Indian Market In May: Coal India’s OFS, Tax on Gaming, BSNL’s Profit & More

Market sentiment dampened in May as domestic indices succumbed to mounting global and domestic pressures to post notable losses. While defensive buying sent the Pharma and Healthcare sectors higher, Consumer Durables and PSU banks remained prominent laggards.

The market faced significant macro-driven strain, ranging from escalating geopolitical friction in the Middle East to the IMD lowering its southwest monsoon forecast, threatening rural demand and inflation stability, even as key commercial sectors faced structural selling.

Interestingly, a wave of late-month liquidations, further amplified by mandatory institutional rebalancing during the MSCI index reshuffle, dragged the benchmarks down sharply, signalling that investors were rapidly moving toward cash conservation and defensive positioning amid a shifting global layout.

Sector Radar

Market sentiment dampened in May, with the broad-based optimism of the previous month fracturing into isolated defensive pockets as macro headwinds intensified.

Nifty Pharma & Nifty Healthcare Index led the market’s positive column as investors aggressively rotated capital out of high-beta sectors. With domestic indices facing heat, these classic defensive segments acted as safe havens amid escalating geopolitical friction in the Middle East.

Nifty Metal maintained firm upward momentum, driven by rising international commodity prices. Potential supply-chain bottlenecks stemming from regional shipping disruptions added an upside premium to metals.

Nifty Consumer Durables emerged as a laggard as sentiment soured rapidly after the India Meteorological Department (IMD) officially lowered its southwest monsoon forecast to 90% of the long-period average, triggering immediate anxiety regarding structural rural demand destruction and sticky food inflation.

Nifty PSU Bank faced intense liquidation pressure as banking heavyweights bore the brunt of a broader risk-off mood. The downside was heavily amplified by global passive funds executing massive, mandatory volume rebalancing during the late-month MSCI index reshuffle.

Nifty Oil & Gas slid sharply as global energy markets grappled with volatility. Delays in securing crucial international diplomatic clearances to safely reopen the strategic Strait of Hormuz left energy traders highly risk-averse, fueling systematic offloading.

Precious Metals

Corporate Moves

Coal India Ltd.

The government launched an offer for sale to sell up to a 2% stake. The issue opened with a floor price of ₹412 per share, and it saw strong demand with subscription crossing 4x on day 1.

Wipro Ltd.

The company expanded its partnership with ServiceNow to implement and scale the impact of agentic AI workflows across core enterprise functions such as IT, HR, procurement, and cybersecurity.

Delta Corp Ltd.

The Supreme court upheld upheld the government’s retrospective 28% GST levy on online gaming, betting, and gambling activities, raising concerns over the company’s tax liabilities and future profitability.

Adani Power Ltd.

The company said that it will acquire a 24% stake in Jaiprakash Power Ventures and other thermal assets from Jaiprakash Associates for ₹4,193.59 crore.

Adani Enterprises Ltd.

Adani Group stocks were in focus after the United States Department of Justice dropped all criminal charges against Gautam Adani and Sagar Adani, ending a long-running securities and wire fraud case in New York.

Bharat Forge Ltd.

Bharat Forge will set up India’s first private-sector Marine Gas Turbine repair, overhaul, and indigenous development complex in Visakhapatnam through its aerospace business. This will support naval propulsion systems and strengthen India’s domestic defence capabilities.

Global And Macro View

Zooming out to key rates, trends, and global moves driving India’s economic story

• The Indian Rupee slumped to a record low of 96.90 against the US Dollar in late May. Persistent foreign portfolio outflows and an elevated national import bill, compounded by the Strait of Hormuz shipping closure entering its fourth month kept dollar demand exceptionally high.
• Listed commercial banks achieved a historic milestone in FY26, collectively reporting a record consolidated net profit exceeding ₹4 lakh crore, anchored by multi-quarter expansions in credit delivery and robust asset quality, with major lenders like State Bank of India (SBI), HDFC Bank, and ICICI Bank driving the bulk of the profitability.
• The India Meteorological Department revised its monsoon forecast, saying the country is likely to receive 90% of the long-period average rainfall this season and El Nino is likely to develop. As a result, India may see reduced crop production and water availability, hurting socio-economic growth.
• India’s weight in the MSCI Emerging Markets Index fell from 12.4% to 12.3%, however, the number of companies remained unchanged at 165. Hyundai Motor India, Jubilant Foodworks, Kalyan Jewellers, and Rail Vikas Nigam were removed, while Federal Bank, Multi Commodity Exchange of India, National Aluminium, and Indian Bank were added.
• India has slipped from fifth to seventh in global stock market rankings as South Korea and Taiwan moved ahead. The shift shows investors are favouring AI-linked semiconductor hubs over markets with limited listed chipmakers.
• India’s forex reserves fell by $8.09 billion to $688.89 billion in the week ended May 15, 2026.
•  BSNL’s revenue increased by 19% to ₹25,00 crore in two years due to improvement in infrastructure. Moreover, its EBITDA jumped dramatically from just ₹50 crore to nearly ₹7,000 crore, reflecting improved operational efficiency and a clear path to profitability.
  

FII vs DII Trends

Tracking India’s evolving market ownership trends

Institutional flows in May reflected a contrasting playbook, as foreign outflows continued to taper while domestic institutions aggressively stepped up their buying to act as a formidable counterweight to market volatility.

IPO Watch

Mainboard IPOs — Companies That Went Public (Market Cap > ₹1,000 Cr)

That’s a wrap for May!

From sector moves to macro trends and market risks, we’ve covered what mattered.

See you next month. Till then, stay informed and invest intelligently with Share.Market.