies gradually normalise. Kotak added that a prolonged disruption could result in significantly greater economic pressure.
Oil remains the biggest risk factor
A sharp rise in crude oil prices remains one of the most important risks identified by the brokerage.
Around 42% of India’s crude oil imports during FY26 passed through the Strait of Hormuz. Around 55% of liquefied natural gas imports came through the region. Nearly 88% of liquefied petroleum gas imports also originated from the Middle East. According to the brokerage, any prolonged disruption could have meaningful consequences for the economy.
“High oil prices are negative for India’s CAD/BoP, fiscal deficit, growth and inflation and the impact of crude oil prices is non-linear,” said Kotak.
The brokerage estimates India’s current account deficit at 2.5% of gross domestic product in FY27 under its base-case scenario. This estimate assumes an average crude oil price of $95 per barrel. In a more adverse environment, the current account deficit could widen to 3% of gross domestic product.
Kotak warns inflation could become a bigger challenge in FY27
Inflation risks have increased despite the benign trend seen in FY26. Kotak expects average consumer price inflation to rise to 5% in FY27 from 2.5% in FY26.
The brokerage said higher crude oil prices are one source of risk. Elevated raw material costs, food inflation, and weather-related challenges could also contribute to higher inflation during the year.
Kotak said, “Inflation may surprise negatively.”
The brokerage noted that companies have already begun raising prices to offset higher costs. Kotak added that any increase in retail fuel prices would have a direct impact on inflation. Higher transportation costs could spread inflationary pressures across the economy.
The brokerage also pointed to the India Meteorological Department’s forecast of below-normal monsoon conditions in 2026, which could create additional pressure on food prices.
Valuations remain uneven across sectors
Kotak said market valuations continue to vary significantly despite recent volatility.
The brokerage said consumption stocks remain expensive. Financials trade at attractive-to-fair valuations. Investment-linked sectors continue to command rich valuations. Information technology services and pharmaceutical companies trade at fair-to-expensive levels.
Kotak said, “The Indian market’s valuation is a mixed bag after the helter-skelter price movements in the past few weeks.”
The brokerage also said pockets of excess valuation remain visible within sections of the mid-cap and smal-cap universe. Investor enthusiasm remains elevated in several thematic segments. The brokerage also noted strong enthusiasm among certain public-sector companies.
Just a week afterTaiwan overtook India to become the world’s fifth-largest equity market by capitalisation, South Korea has now leapfrogged India to claim the sixth position, pushing India down to seventh place globally, according to Bloomberg data.
South Korea’s total market capitalisation has surged 88% to $5.04 trillion so far in calendar year 2026, fuelled by a sharp rally in semiconductor majors Samsung Electronics and SK Hynix. In contrast, India’s market capitalisation has declined 8.4% to $4.84 trillion during the period. Taiwan’s market capitalisation has risen 58% to $5.15 trillion.
The slide in India’s ranking comes amid sustained foreign portfolio investors (FPI) selling. FPIs have sold Indian equities worth $27.2 billion (Rs 2.54 lakh crore) in 2026 so far. Since January 2025, cumulative outflows have reached $46 billion (Rs 4.2 lakh crore).
Consequently, cumulative net FPI equity investments in India since 1993 have fallen to Rs 7.3 lakh crore – the lowest level since 2016.
The global artificial intelligence boom has boosted demand for semiconductors, benefiting Taiwan and South Korea, which dominate global chip manufacturing and memory-chip production.
V K Vijayakumar, chief investment strategist at Geojit Investments, said Taiwan and South Korea’s stock market gains have been driven by a high concentration of semiconductor companies.
“TSMC now accounts for nearly 45% of Taiwan’s market capitalisation, while Samsung Electronics and SK Hynix together contribute around 50% of South Korea’s market cap. These are unprecedented and mind-boggling numbers. The AI trade and the dominance of Taiwan and South Korea in semiconductors and memory chips have powered a remarkable market rally over the past year,” he said.
However, Vijayakumar cautioned that the rally may not be sustainable. “There is a growing perception that a bubble is forming in AI-related stocks,” he added.
Reflecting the divergence in market fortunes, South Korea’s benchmark Kospi index has more than doubled, rising 109% so far in 2026, while Taiwan’s Taiex has gained 57.3%. In comparison, India’s Sensex and Nifty have declined 12.4% and 10.1%, respectively.
Analysts attribute the underperformance of Indian equities to a combination of global trade uncertainties stemming from US tariff measures, the US-Israel-Iran conflict, and persistent FPI outflows.
India, a major importer of crude oil, has been particularly vulnerable to the spike in Brent crude prices. The closure of the Strait of Hormuz has disrupted global commodity supply chains, fuelling inflation concerns and raising worries about India’s trade balance.
Arun Kejriwal, founder of Kejriwal Research and Investment Services, said Indian markets have remained under pressure over the past year even as South Korean equities have witnessed a strong rally.
“A significant part of this divergence can be attributed to heavy FPI selling in Indian equities. However, one should not read too much into the change in rankings. What is important is the easing of geopolitical tensions and the resolution of supply disruptions in crude oil and edible oils. Once these issues are addressed, Indian markets can return to a recovery path,” he said.
India’s auto sectorhas quietly become one of the market’s strongest performers again.
The BSE Auto Index has delivered strong gains over the last few years as demand recovered across passenger vehicles, SUVs, tractors and premium motorcycles. Even after periodic slowdowns, the broader industry continues to benefit from rising incomes, easier financing, premiumisation and improving rural demand.
But auto cycles are rarely straightforward.
The industry has already gone through phases of chip shortages, weak urban demand, rising discounts and commodity inflation over the last few years. Several companies managed to grow despite this. Others lost market share because product pipelines weakened or execution slipped.
That is what makes this phase interesting.
A fresh investment cycle is now underway across the sector. Companies are expanding SUV portfolios, ramping up EV investments, increasing manufacturing capacity and positioning India as a larger export hub. At the same time, structural drivers remain favourable. India sold a record 4.3 million (m) passenger vehicles in FY25, while SUVs continue gaining share across the market.
The better opportunities are usually found in companies where growth visibility is improving faster than valuations.
In this article, we look at auto sector companies with strong balance sheets, visible growth plans and management teams that are investing aggressively for the next phase of growth.
Hyundai Motor India remains one of the strongest passenger vehicle franchises in the country. The company built its dominance on a simple formula: reliable cars, strong SUVs and enough launches to stay relevant without constantly chasing market share at any cost. But over the last few years, competition in SUVs has intensified sharply, while Hyundai’s domestic market share has steadily narrowed
That is what makes the next phase interesting.
Hyundai is entering a fresh product and capacity cycle at a time when the broader passenger vehicle industry is slowing. It plans to launch two new models in FY27. Simultaneously, it is expanding production capacity, with total installed capacity expected to rise to around 1.14 m units (6% CAGR over FY25-31) vs 1.08 earlier.
Hyundai Motor India Share Price – 6 Months
Source: NSE
FY26 itself was not particularly strong. Revenue grew just 2.3%, while EBITDA margins declined due to higher commodity costs, labour code impact, new plant overheads and a one-time vendor compensation hit. Domestic passenger vehicle volumes also declined.
The March 2026 quarter, however, showed early signs of recovery. Q4FY26 revenue rose 5.4% YoY, driven by 8.7% growth in volumes, while domestic market share improved sequentially
Going forward, Hyundai expects both domestic and export PV volumes to grow 8-10% in FY27. The company is also positioning India as a larger export hub for emerging markets while increasing SUV penetration and EV localisation.
Management expects EBITDA margins to remain within the 11-14% range as commodity pressures stabilise, utilization at the Pune facility improves and operating leverage starts kicking in.
The stock currently trades at 26.7x earnings, below its five-year average PE of around 31x.
Eicher Motors has managed to turn a motorcycle brand into a lifestyle franchise without diluting its pricing power. Royal Enfield still dominates the mid-size motorcycle segment with nearly 87% market share. Now, the company is trying to ensure growth does not remain dependent on just one category or geography.
What stands out is that demand remains surprisingly resilient despite premium motorcycles becoming significantly more expensive over the years.
Domestic motorcycle volumes grew 14% YoY in Q4FY26, supported by healthy bookings and dealer inventory of less than seven days. Management also expects premiumisation, new launches and stronger market activation to continue supporting demand.
Eicher Motors Share Price – 6 Months
Source: NSE
The company’s FY26 sales grew 24%, while EBITDA margins remained stable at 24.7%, as higher commodity costs weighed on profitability. Management, however, indicated that commodity inflation could create a 3-3.5% impact on revenue in Q1FY27, which it plans to offset through price hikes, value engineering and operating leverage.
Looking ahead, Eicher Motors plans to expand annual production capacity to 2 million units from 1.6 million units through a brownfield expansion over FY28, with planned investments of around Rs 9.6 bn. The company is also entering electric mobility through Flying Flea and continues to expand its international presence across Latin America and Asia.
The stock currently trades at 36.6x earnings, slightly above its five-year median PE of 34.7x.
Mahindra & Mahindra is no longer just an SUV company that also sells tractors. It is slowly turning into a full-spectrum mobility play.
What makes the story more interesting is the timing. At a point when parts of the auto industry are still debating whether demand can sustain after a strong run, Mahindra is expanding capacity, accelerating launches and preparing for the next cycle of growth.
The company’s FY26 standalone sales grew 25%, helped by strong SUV demand and a sharp rise in tractor volumes. EBITDA margins remained stable at 19%. Meanwhile, Q4FY26 sales rose 29%, while EBITDA margins stood at 18%. The auto business continued to report healthy PBIT margins. Management also indicated that commodity pressures, especially steel prices, are likely to remain elevated in the near term.
Mahindra & Mahindra Share Price – 6 Months
Source: NSE
In the future, Mahindra plans to launch ICE SUVs, EVs and LCVs by 2031. Capacity expansion is also underway. The Chakan facility alone is expected to add 10,000 units per month of ICE capacity and another 4,000 EV units by FY28. Strong cash generation from the core businesses is giving the company room to keep investing aggressively.
The stock currently trades at 22x earnings, below its five-year median PE of 26.5x.
TVS Motor Company is slowly turning itself into a premium mobility play with a growing presence across higher-end bikes, electric vehicles, exports and global brands.
What TVS seems to have figured out earlier than many rivals is that the Indian two-wheeler buyer is changing. Customers are increasingly willing to pay for styling, performance, features and electric mobility.
That shift is visible in the numbers. Scooters, including EVs, now contribute nearly 38% of sales and management expects this to cross 40%, driven by Jupiter, Ntorq and iQube. Premium motorcycles like Apache and Ronin continue to see healthy demand, even as the economy bike segment remains weak.
TVS Motor Company Share Price – 6 Months
Source: NSE
FY26 revenue grew 30.4%, aided by 24% volume growth and strong momentum in exports, scooters and EVs. EBITDA margins improved to 14% due to better product mix, operating leverage and premiumisation. In Q4FY26, revenue rose 27% with margins at 15%. Management, however, flagged inflation in steel, aluminium, gas and crude-linked inputs as a near-term risk to margins.
TVS plans to add around 1.5 m units of annual capacity over the next year, taking total capacity to nearly 8.3 m units. EV capacity has already increased to about 40,000 units per month and is expected to rise to 50,000 units. The company also invested around Rs 24 bn during FY26 towards Norton Motorcycles, TVS Credit, overseas operations and future growth initiatives.
The stock trades at 54x earnings, in line with its five-year median valuation.
Ashok Leyland is entering the next CV cycle from a much stronger position than in the past. The company has reduced its dependence on trucks by building businesses across buses, LCVs, exports, aftermarket, defence and power solutions. A more diversified mix makes earnings less volatile during downturns.
The replacement cycle is also finally kicking in. Management said the average fleet age in India has risen to nearly 10-10.5 years from 7-7.5 years earlier, creating a large replacement opportunity. GST rate rationalisation improved freight demand and brought both retail and bulk fleet operators back into the market.
Ashok LeylandShare Price – 6 Months
Source: NSE
The momentum is already visible in the numbers. In 9MFY26, Ashok Leyland’s domestic MHCV volumes grew 9.8% YoY, ahead of industry growth, helping the company gain market share.
Domestic LCV market share improved to 12.7%, while exports rose 30% during the period. In Q3FY26, revenue grew 24% YoY and EBITDA margin stood at 19%, despite temporary pressure from commodity costs and an unfavourable product mix. Defence revenues rose 84% YoY, while power solutions revenues grew 45%.
In the future, the company is preparing aggressively for the next phase of growth. Ashok Leyland recently inaugurated its new EV manufacturing facility in Lucknow and is ramping up electric trucks and buses through Switch Mobility and OHM. It is also expanding distribution and service reach, adding 152 new touchpoints during 9MFY26, while strengthening presence in North and West India, where it historically lagged peers.
The stock currently trades at 26.6x earnings, slightly below its five-year median PE of 27.5x.
Conclusion
Even the best bull markets create bad habits.
Cheap stocks start looking automatically attractive, while investors often ignore the difference between a genuine value opportunity and a value trap. In reality, low valuations alone rarely create long-term wealth. Strong management execution, healthy balance sheets and clear growth visibility matter far more.
The companies in this list operate across different sectors, but each is entering a fresh phase of expansion while still trading at relatively reasonable valuations compared to broader market favourites.
Of course, no stock is completely risk-free. Investors should focus on business quality, management discipline and long-term growth potential rather than get carried away by narratives or short-term price moves alone.
Happy investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
Prism opted for the confidential pre-filing route, which allows the company to engage with the Securities and Exchange Board of India (SEBI) for initial feedback on its draft document without it being publicly disclosed.
Next step for Prism
The IPO filing followed shareholders’ approval at an Extraordinary General Meeting (EGM) held on December 20, 2025, where the company received consent to raise up to Rs 6,650 crore through a fresh issue of equity shares.
As the next step, the company is expected to file a public Updated Draft Red Herring Prospectus in early July, which will be open for public comments for 21 days, the report said. It added that Prism is currently evaluating market conditions and broader listing timelines as it prepares to file its UDRHP-1.
OYO’s expansion plans
The development comes as Prism continues to strengthen its presence across its key markets —India, the US, and Europe—and to increase its focus on self-operated hotels and the growth of premium brands such as Sunday Hotels & Pallette Hotels. Also, it recently entered the vacation homes segment in India with its European brand, DanCenter, by opening villas for rent in Goa.
In India, Prism has also increased its presence in religious destinations to capitalize on the growth in spiritual travel. The company has appointed Axis Capital, Citibank, Goldman Sachs, ICICI Securities, SBI Caps, JM Financials, InCred Capital, and Intensive Fiscal Services as the book-running lead managers for the IPO.
Previous IPO plans
OYO was founded by Ritesh Agarwal in 2012, who is the CEO of Prism Group. SoftBank remains one of its largest shareholders.
The company had previously attempted to go public. The hotel aggregator first filed for an IPO in 2021 to raise Rs 8,430 crore, submitting offer documents to SEBI targeting a $12 billion valuation. This was followed by a 2023 filing that incorporated updated financial and operational disclosures.
However, the company later withdrew its IPO plans amid heightened global market volatility, which weighed on investor sentiment.
Recently, Prism appointed former SEBI Chairman Ajay Tyagi as an independent director on its board. His extensive experience in capital markets, corporate governance, and regulatory affairs is expected to strengthen Prism’s board as the company moves toward its IPO.
The International Energy Agency (IEA) has warned that the global economy could face heightened risks if the Strait of Hormuz is not fully reopened in the coming weeks, as the buffers that have so far cushioned the impact of the Iran conflict begin to run out.
Speaking to CNBC-TV18's Shereen Bhan, IEA Executive Director Fatih Birol said the agency is closely monitoring developments but does not currently see the need for another emergency release from strategic oil reserves after its record 400-million-barrel stock release helped ease market pressures.
Birol cautioned that crude oil prices remain significantly above pre-conflict levels and continue to create challenges for oil-importing countries through higher energy costs and inflation.“We are facing a major problem in the energy markets, and as I said almost two months ago, this is the largest energy crisis in history. We had three major energy crisis in the last half a century; 1973 a major oil crisis, 1979 another major oil crisis, and 2022 after Russia Ukraine war, and natural gas and oil crisis, especially in Europe.The amount of oil and gas the world has lost combined in these three major crisis is less than oil and gas we lost in this very crisis of Iran war. We lost huge amount of oil, huge amount of natural gas, and this would have major implications for the global economy, especially in Asia, and within Asia developing economies.”Birol said the oil market had initially been supported by surplus supply and inventories, but those cushions are gradually being depleted.“My biggest worry is the following: When we enter this crisis, we hit buffers. IEA has said that before February 28, there was a lot of surplus pushing the oil prices down and after the crisis started we have been using this surplus plus the inventories, the stocks that the governments and companies have, and all this gas oil we have already is now diminishing.The inventories, the stocks, the money in the pocket is diminishing, and not new money is coming in. We are coming at the bottom of those, and as I said, if we are not able to see a fully and unconditional opening of Strait of Hormuz by end of June, July, and August, the travel season around the world in many countries are starting the flights and the cars and the buses, we may be entering the ‘red zone' for the global economy, especially those in Asia,” he told CNBC-TV18's Shereen Bhan
Indian equity markets staged a recovery in the afternoon trade today, reversing early losses to finish the session in positive territory.
After opening in the red, benchmark indices gradually gathered momentum through the day, helped largely by a strong rally in technology stocks.
The Sensex ended the session at 74,649.84, gaining 382.50 points or 0.52%, while the Nifty settled at 23,483.55, up 100.95 points or 0.43%. The Nifty Bank index also finished in positive territory at 53,714.65, rising 0.13%.
Vinod Nair, Head of Research, Geojit Investments said, “Markets recovered from initial losses, led by gains in the IT sector, while continued accumulation in large-cap stocks reflected comfort with valuations, as the Nifty 50 trades closer to its long-term averages than the relatively richer valuations in broader markets. Despite ongoing delays in a Middle East truce, global sentiment remained stable, highlighting resilience in risk appetite. With the earnings season largely concluded, investor focus has shifted to key macro factors including monsoon progress, inflation trends, RBI policy, and liquidity conditions.”
“The monsoon is expected to advance into southern regions this week, providing near-term sentiment support. While rainfall is projected to be below the long-period average and emerging El Nino risks warrant monitoring, healthy reservoir levels, well above the 10-year average, offer a cushion against potential shortfalls,” he added.
Let’s take a look at the big highlights of today’s trade –
IT stocks take centre stage
The biggest support for the market came from information technology stocks. The Nifty IT index jumped more than 4%, extending its winning streak to a third consecutive session and emerging as one of the strongest-performing sectoral indices of the day.
Large-cap technology companies led the rally. TCS emerged as the top performer among Nifty constituents, while Infosys and HCL Technologies also recorded strong gains.
Mid-tier IT companies such as Coforge, LTIMindtree and Mphasis also saw gains during the session. Tech Mahindra, Wipro and Oracle Financial Services Software added to the sector’s positive momentum.
52-week highs and 52-week lows
Data from the exchanges showed that 73 stocks touched their 52-week highs during the session, while 83 stocks slipped to fresh 52-week lows.
Among the notable stocks reaching new 52-week high was ACME Solar Holdings, which continued its upward momentum.
The list of stocks making fresh highs also included several smaller and mid-sized counters, indicating stock-specific buying activity.
At the same time, a number of companies remained under pressure. Bajaj Electricals, Central Bank of India, Havells India and ICICI Prudential Life Insurance Company were among the stocks that touched fresh 52-week lows.
Circuit filter data
Trading activity across the broader market remained highly selective. During the session, 118 stocks hit their upper circuit limits, while 122 stocks were locked in lower circuits.
Within the Sensex pack, technology stocks dominated the gainers’ list. TCS emerged as the biggest gainer of the day, followed by Infosys and HCL Technologies. Tech Mahindra also featured among the major gainers, while Adani Ports added to the positive sentiment.
On the other hand, NTPC ended as the biggest laggard among Nifty stocks. Axis Bank, Power Grid Corporation and Bajaj Finserv also remained under pressure during the session. ICICI Bank featured among the notable losers, limiting some of the gains generated by the technology sector.
Analyst outlook
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities said, “On Tuesday, the benchmark index Nifty opened with a downside gap, testing the prior swing low support. The opening price also turned out to be the day’s low. The index subsequently witnessed a steady pullback and closed at the 23483 level, registering a gain of 0.43%. This price action led to the formation of a bullish candle on the daily chart, indicating buying interest at lower levels.”
He further noted, “From a technical standpoint, the daily RSI once again held above the crucial 40 level and rebounded, reinforcing the RSI range shift behaviour in a sideways market. Notably, this marks the second instance of the RSI finding support around this zone and bouncing back. Going ahead, the sustainability of this move will depend on a decisive follow-through on the upside.”
TheReserve Bank of India's bi-monthly Monetary Policy Committee (MPC) meeting will begin on June 3. The three-day meeting will conclude on June 5, with RBI Governor Sanjay Malhotra announcing the key policy decisions. Analysts expect the RBI to pause rather than a hike despite risinginflation risks from higher fuel prices, a depreciation rupee and elevated global energy costs. Here’s why.
RBI unlikely to hike rates to defend the rupee
Nomura expects the RBI to opt for a hawkish pause, arguing that interest rates are not an effective tool to defend the currency; also their primary mandate is to control inflation and support economic growth, rather than target a specific exchange rate.
“Despite pressure to raise policy rates to defend FX and/or pre-emptively ward off inflation risks, we expect the RBI’s MPC to vote unanimously to keep the repo rate on hold at 5.25% on June 5,” Nomura said.
Inflation is not yet a problem: Nomura
The brokerage noted that inflation risks are increasing, but not to an extent that would warrant an immediate rate hike.
Wholesale inflation (WPI) surged to 8.3% in April. However, core inflation remains subdued, indicating that companies have not fully passed on higher input costs to consumers. Fuel price hikes in petrol, diesel and CNG are also expected to add around 0.5 percentage points to headline inflation. The economy is also bracing for El Nino.
Given these factors, Nomura believes “the MPC can be patient”, and assesses how inflationary pressures evolve before taking any action.
The brokerage expects the RBI to raise its FY27 inflation forecast to 4.9% from 4.6%. At the same time, it sees the central bank lowering its FY27 GDP growth projection to 6.8% from 6.9% due to the impact of higher energy costs on economic activity.
Nomura also said there is a possibility that the RBI shifts its liquidity stance from “adequate” to a more “neutral” position as price pressures build up.
RBI to maintain long pause: HSBC MF
HSBC MF also expects the RBI to maintain a prolonged pause in policy rates despite rising external risks.
“The RBI MPC is likely to maintain a long pause in policy rates while keeping the liquidity conditions in sufficient surplus,” HSBC said.
However, it warned that the risk of rate hikes in 2027 could increase if elevated oil prices persist and weather-related risks (EL Nino) begin to feed into inflation. Crude oil prices, shipping costs and freight rates have surged since the Iran-US war escalated in February. Brent crude is currently hovering around $94.03 but it briefly touched $126 per barrel.HSBC highlighted that most major central banks chose to remain cautious amid the uncertainty. The US Federal Reserve, the Bank of England and the European Central Bank maintained a hawkish tone in their policy comments while refraining from major policy shifts.
The RBI also adopted a cautious approach in its April monetary policy review. HSBC MF said it viewed the central bank’s decision as a “neutral hold”, with policymakers closely monitoring incoming data before taking further action.
Sensex and Nifty are likely to open sharply lower on Tuesday, tracking losses on the GIFT Nifty, which fell more than 200 points in the morning trade. The Indian benchmark equity indices may extend losses for a fifth straight session, as rising crude oil prices, persistent foreign fund outflows and renewed US-Iran uncertainties dampened investor sentiment despite fresh record highs on Wall Street.
GIFT Nifty was trading at 23,254 at around 8 am, down 188 points or 0.8 percent from the previous close, indicating a weak opening for domestic equities. The signal comes after benchmark indices ended lower for a fourth consecutive session on Monday, with the Sensex falling 508 points and the Nifty shedding 165 points amid broad-based selling pressure.
Global cues were mixed. Wall Street ended at fresh record highs overnight, supported by gains in technology stocks and optimism around artificial intelligence. The Nasdaq rose 0.42 percent to a record closing high of 27,086.81, while the S&P 500 gained 0.26 percent to 7,599.96. The Dow Jones Industrial Average added 46 points to close at 51,078.88.
Technology shares led the gains after Nvidia surged 6.3 percent on unveiling a new AI-focused chip designed to bring artificial intelligence capabilities directly to personal computers. Microsoft rose 2.3 percent after Nvidia's CEO Jensen Huang described the companies' collaboration as an effort to "reinvent the PC" for the AI era.However, the positive lead from Wall Street failed to lift Asian markets. MSCI's Asia-Pacific index outside Japan fell about 0.5 percent, South Korea's Kospi dropped 2 percent, and Japan's Nikkei declined 0.7 percent as investors focused on renewed uncertainty surrounding the Middle East conflict and the outlook for global energy supplies.Oil prices remained elevated after surging more than 4 percent in the previous session. Brent crude was trading around $95 a barrel, while U.S. crude hovered near $92. Reports that Tehran had suspended indirect negotiations with Washington raised doubts about a near-term breakthrough in US-Iran talks. This also renewed concerns over the reopening of the Strait of Hormuz, a key route for global energy shipments.The rebound in crude prices is a significant concern for India, which imports the bulk of its oil requirements. Higher energy prices raise risks to inflation, corporate margins, the current account deficit and the rupee.Institutional flows also remain unsupportive. Foreign institutional investors extended their selling streak to a fourth straight session on June 1, offloading more than Rs 3,900 crore worth of equities. Domestic institutional investors continued to provide support, buying over Rs 5,100 crore and extending their buying streak to ten consecutive sessions.According to Ponmudi R, CEO of Enrich Money, Indian markets are expected to remain cautious as geopolitical uncertainty, elevated crude prices and persistent FII selling continue to weigh on sentiment. While domestic institutional buying is helping absorb part of the foreign outflows, markets remain highly sensitive to developments surrounding the U.S.-Iran standoff.On the technical front, Ponmudi said the Nifty faces immediate resistance around 23,500, followed by the 23,600-23,750 zone, while support is placed at 23,300-23,250. A break below this range could open the door for a move towards the 23,000 mark. For Bank Nifty, immediate resistance lies at 54,000-54,200, while support is seen in the 53,300-53,000 zone
Nifty50 Prediction for Tuesday, June 2 by experts: The 50-share NSE Nifty is expected to witness a cautious-to-negative start on Tuesday, June 2, after extending its losing streak for four straight sessions on Monday, June 1, as fresh geopolitical tensions in West Asia weighed on investor sentiment, triggering broad-based selling across sectors.
The NSE Nifty edged lower by 165.15 points, or 0.70 per cent, to end at 23,382.60. The BSE Sensex settled at 74,267.34, falling 508.40 points or 0.68 per cent.
Market experts said recent US strikes and escalating cross-border hostilities concerning Israel and Lebanon have increased geopolitical uncertainty, leading investors to adopt a risk-off approach.
Nifty50 Prediction for Tuesday, June 2 by experts
Market experts indicate that the structural bias for Tuesday remains deeply cautious to negative, with the index forming a strong bearish candlestick pattern on the daily charts as sellers maintain absolute control.
The technical analysts further believe that traders should prepare for another volatile session, with key support levels likely to determine the near-term direction of the market.
Nifty50 Prediction for Tuesday, June 2 by Sachin Gupta
Sachin Gupta, VP - Research, Technical Research, at Choice Broking Private Limited, stated, "Indian equity benchmark Nifty index witnessed a negative close on 1st June 2026. The index opened with a gap-up of 106.75 points at 23,654.50, indicating positive sentiment at the start of the session."
However, the optimism faded quickly as the index registered its intraday high of 23,733.70 within the first few minutes of trade. "Thereafter, persistent selling pressure dominated the market throughout the day, dragging the index steadily lower. The selling intensified towards the latter half of the session, with Nifty registering its intraday low of 23,357.95 near the close and eventually settling at 23,382.60. The index ended the session with a decline of 165.15 points or 0.70%," Gupta said.
On the daily timeframe, Gupta stated the index has formed a strong bearish candlestick pattern as sellers remained in control throughout the session. "The inability to sustain the gap-up opening and the close near the day's low indicate significant weakness in market sentiment. Notably, 40 out of the 50 constituents of the Nifty 50 index closed in negative territory, highlighting broad-based selling pressure across sectors," he stated.
From a technical perspective, Gupta noted that immediate support is placed in the 23,150-23,200 zone, while resistance is observed in the 23,480-23,550 range. "The Relative Strength Index (RSI) stands at 40.27, indicating weakening momentum and suggesting that the index is approaching the lower end of the neutral zone. The volatility index, India VIX, rose by 2.21% to close at 16.54, indicating an increase in market volatility and a cautious approach among market participants," he added.
"In the derivatives segment, notable call writing was observed at the 23,500 and 23,600 strikes, while put writing was concentrated at the 23,400 and 23,200 levels, indicating immediate resistance near higher levels while support remains positioned around lower strikes," Gupta said.
Sectorally, the market witnessed widespread weakness with most sectors ending in the red. Significant pressure was visible in FMCG, Financial Services, PSU Banks, Realty, Auto, Cement, Healthcare, and Private Banking stocks. However, selective strength was seen in the IT, Media, Metal, and select technology-related segments.
"Market breadth remained distinctly negative, with declining stocks substantially outnumbering advancing stocks, reflecting broad-based weakness across the broader market," the analyst said.
20 Day EMA - 23,766.26
50 Day EMA - 23,957.48
100 Day EMA - 24,327.40
200 Day EMA - 24,587.98
Nifty Bank Prediction for Tuesday, June 2
Sachin Gupta said, the Bank index opened with a gap-up of 164.65 points at 54,403.85, reflecting a positive start for the banking space.
"However, similar to the broader market, Bank Nifty registered its intraday high of 54,582.75 within the first few minutes of trading and thereafter witnessed relentless selling pressure throughout the session. The index gradually drifted lower and eventually registered its intraday low of 53,470.00 near the end of the trading day. Bank Nifty finally settled at 53,643.10, ending the session with a decline of 596.10 points or 1.10%," he stated.
On the daily timeframe, the expert said the Bank Nifty formed a strong bearish candlestick pattern, indicating aggressive profit booking and weakness across banking counters. "The fact that all 14 constituents of the Bank Nifty index closed in negative territory highlights the broad-based selling witnessed in the banking segment and reflects significant pressure across both private and public sector banking stocks," he added.
From a technical perspective, immediate support is placed in the 53,000-53,100 zone, while resistance is observed in the 54,100-54,300 range. The Relative Strength Index (RSI) stands at 43.02, indicating weakening momentum and suggesting that the banking index remains under pressure in the near term, he stated.
He further said the benchmark indices witnessed a sharply negative session despite opening with gap-up gains. "Both Nifty and Bank Nifty failed to sustain higher levels and came under heavy selling pressure throughout the day, eventually closing near their respective intraday lows. The broad-based nature of the decline was evident from weak market breadth, with declines significantly outnumbering advances and all Bank Nifty constituents ending in negative territory. Rising volatility, persistent selling across key sectors, and failure to hold opening gains indicate that market sentiment has turned cautious in the short term," Gupta said.
Going forward, Gupta added the immediate support zones will be crucial for the indices, while sustained movement above resistance levels will be required to revive bullish momentum and improve overall market sentiment.
Nifty50 Prediction for Tuesday, June 2 by Nandish Shah
Nandish Shah - Deputy Vice President, HDFC Securities, said, "The Nifty declined for the fourth consecutive session, falling 165 points to settle at 23,382, its lowest closing level since May 12. Despite a positive start with a 107-point gap-up on the back of strong global cues, the index quickly lost momentum and continued its southward journey throughout the session. It eventually closed near the day's low, marking a sharp reversal of over 375 points from the intraday high. NSE cash market turnover was subdued, declining more than 6% compared to the May month average."
Among index constituents, Tech Mahindra, Infosys, and Coal India emerged as top gainers, while FMCG stocks-Hindustan Unilever, Tata Consumer, and ITC ended as top losers, Shah stated.
"Barring Nifty IT, Media and Metal, all sectoral indices closed in the red, with FMCG, PSU Banks and Realty leading the declines," he added.
Broader markets mirrored the weakness in the benchmark, with continued profit booking. The Nifty Midcap 100 and Smallcap 100 indices declined by 1.45% and 0.90%, respectively. Market breadth remained negative for the second consecutive session, with the BSE advance-decline ratio at 0.58, indicating sustained selling pressure in the mid- and small-cap segments following the recent rally, he said.
Indian rupee gave up early gains to close flat against the US dollar after weakening by over 25 paise intraday. The pressure was largely driven by rising crude oil prices and subdued domestic equity sentiment.
From a technical standpoint, Shah said Nifty continues to trade below all key moving averages, indicating a prevailing downtrend across timeframes. "Immediate support is placed at the recent swing low of 23,262; a decisive breach could accelerate downside momentum toward the 23,000. On the upside, the 23,700-23,800 zone is likely to act as a resistance band," the analyst concluded.
Sectoral indices performance on Tuesday, June 2
Sector-wise, most indices on the NSE ended in negative territory. Nifty FMCG emerged as the worst-performing sector, falling 2.30 per cent, followed by Nifty PSU Bank which declined 1.85 per cent and Nifty Auto which lost 1.70 per cent. Nifty Private Bank slipped 0.98 per cent, while Nifty Pharma declined 0.54 per cent.
A few sectors, however, managed to end higher despite the broader weakness. Nifty IT surged 2.66 per cent, Nifty Media gained 1.37 per cent and Nifty Metal advanced 0.49 per cent.
On Friday, the Sensex tumbled 1,092.06 points, or 1.44 per cent, to settle at 74,775.74. The Nifty dived 359.40 points, or 1.50 per cent, to end at 23,547.75.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. We suggest readers/investors to consult their financial advisors before making any money related decisions.)
