01
🕊️ Iran — Biggest Story of the Day
Trump Pauses Iran Strike — Calls for a Deal With "No Nuclear Weapons" After Gulf Leader Requests
Late last night, US President Trump said he had called off a "scheduled attack of Iran" tomorrow after requests from the leaders of Qatar, Saudi Arabia, and the UAE. On Truth Social, he wrote: "A Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East. This Deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN!"
This was the single most market-moving development of the day. Brent crude, which was trading above $111, eased to $110.60 on the news. The Sensex opened 0.4% higher at 75,589 riding this optimism. But Trump also cautioned that he has told his military to be "prepared to go forward with a full, large scale assault of Iran, on a moment's notice" if a deal is not reached. Iran has delivered an updated peace proposal to the US via Pakistan mediators. Trump's response: "Iran wants to make a deal, but I'm not satisfied with it."
The market correctly read this as cautiously positive but not conclusive — hence the fade from the morning highs.
📊 Impact: Every step toward a deal = Brent falls, INR recovers, OMCs rally, VIX drops
02
⚖️ Corporate — Adani
US Drops Criminal Charges Against Gautam Adani — After $10 Billion US Investment Pledge and $275M Treasury Settlement
The US Department of Justice moved to dismiss all criminal fraud charges against Gautam Adani. The case — which had accused him of bribing Indian government officials to secure a solar energy contract and misleading US investors — is now over at the DOJ level.
The context: Adani pledged a $10 billion investment in the US. The US Treasury separately announced a $275 million settlement over Iran sanctions violations — Adani was accused of importing LPG through a Dubai trader that had actually sourced the gas from Iran. Adani Enterprises has now ceased Iran-origin LPG imports and created a new Head of Compliance role.
The SEC civil settlement still needs court approval — it would require Gautam Adani to pay $6 million and Sagar Adani $12 million in civil penalties. But the criminal cloud, which had hung over the group since November 2024, has effectively lifted.
📊 Adani Enterprises +1.79% · Adani Green +1.81% today
03
💱 Currency
Rupee Hits a Fresh Record Low of ₹96.61 — Settles at 96.53, Fell 17 Paise Today Alone
The Indian rupee continued its relentless slide. It touched a fresh all-time low of ₹96.61 during Tuesday's session before settling at ₹96.53 — down 17 paise from Monday's close of ₹96.36. In the past 14 months, the rupee has depreciated from ₹85.53 to ₹96.53 — a loss of nearly 13% of its value.
The proximate cause today: the US Dollar Index climbed above 99.3 as Iran war-linked inflation expectations kept the Fed in hawkish territory. Rising crude oil import costs are widening India's current account deficit, creating structural demand for dollars.
The silver lining — and this matters — is that for every exporter in India, this is a windfall. IT companies billing in dollars, pharma exporters, textile manufacturers — their rupee revenues are growing without any change in their business performance. That is why Nifty IT outperformed even on a down day.
📊 Watch: ₹97 is next psychological level — RBI may intervene if breached
04
⛽ Energy / Policy
Second Petrol-Diesel Price Revision in a Week — India Raised Prices ~₹0.90/Litre Again Today
India raised petrol and diesel prices by approximately ₹0.90 per litre — the second revision in less than a week. The first hike was ₹3/litre on May 15. This brings the cumulative increase to nearly ₹4 per litre in 7 days after 49 months of price freeze.
This underscores the scale of the inflation risk India is managing. OMCs are still losing money on every litre sold — just less than before. Natural gas companies (MGL, GAIL, Adani Total Gas, IGL) are also under pressure after CNG rates were hiked ₹2/kg across major metro cities.
The macro math: crude at $110.60/barrel with rupee at ₹96.53 means India's effective crude cost is ₹8,984 per barrel — up from roughly ₹5,865 pre-war. That's a 53% increase in rupee terms. No incremental ₹4/litre hike resolves this gap alone.
📊 OMC stocks remained under pressure despite the hike — market knows more hikes are needed
05
💻 IT Sector
IT Stocks Outperform Again — TCS, Infosys, HCL Tech, Tech Mahindra Rose 3.4%–4.5%
For the second consecutive session, IT was the standout sector. TCS, Infosys, HCL Tech, Tech Mahindra, Oracle Financial, and Persistent Systems rose between 3.4% and 4.5%. The sector is benefiting from the combination of a weak rupee (structural margin boost), improving global tech sentiment (US Nasdaq was positive overnight), and genuine AI revenue growth.
The contrast with last week is striking. Nifty IT fell -5.71% last week. It has now recouped a meaningful portion of those losses in two sessions. At ₹96.53 to the dollar, Indian IT companies have a structural earnings advantage that wasn't available 14 months ago — and it requires no new client, no new contract, no new technology.
📊 Nifty IT consecutive outperformance — watch if this continues Wednesday
06
📋 Compliance Alert
12 Days to Form 16 Deadline — May 31 Is Non-Negotiable for Employers
All employers must issue Form 16 (TDS certificate for AY 2026-27) by May 31, 2026. Penalty for late issuance: ₹500 per day under the Income Tax Act. This year's Form 16 is governed by the old Income Tax Act, 1961 — not the new IT Act 2025. The new Act applies from Tax Year 2026-27 (i.e., income earned from April 1, 2026 onwards).
Also approaching: June 15 is the first Advance Tax instalment deadline for Tax Year 2026-27 (15% of annual liability). Salaried individuals with capital gains, freelancers, business owners, and investors with significant equity returns must calculate and pay via Challan 280 on the income tax portal. Missing this attracts 1% per month interest under Section 234C.
📅 Action: Form 16 by May 31 · Advance Tax by June 15 · ITR by July 31 (to retain Old Regime option)