India, May 29 -- Domestic stock market benchmarks, the Sensex and the Nifty 50, ended sharply lower on Friday, 29 May, witnessing a sudden dip in the fag end of the session. The benchmark indices traded in a narrow range for most of the session amid persistent uncertainty surrounding a potential US-Iran deal. However, at the fag-end of trade, the markets witnessed a sharp, sudden sell-off, with the Sensex plunging nearly 1,300 points and the Nifty 50 slipping to 23,485. Finally, the 30-share pack Sensex ended 1,092 points, or 1.44%, lower at 74,775.74, while its NSE counterpart Nifty 50 settled at 23,547.75, down 359 points, or 1.50%.

Broader markets also witnessed profit booking, with the BSE 150 Midcap index losing 1.25% and the 250 Smallcap index dropping 0.61%. Investors lost 6 lakh crore in a single session as the overall market capitalisation of BSE-listed firms dropped to 465 lakh crore from nearly 471 lakh crore in the previous session. As many as 43 stocks ended in the red in the Nifty 50 index, with Power Grid Corporation, InterGlobe Aviation (IndiGo), and ONGC ending as the top losers. On the other hand, IT stocks Tech Mahindra, HCL Tech, and Wipro ended as the top gainers in the index. Among the sectoral indices, barring Nifty IT (up 0.60%), all ended in the red. Oil and Gas, Metal, Auto, Healthcare, and Consumer Durables lost up to 2%. Bank Nifty, Private Bank, Financial Services, FMCG, and Pharma declined over 1% each. The benchmarks extended losses for the third consecutive session. For the week, both shed nearly 1%.

What drove the stock market down today?

The sudden market decline could largely be attributed to aggressive profit-taking ahead of the weekend, as reports suggest a US-Iran deal is awaiting President Donald Trump's approval. According to Reuters, citing sources, both countries reached an agreement on Thursday to extend their ceasefire and reopen shipping through the critical Strait of Hormuz. Another key factor, as per experts, is the downward revision of the monsoon forecast by IMD (India Meteorological Department). As per the IMD, India is likely to receive 90% of its long-period average (LPA) rainfall during the Southwest monsoon season this year. "The market witnessed broad-based selling pressure following the IMD's monsoon forecasts to 90% of the long-period average (LPA), raising concerns among investors. The prospect of deficient rainfall, coupled with the increasing likelihood of an El Nino weather pattern, has heightened fears of elevated food inflation in the coming months," Vinod Nair, Head of Research, Geojit Investments, noted. To some extent, MSCI adjustments, which are to take place at the close of May 29, also contributed to market volatility. According to experts, the changes likely occurred in the last 30 mins of trade on Friday. Federal Bank, Indian Bank, Multi Commodity Exchange of India (MCX) and National Aluminium Company shares have been added to the MSCI Global Standard Index as part of MSCI's May 2026 index review. Meanwhile, the rupee rose by 53 paise to close at 95.05 against the US dollar on Friday. Crude oil benchmark Brent Crude declined more than 1% to trade near the 91 per barrel.

Nifty 50 technical view According to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty 50 has broken below a rising trendline on the daily chart, indicating a resurgence of bearish sentiment in the market. "On the downside, the correction may extend further in the near to short term, with the index potentially drifting towards the 23,250 mark and lower levels. On the upside, immediate resistance is placed near 23,700, and selling pressure is likely to persist as long as the index remains below this level," said De. Sudeep Shah, the head of technical and derivatives research at SBI Securities, said the immediate support for Nifty is placed in the 23,400-23,350 zone. He said any sustainable move below this zone could extend Nifty's weakness towards 23,200, followed by 23,050 in the short term. On the upside, Shah sees immediate resistance in the 23,750-23,800 zone.

Published by HT Digital Content Services with permission from Millennium Post.