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Key gauges end lower amid geopolitical uncertainty
May-29-2026

Indian equity benchmarks came under heavy selling pressure on Friday, amid reports of a below-normal monsoon season rainfall and geopolitical uncertainty related to the US-Iran ceasefire arrangement. Sustained FII selling also weighted on sentiments. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,042.70 crore on Wednesday, according to exchange data. 

Some of the important factors in trade: 

India, South Korea agree to address widening trade deficit: With an aim to double bilateral trade from the current $27 billion to $54 billion by 2030, the Commerce Ministry has said India and South Korea agreed to address the widening trade deficit within the broader framework of their bilateral trade pact.

India, Canada to focus on low-hanging fruit, avoid sensitive sectors in CEPA negotiations: Commerce and Industry Minister Piyush Goyal has said that India and Canada have decided to prioritize low-hanging fruit, work on areas of convergence and avoid seeking concessions in sensitive sectors in the negotiations for the Comprehensive Economic Partnership Agreement (CEPA). 

Central bank must allow rupee to depreciate to help absorb external pressures: Amid geopolitical uncertainty and the West Asia crisis weighing on local currency, the Former RBI Governor Duvvuri Subbarao has said the central bank must allow some more depreciation in the rupee to help absorb external pressures, and choose liquidity measures, rather than going for rate hikes, if inflation risks intensify. 

India’s energy investment to reach $170 billion in 2026 fueled by solar, refining expansion: The International Energy Agency (IEA) has stated that India's energy investment is set to reach a record $170 billion in 2026, fueled by rapid expansion in solar power and oil refining as the country accelerates efforts to meet rising energy demand and strengthen infrastructure for its clean energy transition. 

Global front: European markets were trading mostly in green, while Asian markets settled mostly higher after reports suggested that the U.S. and Iran have reached a temporary agreement to extend their ceasefire by 60 days, resume unrestricted shipments through the Strait of Hormuz, and begin negotiations over Tehran's nuclear program. 

Finally, the BSE Sensex fell 1092.06 points or 1.44% to 74,775.74 and the CNX Nifty was down by 359.40 points or 1.50% to 23,547.75. 

The BSE Sensex touched high and low of 76,220.02 and 74,589.11, respectively. There were 5 stocks advancing against 25 stocks declining on the index.   

The top gaining sectoral indices on the BSE were IT up by 0.42%, Telecom up by 0.40% and TECK up by 0.01%, while Oil & Gas down by 2.75%, Metal down by 2.30%, Utilities down by 2.23%, Energy down by 2.08% and Basic Materials down by 1.94% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.09%, HCL Technologies up by 1.49%, Larsen & Toubro up by 0.77% and Infosys up by 0.07%. On the flip side, Power Grid Corporation down by 3.45%, Tata Steel down by 3.40%, Interglobe Aviation down by 3.26%, NTPC down by 2.98% and Bajaj Finance down by 2.76% were the top losers.

Meanwhile, with an aim to double bilateral trade from the current $27 billion to $54 billion by 2030, the Commerce Ministry has said India and South Korea agreed to address the widening trade deficit within the broader framework of their bilateral trade pact. The move is likely to pave the way for a more balanced trade relationship between the two countries. The issue figured during the 12th round of negotiations on upgrading the existing Comprehensive Economic Partnership Agreement (CEPA), which was implemented in January 2010. Both sides also decided to set up dedicated sub-groups to strengthen cooperation in areas such as digital trade, supply chains, and strategic industrial collaboration.

Further, discussions were held on trade in goods, trade in services, rules of origin and origin procedures, investment, and sanitary and phytosanitary (SPS) standards. The negotiations were co-chaired by Kapil Chaudhary, Joint Secretary, Department of Commerce, and Park Geun-oh, Director General for Trade Agreement Policy, Ministry of Trade, Industry and Energy, Republic of Korea.

India's exports to Korea increased 3.31 per cent to $6 billion in 2025-26 from $5.81 billion in 2024-25. Imports grew 1.38 per cent to $21.35 billion in 2025-26 from $21 billion in 2024-25. The trade deficit widened to $15.35 billion in 2025-26, from $15.2 billion in 2024-25. The deficit stood at $14.71 billion in 2023-24, up from $14.57 billion in 2022-23 and $9.4 billion in 2021-22. The ministry said that both sides reviewed the progress achieved so far in the negotiations.

CNX Nifty touched high and low of 24,002.80 and 23,484.75, respectively. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 1.68%, HCL Technologies up by 1.44%, Wipro up by 1.25%, Nestle India up by 1.09% and Larsen & Toubro up by 1.05%. On the flip side, Power Grid Corporation down by 4.11%, Interglobe Aviation down by 3.28%, ONGC down by 3.01%, Max Healthcare Institute down by 2.86% and Eicher Motors down by 2.78% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 19.48 points or 0.19% to 10,445.44 and France’s CAC rose 70.53 points or 0.85% to 8,259.40, while Germany’s DAX lost 29.55 points or 0.12% to 25,062.70.

Asian markets settled mostly higher on Friday tracking Wall Street’s gains overnight, with Brent crude falling below $92 a barrel as geopolitical tensions eased after reports of a proposed 60-day ceasefire extension between the US and Iran as well as the possible easing of shipping restrictions through the Strait of Hormuz. Japan’s Nikkei surged above 66,000 for the first time ever led by artificial intelligence and semiconductor-related shares, and after data showed Tokyo's core inflation rate rose more slowly than expected in May. South Korea’s Kospi jumped to a new record high, driven by strong gains in artificial intelligence-related stocks on expectations surrounding CEO Nvidia Jensen Hwang's visit to Korea. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,068.57

-30.07

-0.73

Hang Seng

25,182.39

176.23

0.70

Jakarta Composite

6,127.38

-2.81

-0.05

KLSE Composite

1,683.07

-1.86

-0.11

Nikkei 225

66,329.50

1,636.38

2.53

Straits Times

5,037.86

48.67

0.98

KOSPI Composite

8,476.15

290.86

3.55

Taiwan Weighted

44,732.94

1,096.50

2.51
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