India Market Daily — 2026-05-29
Indian equity benchmarks closed in negative territory on May 29, 2026, with the Sensex down 1,092 points and Nifty 50 slipping below 23,600 amid persistent Iran-US geopolitical tensions and rupee weakness. Broader markets showed resilience with midcap and smallcap indices posting modest gains, while FII selling pressure continued to weigh on sentiment despite some DII support.
India Market Daily — 2026-05-29
Market Snapshot
| Index | Close | Change | % Change |
|---|---|---|---|
| Nifty 50 | Below 23,600 | Declined | -0.45% |
| Sensex | 75,867.8 | -142 pts | -0.19% |
| Bank Nifty | Not available | — | — |
| Nifty IT | Pressured | Declined | Negative |
| Nifty Pharma | Not available | — | — |
Top Gainers & Losers
Gainers
- Hindalco Industries: Among major gainers on Nifty
- Power Grid Corp: Strong upside momentum
- NTPC: Positive performance
- Tata Motors (Passenger Vehicle): Notable gainer
- Eternal: Among top performers
Losers
- ONGC: Down 5% — energy sector weakness amid crude price uncertainty
- ITC: Down 3% — consumer discretionary pressure
- HDFC Bank: Major drag on indices
- HDFC Life: Significant decline
- Wipro: IT sector weakness
FII & DII Activity
| Category | Net Buy/Sell (₹ Cr) | Trend |
|---|---|---|
| FII (Foreign) | -1,042.70 | Continued selling pressure |
| DII (Domestic) | +3,821.00 | Net buying support |
FIIs have maintained their selling streak amid geopolitical risks and rupee depreciation concerns, while domestic investors are stepping in selectively to provide downside support. The divergence reflects cautious foreign sentiment versus domestic accumulation at lower levels.
Sector Performance
Banking: HDFC Bank dragged the sector lower; broader banking weakness amid rate-cut expectations and deposit dynamics.
IT: Tech stocks under pressure with Wipro and TCS declining; rupee depreciation impacts dollar realization concerns.
Auto & Metal: Metal stocks led gains with Hindalco and Tata Steel showing strength; auto sector showed mixed performance with Tata Motors up.
Power: Power Grid and NTPC among gainers; renewable energy focus continues.
FMCG & Pharma: Profit-taking pressure visible; consumer staples facing demand headwinds.
Media and power sectors outperformed broader indices, while banking and IT lagged due to structural headwinds and currency concerns.
Key Market Movers
RBI Annual Report & Growth Outlook: The Reserve Bank of India released its annual report projecting India's FY27 GDP growth at 6.9% with CPI inflation at 4.6%, citing West Asia conflict risks as potential headwinds. The RBI warned that prolonged escalation could impact growth momentum through crude oil volatility and shipping disruptions. This positive long-term outlook has provided some cushion to market sentiment despite near-term uncertainties.
Iran-US Tensions Impact: Persistent geopolitical friction between Iran and the US continues to drive market volatility and crude oil price swings. Oil prices directly impact Indian import costs, inflation expectations, and corporate margins—particularly for energy companies like ONGC which saw sharp declines on crude uncertainty.
Rupee Depreciation Concerns: The Indian rupee remained under pressure, with traders closely monitoring RBI's intervention in spot and forward markets. Currency weakness raises import costs and impacts foreign exchange reserves, though rupee depreciation benefits export-oriented sectors like IT and pharmaceuticals in the medium term.
Macro & Global Cues
- Rupee: Weak against USD; central bank managing interventions amid FPI outflows and crude volatility
- Crude Oil: Elevated due to West Asia tensions; Brent prices affecting Indian import costs and inflation risks
- US Markets: Overnight weakness reflecting global risk-off sentiment and geopolitical concerns
- RBI Stance: 6.9% FY27 growth forecast; inflation risks tilted to upside at 4.6% CPI projection
Global tensions and crude oil price volatility remain the primary headwinds for Indian markets. While India's growth fundamentals remain resilient, near-term sentiment is clouded by external shocks. The RBI's constructive medium-term outlook has prevented sharper declines, but FPI selling continues to pressure indices despite DII support.
What to Watch Tomorrow
- RBI Monetary Policy Signal: Second rate-setting panel meeting for FY27 approaching; watch for guidance on rate trajectory amid inflation risks
- Oil Price Movement: Crude Brent tracking will be critical for inflation expectations and ONGC/energy stock direction
- FPI Flow Data: Continued institutional flows tracking remains key; any reversal in FPI selling could support indices
- Corporate Earnings & Economic Data: Monitor any significant earnings misses or macro data releases that could signal demand slowdown risks
Market data as of May 29, 2026, 9 hours ago
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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