Closing Bell: Sensex Crashes 1,092 Points as Weak Monsoon Forecast, FII Selling and US-Iran Uncertainty Weigh on Markets

29 May 2026 , 05:31 PM

The Indian benchmark indices ended sharply lower on May 29, 2026, with Nifty tumbling to 23,547 and Sensex crashing over 1,092 points to close at 74,775, as a toxic mix of a below-normal monsoon forecast, unresolved US-Iran peace deal uncertainty, and relentless FII selling triggered a broad-based selloff across Dalal Street. Aggressive profit booking in the final hour intensified the decline, pushing the Nifty below the 23,550 marks. IT was the only bright spot in an otherwise deeply red session, with all other major sectoral indices closing in the red.

Market Overview: Nifty, Sensex, and Bank Nifty Performance

• Nifty 50 closed at 23,547.75 down 359.40 points (1.50%)
• Sensex ended at 74,775.74, down 1,092.05 points (1.44%)
• Nifty Bank settled at 54,239.20, down 614.65 points (1.12%)

Top Gainers

1. Tech Mahindra Limited– closing at 1,480.00 up by 1.68%

2. HCL Technologies Limited– closing at 1,182.00 up by 1.44%

3. Nestle India Limited – closing at 1,443.00 up by 1.09%

Top Losers

1. Power Grid Corporation of India Limited – closing at 287.80 down by 4.11%

2. Oil & Natural Gas Corporation Limited – closing at 265.80 down by 3.01%

3. Max Healthcare Institute Limited – closing at 965.00 down by 2.86%

4. Eicher Motors Limited – closing at 7,213.00 down by 2.78%

Trending stocks

1. Inter Globe Aviation Limited –

• Closed at ₹4,420.00, down 3.28%

• Investors Remained Cautious Ahead of Earnings: Shares of IndiGo declined over 3% as investors preferred to wait for the company’s Q4 FY26 results, with market participants closely monitoring the impact of higher costs and operational challenges on profitability.

• Higher Fuel Costs Raised Margin Concerns: Elevated aviation turbine fuel (ATF) prices and rising fuel-related expenses due to ongoing Middle East geopolitical tensions increased concerns over operating margins during the March quarter.

• Operational Disruptions Impacted Performance: The airline faced flight delays, cancellations, and additional compensation costs after difficulties in implementing revised DGCA pilot and cabin crew rest norms, affecting operational efficiency during the quarter.

• Regulatory Restrictions Weighed on Growth Outlook: Following the December scheduling disruptions, the DGCA directed IndiGo to reduce domestic flight operations by 10% during the winter schedule, raising concerns about capacity utilisation and revenue growth.

• Management Commentary and New CEO Focus: Investors were also keenly awaiting management guidance and comments from the newly appointed CEO regarding future growth plans, cost management, fleet expansion, and the airline’s outlook for FY27

2. Wipro Limited –

• Closed at ₹204.10, up 1.25%

• AI Partnership Boosted Investor Sentiment: Wipro shares gained strong investor attention after the company announced an expanded partnership with ServiceNow to deploy agentic AI workflows across key enterprise functions including IT, HR, procurement, and cybersecurity.

• Strong Rally in US ADRs Supported Optimism: Wipro’s American Depositary Receipts (ADRs) surged 18.5% on the New York Stock Exchange, reflecting strong global investor confidence in the company’s AI-led growth strategy.

• Focus on AI and Enterprise Automation: The partnership will combine Wipro Intelligence, the company’s AI-powered platform suite, with the ServiceNow AI Platform, strengthening Wipro’s position in the rapidly growing enterprise AI and automation market.

• Buyback Announcement Continued to Support the Stock: Investor sentiment remained positive after Wipro approved a ₹15,000 crore share buyback plan. The company will repurchase up to 60 crore shares at ₹250 per share, providing additional support to shareholder value. (Wipro buyback record date has been fixed as June 5)

• Improving IT Sector Outlook Added Momentum: Wipro also benefited from broader buying in the IT sector driven by attractive valuations, a weaker rupee, improving US technology spending expectations, and growing confidence that AI adoption will create long-term growth opportunities for Indian IT companies.

 

Sectoral Performance Index

Indices	Change
Nifty Oil & Gas	-2.47%
Nifty Metal	-2.02%
Nifty Auto	-1.96%
Nifty Consumer Durables	-1.62%
Nifty Energy	-1.58%
Nifty India Defence	-1.58%
Nifty Chemicals	-1.576%
Nifty Financial Service Ex-Bank	-1.55%
Nifty Infrastructure	-1.54%
Nifty FMCG	-1.51%
Nifty PSU Bank	-1.50%
Nifty Private Bank	-1.17%
Nifty IT	0.60%

 

Sectoral Performance & Key Reasons

Most sectors witnessed broad-based selling pressure on 29 May 2026 as investors reacted negatively to weak monsoon forecasts, uncertainty surrounding the US-Iran peace deal, continued FII selling, and aggressive profit booking. Oil & Gas (-2.47%) emerged as the worst-performing sector as geopolitical uncertainty and volatility in crude oil prices weighed on sentiment. Metal (-2.02%), Auto (-1.96%), Consumer Durables (-1.62%), Energy (-1.58%), Chemicals (-1.57%), and Infrastructure (-1.54%) also declined sharply due to concerns over inflation, weaker demand outlook, and risk-off sentiment across global markets. Financial Services Ex-Bank (-1.55%), PSU Banks (-1.50%), and Private Banks (-1.17%) remained under pressure amid continued foreign investor selling and profit booking in financial stocks. Defence (-1.58%) also witnessed selling despite its strong long-term outlook. However, IT (+0.60%) was the only sector to close in the green, supported by strong buying interest in export-oriented technology companies, attractive valuations after recent corrections, optimism around AI-led growth opportunities, improving US technology spending outlook, and the benefit of a weaker rupee, which boosts earnings for dollar-earning IT firms such as Infosys, TCS, HCL Tech, and Wipro.

 

Main Reasons for Stock Market down Today

1. Uncertainty Over the US-Iran Peace Deal

Markets remained cautious as the proposed US-Iran ceasefire extension and peace agreement was still awaiting approval from US President Donald Trump. Although negotiations have progressed, the absence of a final agreement kept geopolitical risks elevated and prevented investors from taking aggressive positions.

2. Continued FII Selling Pressured Equities

Foreign Institutional Investors (FIIs) continued to remain net sellers in Indian equities. Persistent foreign outflows increased pressure on large-cap stocks and weakened overall market sentiment, contributing significantly to the sharp decline witnessed during the session.

3. Weak Monsoon Forecast Triggered Inflation Concerns

Investor sentiment weakened after the India Meteorological Department (IMD) forecasted below-normal rainfall at 90% of the Long Period Average (LPA), marking the weakest monsoon outlook in over a decade. A poor monsoon raises concerns about food inflation, weaker rural demand, and slower economic growth, leading to broad-based selling across sectors.

4. Aggressive Profit Booking Triggered a Late-Session Selloff

After recent market gains and with uncertainty surrounding global developments, investors chose to lock in profits ahead of the weekend. The market witnessed a sharp selloff in the final hour of trading, dragging the Sensex down by over 1,000 points and pushing the Nifty below the 23,550 mark as selling intensified across multiple sectors.

Summary–

May 29, 2026, witnessed a sharp selloff in the Indian stock market as weak monsoon forecasts, geopolitical uncertainty, continued FII selling, and aggressive profit booking dragged benchmark indices significantly lower:

• Oil & Gas, Metal, Auto, Consumer Durables, Energy, Chemicals, and Infrastructure sectors faced heavy selling pressure due to inflation concerns, crude oil volatility, weak demand outlook, and risk-off sentiment across global markets.

• Financial Services, PSU Banks, and Private Banks remained under pressure amid persistent foreign investor outflows, profit booking, and weakness in large-cap financial stocks.

• IT was the only sector to close in positive territory, supported by strong buying in export-oriented technology stocks, AI-related optimism, attractive valuations, a weaker rupee, and positive developments such as Wipro’s expanded AI partnership with ServiceNow.

With Nifty falling 359.40 points (-1.50%), Sensex declining 1,092.05 points (-1.44%), and Bank Nifty slipping 614.65 points (-1.12%), investor sentiment weakened due to uncertainty surrounding the US-Iran peace deal, continued FII selling, concerns over a below-normal monsoon and rising inflation risks, along with aggressive profit booking that triggered a sharp late-session market correction.

Disclaimer – The stock/s and indices mentioned in this article is discussed solely for informational and educational purposes. It should not be construed as investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult a financial advisor before making any investment decisions. Investments in securities market are subject to market risks. Read all the related documents carefully before investing.