Opening Bell - Morning Commentary - 13 May 2026
By Prime Research | Updated at: May 13, 2026 09:54 AM IST
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Semiconductors Slide in the US, Nifty Bleeds on Austerity Measures, Govt. Hikes Import Duty on Bullion.
Major U.S. stock indexes pulled back from recent all-time highs as a massive surge in semiconductor and artificial intelligence stocks lost momentum. The tech-heavy Nasdaq Composite and the S&P 500 both ended Tuesday lower, with notable declines in large-cap chipmakers like Micron and AMD following a period of extreme outperformance.
Consumer price index data for April showed an annual inflation rate of 3.8%, surpassing forecasts and marking the highest level since May 2023. This persistent price growth, driven largely by energy costs, has led market participants to price out immediate rate cuts and instead increase bets on potential Federal Reserve interest rate hikes later this year.
Oil prices continue to climb amid unresolved U.S.-Iran tensions, with President Trump dismissing Iran’s peace proposal and calling ceasefire talks on ‘life support.’
Intel fell 10% to around $116, and AMD dropped 5% to approximately $436 on Tuesday, pulling back sharply after Intel surged 35% and AMD gained 34% in just the prior week.
The Q1 2026 earnings season is proving exceptionally robust, with approximately 84% of S&P 500 companies reporting results that exceed analyst estimates.
The Indian rupee extended its losing streak to a third day, hitting an intraday record low of 95.74 amid general weakness in Asian markets. The depreciation is largely attributed to anxieties over elevated crude oil prices and their adverse impact on the fiscal deficit. Combined with rising risk aversion and sustained foreign capital outflows, these factors have positioned the rupee as the worst-performing Asian currency so far this year.
Nifty witnessed a sharp and broad-based sell-off, declining for the fourth consecutive session and ending 436 points lower at 23,379, marking its steepest single-day fall of the current financial year. Nifty has now surrendered over 1,100 points from its recent swing high of 24,482 in just four days.
Sectoral performance was overwhelmingly negative, with the Nifty IT and Realty indices each crashing by roughly 4%.
IT majors like TCS and Infosys reached new annual lows, pressured by concerns over AI-led service disruptions and a general retreat from growth stocks amid unfavourable global cues.
In a strategic move to curb imports and support the falling rupee, the Indian government increased the import duty on gold and silver to 15%. This policy adjustment aims to protect foreign exchange reserves and narrow the widening trade deficit caused by high energy prices and sustained capital outflows.
Nifty is now placed below its key short-term averages. The earlier support level of 23800 is now expected to act as a resistance on any pullback. On the downside, immediate support is placed near 23100.
Indian markets are likely to open flat on subdued global cues.
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