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Government assures sufficient fuel stocks amid panic buying and dryouts in select states. Joint Secretary Sujata Sharma cited increased demand and logistical issues, not shortages. Fuel prices have risen significantly, with state-run companies still facing losses. Citizens are urged to conserve fuel and explore alternatives.

The Indian rupee strengthened significantly against the US dollar, closing at 95.26, driven by positive global sentiment surrounding a potential US-Iran peace deal and easing West Asian tensions. RBI Governor’s assurance of orderly forex market movements and positive remarks on the rupee’s valuation also boosted confidence.

Finance minister Nirmala Sitharaman expressed openness to investor concerns regarding capital gains tax, assuring that the government will consider stakeholder suggestions. She also defended recent fuel price hikes, attributing them to global crude oil costs and highlighting the government’s prior absorption of excise duties.

Stock markets will observe a shortened trading week with a closure on Thursday, May 28, for Bakri Eid. This marks the second holiday this month. Investors can anticipate several more market holidays throughout 2026, including those for Muharram, Ganesh Chaturthi, and Diwali. While some holidays fall on weekends, a special Muhurat Trading session is expected.

Dalal Street braces for a week of global uncertainty, with Middle East tensions, crude oil prices, and foreign investor behavior dominating market sentiment. Hopes for US-Iran negotiation progress offer a glimmer of optimism, but caution prevails. Investors will also monitor the rupee’s movement and the RBI’s significant dividend payout.

US Secretary of State Marco Rubio indicated a “beneficial” and “sustainable” trade deal with India is likely, following significant progress. He emphasized that the Trump administration’s trade policy aims to address global imbalances, not target specific nations. Rubio’s visit also included discussions on critical minerals, energy, and defense, while India raised concerns about US visa

Bank customers across India should note extended holiday closures from May 26-28, 2026, impacting numerous states for national and religious observances like Kazi Nazrul Islam’s birth anniversary and Eid-ul-Adha. Remember, second and fourth Saturdays also mean branch shutdowns. Plan ahead for essential services, as digital banking remains fully operational.

Indian overseas travel spending saw a significant drop in March, with remittances falling by over $212 million from February. This decline, attributed to rising oil prices and a weakening rupee, occurred despite travel remaining the largest component of outward remittances under the Liberalised Remittance Scheme.

Gold prices are expected to remain steady this week, influenced by US-Iran talks and upcoming US economic data. Silver, however, may continue to outperform due to geopolitical tensions and high crude oil prices. Investors await signals on the Federal Reserve’s next policy move amidst shifting statements from Washington and Tehran.