Stock Market Highlights: BSE Sensex tanks 1,092 points; Nifty 50 slips below 23,600

Indian equity benchmarks witnessed sharp selling pressure on Friday, with the Sensex plunging more than 1,000 points and investors losing nearly Rs 5 lakh crore in market value, as concerns over a weak monsoon, uncertainty around a US-Iran peace deal and continued foreign investor selling weighed on sentiment.

The Sensex closed 1,092 points lower at 74,775.74, while the Nifty50 fell more than 359 points to settle at 23,547.75. Market volatility also surged, with India VIX jumping around 9 per cent.

Here are the key factors behind today's selloff:

1. IMD forecasts weakest monsoon in 11 years
Investor sentiment took a hit after the India Meteorological Department (IMD) projected below-normal rainfall for the June-September monsoon season.

"Monsoon rainfall from June to September will be 'below normal' and is likely to be 90% of the long-period average," M Ravichandran, secretary at the Ministry of Earth Sciences, said during a briefing.

A weaker monsoon raises concerns about food inflation, rural demand and overall economic activity, particularly if El Niño conditions intensify.

"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," said Vinod Nair, Head of Research at Geojit Investments.

"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," he added.

2. Iran-US peace deal remains uncertain
Global markets also remained cautious amid uncertainty surrounding efforts to formalise a peace agreement between the US and Iran.

Reports indicated that both sides have agreed to extend the existing ceasefire by 60 days, although the proposal is yet to receive approval from US President Donald Trump.

US Vice President JD Vance said negotiators were "very close" to a deal but acknowledged that discussions were continuing over key issues, including uranium enrichment.

The absence of a final agreement has kept investors worried about geopolitical risks and energy markets.

3. Persistent FII selling
Foreign institutional investors (FIIs) continued to remain net sellers in Indian equities.

According to provisional NSE data, foreign investors sold shares worth Rs 1,043 crore on Wednesday. FIIs have been net sellers in 13 of the 18 trading sessions so far in May.

The sustained outflow has added pressure on domestic equities despite relatively resilient corporate earnings.

Market experts said the pace of foreign selling has moderated and corporate earnings have remained better than expected.

"A positive trend from the market perspective is that Q4 results have been better-than-expected. The double-digit earnings growth in financials, automobiles and metals is impressive," said VK Vijayakumar of Geojit Investments, ET quoted.

"Trends indicate that FY27 will be good for defence, capital goods, renewable energy, financials and pharmaceuticals. Growth sectors like digital platform companies are getting accumulated on declines," he added.

The selloff was broad-based, with Power Grid, IndiGo, Bajaj Finance, UltraTech Cement, Tata Steel, Sun Pharma and NTPC among the major losers, while Tech Mahindra and HCLTech bucked the trend and ended higher.

Sensex tanks 1,092.06 points to settle at 74,775.74; Nifty slumps 359.40 points to 23,547.75.

Stock market today: Nifty50 and BSE Sensex slumped in mid-day trade, moving to the red territory. At 1:12 PM, Nifty50 was trading at 23,785.85, down 121 points or 0.52%. BSE Sensex was at 75,586.35, down 281 points or 0.37%.

The frontline indices persist trading in their narrow range as their bollinger bands contract suggesting a further decline in the daily volatility .

Coming to Nifty, the zone of 23760-23780 will act as a crucial support for the index while the resistance lies in the zone of 24000-24020.

On the downside, if the index slips below the level of 23760 then the next support is placed in the zone of 23500-23400.

In an event of a surge above 24020, the index can experience an extension of the rally towards 24220.

On the options front, meaningful call writing witnessed across 23900 & 24000 strikes. On the put side, 23800 has a substantial open interest, followed by 23700 strike.

Nifty's Advance Decline Ratio is at 14:36.

Speaking of Sensex levels, support is at 75,500 while resistance is at 76,300.

Three days of close above 20 day SMA encourages us to start the day on a positive note. However, Wednesday’s hammer is a reminder that bears are very much dominant. Initial trading range is expected to be 23840-24000, with low prospects of a vertical move on either side, even if range breakout unfolds. Larger range is seen as 23500-24450, says Anand James, Chief Market Strategist, Geojit Investments Limited.

Market sentiment improved after media reports indicated that the US and Iran have likely agreed to extend the ceasefire for 60 days and work towards a peace deal. It remains unclear whether the ceasefire would be accompanied by an opening of the strait of hormuz and when a peace agreement would be reached.

That said, for now, as talks continue, markets are trading with cautious optimism this week. Brent crude has fallen by 10% this week and was last trading at $93.10 pbl., while the DXY and bond yields have moderated from recent highs.

Heading into the day, speeches by Fed members along with preliminary inflation readings in some European nations are likely to be closely watched. In the Euro Area, higher-than-expected inflation readings could cement rate hike expectations by the ECB, supporting the EUR/USD pair.

In the domestic market, the INR has retraced its weakness (against USD) from last week and stabilized close to 95.69 on Wednesday. We could see further gains in the pair today on positive global news, moderation in oil prices and the US dollar. We see a range of 95-96 for the pair in the near-term, says HDFC Bank.

"There are some positive trends on the economic and market front. Brent crude declining to below $ 93 is a big positive. This has happened on expectations of a deal between US and Iran. Therefore, if a deal happens crude can decline further, thereby improving India’s macros which have been under pressure from the energy crisis. This will also help stabilise the rupee, which, in turn, can restrain the FPI outflows.

Already, the intensity of FPI selling has come down. A positive trend from the market perspective is that Q4 results have been better-than-expected. The double digit earnings growth in financials, automobiles and metals is impressive. Trends indicate that FY 27 will be good for defence, capital goods, renewable energy, financials and pharmaceuticals. Growth sectors like digital platform companies are getting accumulated on declines, says VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Stock market today: Nifty50 and BSE Sensex opened in green on Friday as global crude oil price fell. At 9:16 AM, Nifty50 was trading at 23,972.30, up 59 points or 0.27%. BSE Sensex was at 76,114.88, up 105 points or 0.15%.

“Indian equity markets are expected to open on a flat to mildly positive note, with Gift Nifty trading around 23,881, up by 8 points, indicating steady opening cues for domestic indices.

Nifty ended on a flat to marginally negative note on 27th May 2026, closing at 23,907.15, down 6.55 points or 0.03%, amid profit booking near higher levels. The index touched an intraday high of 23,983.20 before witnessing selling pressure, though late-session buying helped trim losses. Technically, the formation of a gravestone doji-like candlestick pattern indicates indecisiveness and rejection near higher levels. RSI stood at 51.35, while India VIX declined sharply to 14.98, reflecting easing volatility. Immediate support is placed around the 23,500–23,600 zone, while resistance is seen near the 24,000–24,100 range.

Bank Nifty ended on a mildly negative note on 27th May 2026, closing at 54,853.85, down 239.05 points or 0.43%, amid profit booking after the recent recovery. The index touched an intraday high of 55,221.70 before witnessing gradual weakness during the latter half of the session. Technically, the formation of a bearish candlestick pattern reflects cautious sentiment and inability to sustain at higher levels. The RSI stood at 51.35, indicating neutral momentum with the index currently in a consolidation phase. Immediate support is placed around the 54,000–54,200 zone, while resistance is seen near the 55,300–55,500 range.
Foreign Institutional Investors (FIIs) remained net sellers on 27th May 2026 and offloaded equities worth ₹1,042.70 crore, reflecting cautious positioning by overseas investors amid consolidation near higher levels. Meanwhile, Domestic Institutional Investors (DIIs) continued to provide strong support to the market and remained net buyers with equity purchases worth ₹3,821 crore, helping maintain stability in the broader market sentiment.

The market setup currently reflects a consolidation phase after the recent recovery, with benchmark indices struggling to sustain momentum near higher levels. Although selective buying interest and lower volatility continue to provide stability, profit booking at resistance zones is limiting fresh upside traction. A decisive move beyond the immediate trading range will be important to confirm the next directional move, while holding key support levels may keep the broader undertone resilient in the near term,” says Hitesh Tailor, Research Analyst, Choice Equity Broking Private Limited.

Indian equities are likely to begin Friday’s session on a largely flat note as market participants monitor developments in West Asia and look for clarity on whether a proposed extension of the ceasefire between the United States and Iran will formally take effect.

According to sources cited by Reuters, Washington and Tehran reached an understanding on Thursday to prolong the ceasefire and ease restrictions on maritime movement through the Strait of Hormuz. However, the arrangement is yet to receive approval from US President Donald Trump, while Iranian state media reported that the agreement had not been finalised.

At 7:52 a.m. IST, GIFT Nifty futures were trading at 23,890.05, indicating that the benchmark Nifty 50 could open close to Wednesday’s closing level of 23,907.15.

Meanwhile, Brent crude prices slipped to around $93 a barrel, while Asian equities advanced 1.6%, supported by optimism surrounding the proposed US-Iran deal and continued enthusiasm around artificial intelligence-driven stocks.

Ponmudi R, Chief Executive Officer of Enrich Money, said the sharp correction in crude oil prices and progress toward a potential truce between the US and Iran were positive factors for equity markets. However, he noted that persistent selling by foreign investors and uncertainty over the final approval of the agreement could restrict any significant upside in the near term.

Index in the daily chart formed a second consecutive high wave candle with a small real body and shadows in either direction signaling consolidation amid stock specific action after recent strong up move. Bank Nifty earlier during the week has generated a breakout above the last 9 sessions consolidation range (54,400-52,800) signaling strength. Index sustaining above the Monday’s gap area (54,055-54,590) will keep the bias positive and will open further upside towards 56,000 and 56,600 levels in the coming sessions being the measuring implication of the recent consolidation range. Index has immediate support at 54,000 levels, failure to hold above 54,000 will signal extension of the consolidation. While major support is placed at 53,000-52,500 being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback (49955-57456).

A gradual recovery in domestic markets could be sustained if crude oil prices remain soft and global energy supply concerns continue to recede. However, sentiment is likely to remain guarded — mixed signals from the US-Iran negotiating process, compounded by fresh US military strikes in southern Iran, have revived geopolitical risk premiums that markets had begun to price out. The path forward is narrower than last week's rally implied. The Nifty 50 was effectively flat on Wednesday, declining -0.03%, with the Midcap 100 and Smallcap 100 posting modest gains of 0.4% and 0.2% respectively. The Midcap 100 also touched a fresh record high of 62,704.10 during the session.

Sensex weekly and monthly derivatives expiry added to the cautious undertone. Brent crude softened 3.5% to USD 93 per barrel, extending its retreat from above USD 100, though the move provided limited comfort given that the underlying conflict drivers remain unresolved. Metals and Power emerged among the stronger sectors. The Nifty Metal Index gained 3% to a record high, aided by increase in metal prices, continued infrastructure-led demand, and healthy Q4FY26 earnings, with several companies reporting margin improvement across ferrous and non-ferrous segments. Ongoing capacity additions also continue to support growth visibility. The BSE Power Index also rose nearly 3% to a fresh high, as Q4FY26 earnings reflected strong execution and sustained order inflows across the power equipment and transmission & distribution segments. Healthy order books continue to provide visibility on revenue growth over the coming quarters. On the policy and capital markets front, two OFS-related developments warrant attention. The government is reportedly preparing to formally market a circa 2% stake sale in LIC, expected to raise up to ₹10,000 crore, with institutional marketing likely beginning next month and execution targeted for late June or early July.

Separately, Coal India fell over 6% after the government announced an OFS of up to 2% at a floor price of ₹412 per share, a 10% discount to the previous close — the discount quantum was the primary driver of the sharp negative reaction, as it resets price discovery expectations for the overhang. On the structural front, the Quad's announcement of a USD 20 billion critical minerals framework is a materially positive long-term development for India's metals, mining, and clean-tech ecosystem.

The initiative is explicitly designed to reduce dependence on China-dominated critical mineral supply chains across rare earths, processing, and recycling — and positions India as a preferred destination for investment in strategic metals and battery materials infrastructure. The read-through for domestic companies exposed to critical minerals, specialty metals, and recycling is constructive on a 12–24 months horizon, even if near-term earnings impact is limited, says Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Global equity markets hovered near record levels on Friday, while oil prices were on track for their sharpest weekly decline in almost two months as investors awaited further clarity on a proposed agreement involving the reopening of the Strait of Hormuz and an extension of the ceasefire between the United States and Iran.

According to sources cited by Reuters, Washington and Tehran have reached an understanding to prolong the ceasefire and ease restrictions on shipping through the strategically important waterway. However, the arrangement still awaits approval from US President Donald Trump, while Iranian state media reported that the deal has not yet been formally concluded.

Market movements across Asia were relatively subdued. S&P 500 futures traded largely unchanged after the benchmark US index recorded another record closing high in the previous session.

Meanwhile, Brent crude futures slipped by around 50 cents per barrel to $93.17, putting the benchmark on course for a weekly decline of more than 10%.
The US dollar was also headed for a modest weekly loss, reflecting a pullback in Treasury yields. However, analysts remain uncertain about whether the weakness in the greenback will persist, noting that even if a US-Iran agreement is finalised, it may not immediately reverse the inflationary pressures created by the recent surge in energy prices.

Jason Wong, Senior Market Strategist at BNZ in Wellington, said markets appear to be operating on the assumption that an agreement will eventually be reached and that shipping through the Strait of Hormuz will resume without restrictions.

Index in the daily chart formed a small bullish candlestick pattern with shadows in either direction signaling consolidation amid stock specific action. Index is seen sustaining above the 20 days EMA. Nifty earlier during the week has generated a breakout above the last 9 sessions trading range of 23,200-23,850. Index is currently seen testing the upper band of the breakout area. Going ahead, index sustaining above the Monday’s gap area (23,835-23,922) will keep the bias positive and will open further upside towards 24,200-24,300 levels in the coming sessions being the trendline resistance joining the highs of April & May 2026.

Index has immediate support at 23,600 levels, failure to hold above 23,600 will signal extension of the consolidation. While major support is placed at 23,200-23,000 being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback (22,182-24,601).