Daily Market News Update — 27th-28th May 2026

Midnight News Update: 27-28 May 2026

Iran outlined the initial terms of the US-Iran deal, with strong indications that the US may withdraw the blockade and exit the Straits of Hormuz soon. The US Military and the US Navy will move out of the areas surrounding Iran. Iran, in turn, will guarantee the smooth flow of ships through the Straits of Hormuz to pre-war levels within a month. The agreement is likely to be formalized through a binding resolution at the UNSC. Pakistan acted as the mediator between the US and Iran. Other details of nuclear enrichment and release of sanctioned Iranian funds are to be finalized.

New gold loans were up 115% in fiscal year FY26 as households made the best of the rally in gold prices. In fact, for banks and NBFCs, gold loans emerged as the biggest growth trigger in secured lending. During the year, the share of NBFCs in gold loans went up to 40%, while the share of PSBs fell to 34%. Total gold loan AUM rose by 47% yoy to ₹11.90 trillion. The growth in gold loans got the better of other unsecured borrowing sources like credit cards and personal loans. Gold loans have become a popular way to on-board new-to-credit borrowers in the market.

Adani Green commissioned the largest battery storage system ex-China, with 3.37 GWh capacity. This plant in Khavda in Gujarat is the world’s largest single location BESS deployment outside China. Adani Green plans to scale up storage to 50 GWh in the next 5 years. This commissioning is a major landmark step in strengthening grid reliability, peak-hour supply, and enabling RE to deliver round-the-clock power at scale. AGEL will add another 10 GWh in FY27. In the clean energy transition that India is contemplating, large-scale energy storage systems will have to play a defining role.

MUFG Bank of Japan has warned that if the tensions in the Straits of Hormuz do not ease soon, the rupee could go as low as ₹100/$, while the RBI could hike the repo rates up to 6.75% in the next few monetary policy statements. The repo rate hike would be triggered by higher oil prices, inflation impact, and supply chain constraints. The RBI may also look at higher rates to stem the outflow of capital. The lowest the rupee touched was ₹96.97/$, before the RBI intervened by selling dollars. Even if the war were to end, the Super El Nino was a major inflation risk.

Online gaming portals may take a hit of over ₹1,20,000 crore as Supreme Court upheld the retrospective GST levy on online gaming. This will impact billions of dollars of capital that flowed into online gaming and has deep implications for companies like Dream11, MPL, Delta Corp, Nazara Tech, WinZO, and Zupee. These gaming sites will be taxed on face value of bets. Experts believe this could seriously impact long-term viability of the gaming business in India. SC also rejected the contention that GST should only apply to platform fees, instead of the entire amount at stake.

As the global AI rally gathers momentum, there are more AI companies that are joining the Trillion Dollar market cap club. TSMC is already among the 10 most valuable companies in the world by market cap. Now, other AI Companies like Samsung Electronics, SK Hynix, and Micron Technology have also joined the Trillion-dollar market cap club. Not surprisingly, in the last few days, the market cap of the Taiwan market went past India to inch closer to $5 trillion. The Taiwan story has been largely driven by the AI and semiconductor story. Korea is not too far behind India.

India online preparatory education company, Physicswallah, has posted a 50% rally in total revenues for Q4FY26 to ₹919 crore, while the full year revenues for FY26 stood 35% higher at ₹3,899 crore. The company also saw its losses in the quarter narrow sharply to just ₹69 crore, although the profitability still appears to be elusive, considering the heavy cash burn in the business. Physicswallah was one of the few digital companies to have listed recently on the bourses in India, following an IPO. Online and offline enrolments showed strong gains in Q4.

With premium pricing available on gas, ONGC is expected to focus more on the gas business to boost profitability in the coming quarters. ONGC is also expanding its renewable energy portfolio. It will ramp up its high-priced gas production amidst rising demand as Indian gas users look inward for supplies to avoid a repeat of the blockade. ONGC now producers and sells more gas than oil, which has anyways been stagnating. Gas is also likely to benefit from favourable pricing reforms and lower handling costs. New-Well gas production is likely to drive profits for ONGC.