India Market Daily — 2026-05-31
Indian equity markets closed in the red on May 29, 2026, with the Sensex falling 1,092 points and Nifty 50 slipping below 23,600 as auto, metal, and energy stocks dragged performance. Foreign institutional investors turned net sellers with a ₹21,105.86 crore outflow, while domestic institutions supported markets with ₹16,764.14 crore inflows. Global headwinds from West Asia tensions and crude oil volatility continued to weigh on sentiment.
India Market Daily — 2026-05-31
Market Snapshot
| Index | Close | Change | % Change |
|---|---|---|---|
| Sensex | ~74,200 | -1,092 | -1.45% |
| Nifty 50 | ~23,550 | -360 | -1.5% |
| Bank Nifty | Data unavailable | — | — |
| Nifty IT | Up 0.6% | — | +0.6% |
| Nifty Auto/Metal/Energy | Down significantly | — | -2% to -5% (laggards) |
FII & DII Activity
| Category | Net Buy/Sell (₹ Cr) | Trend |
|---|---|---|
| FII (Foreign) | -21,105.86 | Heavy selling; sustained outflow pressure |
| DII (Domestic) | +16,764.14 | Counter-support; buying dips |
Foreign investors remained net sellers for the session, pulling out ₹21,105.86 crore as geopolitical risks from West Asia tensions and crude oil volatility spooked global capital. Domestic institutions stepped in with ₹16,764.14 crore in buying, partially cushioning the market decline but unable to prevent benchmark indices from closing lower.
Top Gainers & Losers
Gainers
- IT Sector: Nifty IT Index rose 0.6%, outperforming broader indices amid resilience in software services demand.
- Specific stock details unavailable from current data.
Losers
- ONGC: Fell ~5% amid crude oil price volatility and energy sector weakness.
- ITC: Declined ~3% as consumer staples faced selling pressure.
- Auto/Metal Indices: Significant declines of 2-5% each, reflecting weakness in cyclical sectors.
Sector Performance
- IT: +0.6% (sole gainer; benefiting from global software demand)
- Auto: Down 2-3% (cyclical weakness amid macro headwinds)
- Metal: Down 2-3% (commodity price pressure)
- Energy/Oil & Gas: Down 3-5% (ONGC led declines; crude volatility)
- Banking & Financials: Marginally negative (part of broader selloff)
- FMCG/Consumer: Down 1-2% (ITC and peers under pressure)
IT stocks were the sole bright spot as investors rotated toward defensive, earnings-driven sectors. Cyclical plays in autos and metals suffered as geopolitical tensions and crude oil price swings heightened risk aversion.
Key Market Movers
1. RBI Annual Report: FY27 GDP Growth at 6.9%, Inflation at 4.6% The Reserve Bank of India projected India's GDP growth at 6.9% for FY2026-27 (lower than FY26's 7.6%) and inflation at 4.6%, citing resilience in domestic demand despite external headwinds. The RBI warned that the West Asia conflict poses short-term risks to growth and inflation, noting that geopolitical tensions and crude oil volatility could pressure the economy in coming months.
2. West Asia Tensions Drive Crude Oil Rally & Market Volatility Crude oil prices surged on fresh geopolitical tensions as the U.S. resumed strikes on Iran, pushing Brent crude higher. The energy sector, including ONGC, fell sharply as elevated oil prices fuel inflation concerns and reduce corporate margins. Global crude volatility remains a key risk factor for Indian markets.
3. U.S. Markets Rally Despite Turmoil; S&P 500 & Nasdaq Set Records U.S. equities extended their record-setting rally on May 29, with the S&P 500 and Nasdaq reaching new highs, buoyed by strong earnings and AI-driven optimism (Dell jumped 33% on AI demand). However, this divergence highlights that global capital is favoring U.S. technology stocks over emerging markets like India amid geopolitical uncertainty.
4. Broader Markets Show Resilience; Midcap & Smallcap Indices Down But Hold Ground While benchmark indices fell sharply, broader market indices (Nifty Midcap and Smallcap) showed relative resilience, with declines of 1.3% and 0.85% respectively. This suggests institutional money is selectively rotating into less-saturated, high-growth segments outside the top 50.
Macro & Global Cues
- Rupee: Came under pressure amid FII selling and crude oil volatility; weakened vs. USD as foreign capital exited equity markets.
- Crude Oil: Brent crude surged on U.S. strikes on Iran; elevated energy prices threaten India's inflation and fiscal position, key headwind flagged by RBI.
- US Markets: S&P 500 and Nasdaq set fresh records, powered by AI optimism and strong earnings; divergence underscores capital preference for developed market tech over emerging markets.
- RBI Policy Stance: Growth projections downgraded to 6.9% for FY27 (from 7.6% in FY26); inflation vigilance urged as monsoon uncertainty and fuel price hikes loom.
The broader macro picture shows India facing a challenging external environment. While domestic fundamentals remain solid (UPI crossed 200 billion annual transactions, per RBI), geopolitical risks and crude oil volatility pose near-term headwinds to growth and inflation. The divergence between surging U.S. markets and weakening Indian equities reflects a flight to safety and AI-driven capital concentration in developed markets.
What to Watch Tomorrow
- RBI Monetary Policy Decision: Expect clarity on repo rate stance; inflation vigilance and West Asia risks may prompt cautious language.
- Monsoon Progress Reports: Any updates on monsoon timing and coverage could ease food inflation concerns and support equity sentiment.
- Crude Oil & Geopolitical Developments: Further U.S.-Iran escalation or oil price movements will be critical market triggers.
- FII Flows & Currency Moves: Watch for stabilization in rupee and sustained FII inflows needed to restore confidence in Indian equities.
Note: Data coverage limited to May 29, 2026 (2 days prior to publication). Real-time closing figures for May 31 were unavailable in source results; users should verify current index levels on NSE/BSE websites for Friday's session.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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