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Benchmarks fall sharply during late trade
May-29-2026

Benchmarks fell sharply during late trade, with cut of over a percent each, amid uncertainty surrounding extension of ceasefire between US and Iran, and restrictions on shipping through the Strait of Hormuz. Further, continued capital outflows by foreign institutional investors (FIIs) has weighed on market risk sentiments. FIIs were the net sellers on Wednesday, offloading securities worth Rs 1,042.70 crore. Some cautiousness also came as India Meteorological Department (IMD) has downgraded the forecast for southwest monsoon at 90% from earlier forecast of 92%. Market participants also avoided risky bids ahead of major macro-economic data (Manufacturing and Services PMI, Industrial production, GDP) as well as RBI policy decision in the next week.

On the global front, Asian equity markets were trading mostly in green amid rising AI optimism. European equity markets were trading mostly in green as brent crude oil prices retreated to trade below $93 per barrel mark.

The BSE Sensex is currently trading at 74774.36, down by 1093.44 points or 1.44% after trading in a range of 74762.52 and 76220.02. There were 7 stocks advancing against 23 stocks declining on the index.

The few gaining sectoral indices on the BSE were IT up by 0.41% and Telecom up by 0.38%, while Oil & Gas down by 2.60%, Metal down by 2.49%, Utilities down by 2.09%, Basic Materials down by 1.98%, Auto down by 1.97% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.80%, Tech Mahindra up by 2.76%, HCL Tech. up by 2.12%, Larsen & Toubro up by 1.45% and Trent up by 1.16%. On the flip side, Interglobe Aviation down by 2.45%, Power Grid Corp down by 2.37%, Tata Steel down by 1.89%, NTPC down by 1.87% and Reliance Industries down by 1.51% were the top losers.

Meanwhile, the World Economic Forum (WEF) in its latest May 2026 edition of the Chief Economists’ Outlook has showed that the global economic outlook has darkened, with 89% of the chief economists surveyed expect global growth to weaken over the next 12 months, and more than one in five expect it to weaken significantly, on the back of the conflict in the Middle East and closure of the Strait of Hormuz which have disrupted vital energy, food and fertilizer flows, threatening access and growth. Besides, global inflation is expected to rise as volatility increases.

However, India’s growth prospects continue to stand out. Of the chief economists surveyed, 52% expect strong or very strong growth in the year ahead, making India the geography with the strongest growth expectations in the survey. While the economy still remains resilient and growth for 2026-27 is projected at 6.5%, it faces rising risks from the conflict in the Middle East. The survey report further noted that depreciation pressures have forced the central bank to shed $40 billion in foreign-exchange reserves in March to stabilize the currency.

Besides, the survey report said that regional outlooks remain divergent. The US and India are expected to maintain moderate to strong growth, supported by investment and consumption, but face inflationary pressures. China’s outlook has improved, while Europe’s growth prospects have weakened amid energy shocks and stagflation risks. South-East Asia shows resilience but is exposed to energy and food import vulnerabilities. The Middle East and North Africa face sharp deterioration in growth and employment, while the outlook for Sub-Saharan Africa and Latin America holds steady.

The CNX Nifty is currently trading at 23569.40, down by 337.75 points or 1.41% after trading in a range of 23566.10 and 24002.80. There were 5 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.00%, HCL Tech up by 1.97%, Wipro up by 1.38%, Larsen & Toubro up by 0.82% and Nestle up by 0.29%. On the flip side, Interglobe Aviation down by 4.07%, Bajaj Auto down by 3.22%, Max Healthcare Inst down by 3.09%, ONGC down by 3.03% and NTPC down by 2.99% were the top losers.

Asian equity markets were trading mostly in green; Nikkei 225 surged 1762.88 points or 2.65% to 66,456.00, Taiwan Weighted added 1096.5 points or 2.45% to 44,732.94, Hang Seng advanced 182.84 points or 0.73% to 25,189.00, KOSPI increased 290.86 points or 3.43% to 8,476.15, Straits Times rose 46.29 points or 0.92% to 5,035.48 and Jakarta Composite gained 49.93 points or 0.81% to 6,180.12, while Shanghai Composite weakened 30.07 points or 0.74% to 4,068.57.

European equity markets were trading mostly in green; UK’s FTSE 100 increased 17.36 points or 0.17% to 10,443.32 and France’s CAC rose 77.63 points or 0.94% to 8,266.50, while Germany’s DAX lost 15.55 points or 0.06% to 25,076.70.
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