The equity benchmarks ended sharply lower on Friday, May 29, after a sudden wave of selling in the final hour of trade wiped out nearly ₹6 lakh-crore in investor wealth.
The Sensex plunged 1,092 points, or 1.44 percent, to close at 74,775.74, while the Nifty 50 fell 359 points, or 1.50 percent, to settle at 23,547.75.
The market had traded in a narrow range for most of the session before witnessing an abrupt sell-off towards the close. Both benchmark indices have now fallen for three consecutive sessions and lost nearly 1 percent for the week.
The overall market capitalisation of BSE-listed companies dropped to about ₹465 lakh-crore from nearly ₹471 lakh-crore in the previous session, erasing around ₹6 lakh-crore in a single day.
Broader markets also came under pressure:
• BSE Midcap index declined 1.25 percent
• BSE Smallcap index dropped 0.61 percent
Among Nifty 50 stocks, 43 ended in the red.
Top losers included:
• Power Grid Corporation
• InterGlobe Aviation (IndiGo)
• ONGC
IT stocks offered some support to the market, with Tech Mahindra, HCLTech and Wipro emerging as the top gainers.
Except for Nifty IT, which gained 0.60 percent, all major sectoral indices closed in negative territory.
Key losers included:
• Oil & Gas
• Metal
• Auto
• Healthcare
• Consumer Durables
These sectors declined by as much as 2 percent.
Bank Nifty, Private Bank, Financial Services, FMCG and Pharma indices fell more than 1 percent each.
Analysts attributed the sharp decline mainly to aggressive profit booking ahead of the weekend amid lingering uncertainty over a possible US-Iran peace agreement.
Reports indicated that Tehran and Washington had reached a tentative understanding to extend the ceasefire and reopen shipping through the Strait of Hormuz, but the agreement was reportedly awaiting approval from US President Donald Trump.
Another major trigger was the India Meteorological Department’s revised monsoon forecast. The IMD now expects India to receive rainfall equivalent to 90 percent of the long-period average during the southwest monsoon season, raising concerns about food inflation and rural demand.
According to Vinod Nair of Geojit Investments, fears of deficient rainfall and a possible El Niño weather pattern increased investor nervousness.
Analysts also pointed to MSCI index adjustments, which took effect at the close of trade on Friday, as another reason for heightened volatility during the final 30 minutes of trading.
The following stocks were added to the MSCI Global Standard Index under the May 2026 review:
• Federal Bank
• Indian Bank
• Multi Commodity Exchange of India (MCX)
• National Aluminium Company
The rupee appreciated by 53 paise to close at 95.05 against the US dollar. Meanwhile, Brent crude prices fell more than 1 percent and hovered near $91 a barrel.
According to Rupak De of LKP Securities, the Nifty has broken below a rising trendline on the daily chart, signalling renewed bearishness. He expects the correction to extend towards the 23,250 level in the near term. Immediate resistance is seen around 23,700.
Sudeep Shah of SBI Securities, said immediate support for Nifty lies in the 23,400-23,350 zone. According to Shah, a sustained break below this range could drag the index towards 23,200 and even 23,050 in the short term, while resistance is expected around the 23,750-23,800 zone.
