Sensex Today | Nifty 50 | Stock Market Highlights 29 May 2026: Benchmarks drop over 1% on late selloff
Indian equities reversed early gains and closed sharply lower on Friday, with the Sensex losing 1,092 points and the Nifty 50 falling 359 points, as a sudden late-session selloff erased intraday advances. Weak monsoon guidance, uncertainty over a potential US‑Iran deal and continued foreign investor selling drove broad-based declines across banks, metals and oil & gas.
Market Overview
| Index | 29 May 2026 Close | Move & % Change | Comments |
|---|---|---|---|
| Sensex | 74,775.74 | -1,092 pts (-1.44%) | Slid sharply in late trade after intraday gains; third straight decline. |
| Nifty 50 | 23,547.75 | -359 pts (-1.50%) | Dropped below 23,600 after a 1,300‑point intraday swing on reports around US‑Iran deal. |
| BSE 150 Midcap | approx. midcap index -1.25% | -1.25% | Saw profit booking after recent outperformance. |
| BSE 250 Smallcap | approx. smallcap index -0.61% | -0.61% | Declined but outperformed large caps. |
| India VIX | 16.35 | +9% | Volatility rose as traders priced geopolitical and monsoon risks. |
Note: figures are approximate; final exchange data not available at time of publication.
- Nifty 50 fell for the third consecutive session.
- BSE market capitalisation dropped by about ₹5 lakh crore to ₹466 lakh crore.
- Intraday, Nifty slipped to around 23,485 before recovering marginally.
- As many as 43 Nifty stocks closed in the red.
Key Market Statistics
| Statistic | Value / Change | Context |
|---|---|---|
| BSE market cap | ₹466 lakh crore | Down from about ₹471 lakh crore, wiping out roughly ₹5 lakh crore in a day. |
| Investor wealth loss | ₹6 lakh crore (approx.) | Based on broader BSE data, including midcaps and smallcaps. |
| India VIX | 16.35, up ~9% | Indicates higher near-term volatility expectations. |
| Rupee close | 95.05 per USD | Gained 53 paise, best single-day rise since April 2. |
| FII flows (Wed provisional) | -₹1,043 crore | Foreign investors net sellers in 13 of 18 May sessions. |
- Rupee strength followed a decline in crude prices and likely RBI intervention, as per traders.
- Domestic equity and forex markets were shut on Thursday for a holiday, compressing reactions into Friday’s session.
Key Movers
Top Gainers (Nifty 50)
| Stock | Sector | Notable Factor |
|---|---|---|
| Tech Mahindra | IT | Benefited from sector-wide buying in IT; Nifty IT closed higher. |
| HCLTech | IT | Tracked gains in global tech and weaker rupee tailwinds. |
| Wipro | IT | Rose over 4% on expanded AI partnership and strong ADR rally. |
| Infosys | IT | Participated in IT rally amid optimism on AI and US tech spending. |
| Wipro (additional context) | IT | Also supported by ongoing ₹15,000 crore buyback programme. |
Note: figures are approximate; final exchange data not available at time of publication.
- Nifty IT was the only major sectoral index to end in the green.
- Wipro’s American Depositary Receipts jumped 18.54% overnight to $2.43.
- Wipro’s partnership with ServiceNow to deploy agentic AI workflows lifted sentiment.
Top Losers (Nifty 50)
| Stock | Sector | Notable Factor |
|---|---|---|
| Power Grid Corporation | Power | Fell over 4%, emerged as top Sensex loser. |
| InterGlobe Aviation (IndiGo) | Aviation | Dropped over 3% ahead of Q4 results. |
| ONGC | Oil & Gas | Declined as oil & gas index slipped about 2.5%. |
| Bajaj Finance | Financials | Lost over 2% amid risk-off in financials. |
| UltraTech Cement, Tata Steel, Sun Pharma, NTPC | Various | Each fell more than 2%, contributing to index drag. |
- Bank, financial, FMCG and pharma indices each fell over 1%.
- Oil & gas and metal indices lost up to 2%.
Sectoral Action
| Sector / Index | Direction (approx.) | Key Drivers |
|---|---|---|
| Nifty IT | up 0.6% | Supported by AI optimism, weaker rupee and strong US tech cues. |
| Nifty Oil & Gas | down 2.5% | Hit by profit booking as Brent eased below $93 per barrel. |
| Nifty Metal | down over 2% | Declined on global risk sentiment and monsoon-related demand concerns. |
| Nifty Auto | down up to 2% | Tracked broader risk-off despite recent earnings strength. |
| Nifty Healthcare / Consumer Durables | down up to 2% | Witnessed broad-based selling in late trade. |
| Bank Nifty, Financial Services, Private Bank | down over 1% | Pressured by FII selling and higher volatility. |
| Nifty FMCG, Pharma | down over 1% | Impacted by fears of higher food inflation from weak monsoon. |
Note: figures are approximate; final exchange data not available at time of publication.
- Broader indices Nifty Smallcap 100 and Nifty Midcap 100 fell around 1% each.
- Advance‑decline data earlier in the day showed more gainers, but breadth weakened into the close.
Drivers Of The Selloff
- Monsoon downgrade: IMD projected southwest monsoon rainfall at 90% of long-period average, the lowest in 11 years.
- Lower rainfall raised concerns of higher food inflation and pressure on rural demand.
- US‑Iran deal uncertainty: Reports indicated a 60‑day ceasefire extension agreement awaiting US presidential approval.
- Markets worried about the timing and contours of any final peace deal and its impact on crude and risk assets.
- Profit-taking: Traders booked gains ahead of the weekend after a recent recovery and on reports of an impending US‑Iran arrangement.
- MSCI adjustments: Index changes effective at the close of May 29, including additions like Federal Bank, Indian Bank, MCX and National Aluminium, added to intraday volatility.
- Foreign flows: Provisional NSE data showed foreign investors remained net sellers, though the pace of outflows has moderated.
- “The market witnessed broad-based selling pressure following the IMD’s monsoon forecasts to 90% of the long-period average, raising concerns among investors. The prospect of deficient rainfall, coupled with the increasing likelihood of an El Niño weather pattern, has heightened fears of elevated food inflation in the coming months.” — Vinod Nair, Head of Research, Geojit Investments.
Global Cues And Commodities
| Market / Asset | Movement | Notes |
|---|---|---|
| Brent crude (futures) | about -2% to below $92 | Fell on expectations of extended US‑Iran ceasefire and potential reopening of Hormuz. |
| WTI crude (futures) | about -2% to around $87–88 | Tracked Brent lower after weeks above $100 earlier in the conflict. |
| US equities (S&P 500, Nasdaq) | modest gains | Closed at record highs on tech strength and easing oil. |
| MSCI Asia Pacific | up about 1.7% | Regional risk sentiment improved on ceasefire reports. |
| USD index | slightly lower | Weaker dollar aided EM currencies including INR. |
Note: figures are approximate; final exchange data not available at time of publication.
- Global markets reacted positively to signs of progress in US‑Iran talks, but Indian equities focused on domestic monsoon risks.
- Japan’s crude imports hit multi‑decade lows as the Iran conflict disrupted supplies, underscoring sensitivity to Middle East developments.
Technical Outlook
- Nifty had been consolidating between 23,800–24,000 before Friday’s breakdown.
- Analysts flagged 23,800 as a key support; a breach opens 23,600–23,500.
- Resistance remains in the 24,000–24,100 band, with upside targets near 24,200–24,400 if reclaimed.
- Bank Nifty support zones were identified around 54,100 and 52,800, with resistance near 55,200–55,500.
- “The key index witnessed consolidation in the 23,850–24,000 zone, with a narrow rangebound session, closing on a flat note, with bias and sentiment maintained positive, with a slightly cautious approach.” — Vaishali Parekh, Vice President, Technical Research, Prabhudas Lilladher (pre‑crash view).
- India VIX above 16 suggests traders should expect wider intraday swings.
- Options data showed heavy call writing at 24,000–24,200 and put interest near 23,800–23,900, indicating a broad consolidation band before the breakdown.
Outlook For Investors
- Analysts highlighted that Q4 earnings have broadly beaten expectations, especially in financials, autos and metals.
- “There are some positive trends on the economic and market front. Brent crude declining to below $93 is a big positive. This will also help stabilise the rupee, which, in turn, can restrain the FPI outflows. Already, the intensity of FPI selling has come down.” — V K Vijayakumar, Chief Investment Strategist, Geojit Investments.
- Market participants are watching:
– Progress on the US‑Iran ceasefire and any impact on crude supply routes.
– IMD updates on monsoon progression and any revision to rainfall estimates.
– FII flow trends and domestic institutional support around key index levels.
– Volatility in sectors sensitive to rural demand and energy prices.
FAQs
Why did the Sensex and Nifty fall sharply despite positive global cues?
Weak IMD monsoon guidance, uncertainty around the US‑Iran deal and continued FII selling outweighed supportive global factors like lower crude and firm US markets.
A sudden bout of profit-taking in the last hour triggered a swift slide across large caps.
Which sectors were most affected by the selloff on 29 May 2026?
Banks, financials, oil & gas, metals, autos, healthcare and consumer durables led the decline, with sector indices falling up to 2%.
IT was the only major sector to close higher, supported by AI-related optimism and currency tailwinds.
How did crude oil and the rupee move, and why does it matter for equities?
Brent crude fell to below $92 per barrel, easing concerns over India’s import bill.
The rupee appreciated to 95.05 per dollar, helped by lower oil and possible RBI intervention.
Lower crude and a stronger rupee improve macro stability, which can support equities once immediate risk events are priced in.
Why did the Sensex and Nifty fall sharply despite positive global cues?
Weak monsoon guidance from IMD, uncertainty around a US‑Iran ceasefire deal and continued FII selling outweighed supportive global factors like lower crude prices and firm US markets, triggering broad-based profit-taking and a sharp late-session slide.
Which sectors were most affected by the selloff on 29 May 2026?
Banks, financials, oil & gas, metals, autos, healthcare and consumer durables led the decline, with sector indices losing up to 2%. IT was the only major sector to end higher, supported by AI optimism and currency tailwinds.
How did crude oil and the rupee move, and why does this matter for equities?
Brent crude fell to below $92 per barrel and the rupee appreciated to 95.05 per dollar, helped by lower oil and likely RBI intervention. Lower crude and a stronger rupee ease pressure on India’s trade and inflation, improving macro stability and medium-term equity sentiment.
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