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EQUITY
Post Session: Quick Review
May-29-2026

Indian equity benchmarks ended significantly lower on Friday, with both the Nifty and Sensex closing with around 1.5% losses, ahead of major macro-economic data as well as RBI policy decision in the next week. After making a cautious start, soon indices traded within a narrow range around the neutral lines, as investors monitored rising geopolitical tensions in the Middle East. Markets witnessed intense selling pressure during the second half of the session. As a result, the indices ended deep in the red.

Some of the important factors in trade:

Continued FIIs selling: Foreign fund outflows dented market sentiments as provisional data showed that foreign portfolio investors (FPIs) sold shares worth Rs 1,042.70 crore in the Indian equity market on May 27, 2026.

IMD revises monsoon forecast to 90% of LPA: Traders were cautious as the India Meteorological Department (IMD) revised its forecast for the 2026 southwest monsoon downward, predicting that India will receive only 90% of the Long Period Average (LPA) rainfall, placing the season firmly in the below normal category. This marks a downgrade from the IMD's April projection of 92% of LPA.

India, Canada to avoid sensitive sectors in trade pact talks: Traders took note of Commerce and Industry Minister Piyush Goyal’s statement that India and Canada have decided to prioritize low-hanging fruit, work on areas of convergence and avoid seeking concessions in sensitive sectors in the negotiations for the Comprehensive Economic Partnership Agreement (CEPA).

On the global front: European markets are trading mostly higher, while Asian markets ended mostly in green after reports suggested that the U.S. and Iran have reached a temporary agreement to extend their ceasefire by 60 days, resume unrestricted shipments through the Strait of Hormuz and begin negotiations over Tehran's nuclear program.

The BSE Sensex ended at 74775.74, down by 1092.06 points or 1.44% after trading in a range of 74589.11 and 76220.02. There were 3 stocks advancing against 27 stocks declining on the index. (Provisional)

The few gaining sectoral indices on the BSE were IT up by 0.42%, Telecom up by 0.40% and TECK up by 0.01%, while Oil & Gas down by 2.75%, Metal down by 2.30%, Utilities down by 2.23%, Energy down by 2.08% and Basic Materials down by 1.94% were the top losing indices on BSE. (Provisional)

The few gainers on the Sensex were Tech Mahindra up by 1.87%, HCL Technologies up by 1.42% and Larsen & Toubro up by 0.72%. On the flip side, Interglobe Aviation down by 3.69%, Power Grid Corp down by 3.48%, Tata Steel down by 3.31%, NTPC down by 2.86% and Mahindra & Mahindra down by 2.84% were the top losers. (Provisional)

Meanwhile, amid geopolitical uncertainty and the West Asia crisis weighing on local currency, the Former RBI Governor Duvvuri Subbarao has said the central bank must allow some more depreciation in the rupee to help absorb external pressures, and choose liquidity measures, rather than going for rate hikes, if inflation risks intensify. He noted that the monetary policy should be used as a ‘last resort’ to defend the exchange rate. Further, the rupee should be allowed to adjust rather than be rigidly defended because the current pressures reflect a deterioration in India's external balance. A weaker rupee acts as a natural shock absorber.

Subbarao pointed that stabilising the exchange rate during times of pressure is fundamentally a challenge of managing expectations and the Exchange-rate crises are ultimately crises of confidence. He added that if investors, importers and households begin to believe the rupee will weaken further, they behave in ways that actually make it weaken further. Exporters delay bringing money back home, importers rush to buy dollars, households move into gold, and investors hedge aggressively. Therefore, communication becomes as important as intervention and policymakers must act decisively, but without appearing panicked or defensive.

Moreover, he highlighted that Monetary Policy Committee has a difficult balancing act with limited room to manoeuvre. He pointed that that lowering interest rates to support growth could aggravate inflation and intensify exchange-rate pressures, while aggressive rate increases could hurt economic activity and impact the GDP growth. For the current situation, he suggested that RBI should wait and assess whether inflationary pressures become broader through the system, instead of immediately resorting to policy rate hikes.

The CNX Nifty ended at 23547.75, down by 359.40 points or 1.50% after trading in a range of 23484.75 and 24002.80. There were 5 stocks advancing against 45 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tech Mahindra up by 1.94%, HCL Technologies up by 1.60%, Wipro up by 1.32%, Larsen & Toubro up by 0.72% and Infosys up by 0.09%. On the flip side, Interglobe Aviation down by 3.61%, Eicher Motors down by 3.26%, Bajaj Auto down by 3.22%, Power Grid Corp down by 3.20% and ONGC down by 3.16% were the top losers. (Provisional)

European markets were trading mostly in green; UK’s FTSE 100 increased 22.25 points or 0.21% to 10,448.21 and France’s CAC rose 74.33 points or 0.91% to 8,263.20, while Germany’s DAX lost 5.55 points or 0.02% to 25,086.70.

Asian markets settled mostly higher on Friday tracking Wall Street’s gains overnight, with Brent crude falling below $92 a barrel as geopolitical tensions eased after reports of a proposed 60-day ceasefire extension between the US and Iran as well as the possible easing of shipping restrictions through the Strait of Hormuz. Japan’s Nikkei surged above 66,000 for the first time ever led by artificial intelligence and semiconductor-related shares, and after data showed Tokyo's core inflation rate rose more slowly than expected in May. South Korea’s Kospi jumped to a new record high, driven by strong gains in artificial intelligence-related stocks on expectations surrounding CEO Nvidia Jensen Hwang's visit to Korea. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,068.57

-30.07

-0.73

Hang Seng

25,182.39

176.23

0.70

Jakarta Composite

6,127.38

-2.81

-0.05

KLSE Composite

1,683.07

-1.86

-0.11

Nikkei 225

66,329.50

1,636.38

2.53

Straits Times

5,037.86

48.67

0.98

KOSPI Composite

8,476.15

290.86

3.55

Taiwan Weighted

44,732.94

1,096.50

2.51
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