Outlook

• Foreign investors' net equity holdings in India have plummeted to their lowest levels since 2016. • This decline is driven by global capital shifting toward AI, semiconductors, and tech-led growth in markets such as Taiwan and South Korea. • The trend is further exacerbated by slowing corporate earnings and macroeconomic pressures linked to oil prices, leading to muted Foreign Portfolio Investment (FPI) flows.

• Indian benchmark indices, the Sensex and Nifty, declined on Monday with the Sensex dropping over 500 points and the Nifty falling 0.7%. • The downturn was driven by rising crude oil prices, geopolitical tensions in West Asia, and uncertainty surrounding Iran-US relations, despite strong performance from IT stocks like Infosys and TCS. • Market pressure is further compounded by sustained Foreign Portfolio Investor (FPI) selling, inflation worries, and potential risks associated with the monsoon.

• On May 27, Citi analyst Patrick Cunningham lowered the price target for Dow Inc. (NYSE:DOW) from $48 to $41. • Despite the reduction in the price recommendation, Cunningham reiterated a "Buy" rating for the stock. • The revision comes amid growing concerns regarding "demand destruction," suggesting a potential decline in the market for the company's products.

• A survey of chief economists reveals that nearly 90% expect global economic growth to weaken over the next year, though only 13% anticipate a full-scale global recession. • An overwhelming 94% of respondents predict rising global inflation, primarily driven by the potential closure of the Strait of Hormuz. • This geopolitical instability is expected to spike energy and food costs while causing significant disruptions to international supply chains.

• The Sensex and Nifty are expected to experience volatility on May 27, 2026, driven by escalating tensions between the US and Iran. • Nifty has slipped below its 50-day EMA but continues to test the upper band of the 23,200-23,850 breakout zone. • Market activity shows selling pressure in Private Bank, Realty, and Consumer Durable indices, while Metal, FMCG, and Auto stocks saw selective buying.

• VynZ Research reports that the global AI in cybersecurity market was valued at USD 29.61 billion in 2025 and is projected to grow to USD 35.97 billion by 2026. • The growth is driven by the increasing integration of artificial intelligence to combat sophisticated cyber threats and automate threat detection. • This expansion matters as organizations shift toward AI-driven security frameworks to reduce response times and mitigate the impact of large-scale data breaches.

• Indian duo Satwiksairaj Rankireddy and Chirag Shetty will face Leo Rolly Carnando and Daniel Marthin in the men's doubles final of the BWF Super 500 Thailand Open 2026. • The championship match is scheduled for Sunday, May 17, and will take place at the Nimibutr Stadium in Bangkok. • Satwik and Chirag reached the final after a challenging tournament run, including a hard-fought semifinal victory over Malaysia's Goh Sze Fei and Nur Izzuddin.