Mumbai, May 22 -- Indian equities head into the next trading week on a cautious note even as easing geopolitical tensions and stabilising global macro conditions ignited hopes of global recovery from the West Asian conflict. Crude oil prices retreated from recent highs, with Brent crude falling back toward the $92-94 per barrel range after reports of renewed diplomatic engagement between the US and Iran.

On the domestic front, macroeconomic data revealed a softening in domestic velocity as the HSBC India Manufacturing PMI dropped to a multi-month low of 54.3 in May in April, squeezed by high energy costs and Middle East trade disruptions.

The Indian Rupee (INR) has also hit record lows, plunging toward the Rs 96-per-dollar mark due to f...