HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Last day sell-off drag markets lower for the week amid conflicting geopolitical signals
May-29-2026

Indian markets ended holiday shortened week in red due to sell-off in last trading session of the week as investors remained cautious amid conflicting geopolitical signals from West Asia and foreign fund outflows. Also, the IMD revised forecast for 2026 southwest monsoon downward. Traders remained on sidelines ahead of major macro-economic data and RBI policy decision in next week. 

Some of the major developments during the week are:

Southwest monsoon seasonal rainfall over India likely to be 90% of LPA: The India Meteorological Department (IMD) has said that June-September 2026 southwest monsoon seasonal rainfall over India is expected to be 90% of the LPA with a model error of 4%, lower from the 92% of LPA forecast by IMD in April.

Moody's flags high energy prices could weigh on near-term credit conditions of Indian corporates: Moody's Ratings in its latest report has said that elevated global energy prices triggered by the ongoing West Asia conflict, are expected to weigh on the near-term credit conditions of Indian corporates.

RBI declares dividend of Rs 2.87 lakh crore to government for FY26: Providing relief to the exchequer amid higher import expenses and supply disruptions linked to the West Asia conflict, the RBI has declared a record dividend of Rs 2.87 lakh crore to the government for the FY26.

India better positioned to manage retail inflation: The ASSOCHAM has said that India is better positioned to manage retail inflation among world's ten largest economies, even as the ongoing conflict in West Asia continues to generate uncertainty around energy prices and supply chains.

India, US sign framework to secure critical mineral supplies: India and the US have firmed up a key framework for cooperation in ensuring steady supplies of critical minerals, amid increasing concerns about China’s controls on rare earth exports and strategic metals vital to global technology supply chains.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex slipped 639.61 points or 0.85% to 74,775.74 during the week ended May 29, 2026. On the sectoral front, S&P BSE Fast Moving Consumer Goods was down by 286.31 points or 1.54% to 18,264.66, S&P BSE Oil & Gas was down by 382.85 points or 1.41% to 26,741.03, and S&P BSE Healthcare was down by 461.11 points or 0.98% to 46,806.42 were the top losers, S&P BSE Power was up by 301.30 points or 3.73% to 8,383.10, S&P BSE Capital Goods was up by 2,501.83 points or 3.19% to 80,818.74 and S&P BSE Auto was up by 692.97 points or 1.21% to 57,983.39 were the top gainers on the BSE sectoral front.

NSE movement for the week

The Nifty slipped 171.55 points or 0.72% to 23,547.75. On the National Stock Exchange (NSE), Nifty Next 50 gained 1290.60 points or 1.85% to 71,073.65, Nifty IT was up by 167.70 points or 0.58% to 29,080.15, Nifty Mid Cap 100 increased 334.50 points or 0.54% to 61,723.80 and Bank Nifty was up by 183.85 points or 0.34% to 54,239.20.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 52,591.90 crore and gross sales of Rs 55,181.20 crore, leading to a net outflow of Rs 2,589.30 crore. They also stood as net sellers in the debt segment with gross purchases of Rs 6,235.61 crore against gross sales of Rs 8,041.61 crore, resulting in a net outflow of Rs 1,806.00 crore. In hybrid segment, FIIs stood as net sellers, with gross purchases of Rs 71.49 crore and gross sales of Rs 123.06 crore, leading to a net outflow of Rs 51.57 crore.

Industry and Economy

Expressing optimism about India’s exports growth prospects, Commerce and Industry Minister Piyush Goyal has said that the country’s exports recorded healthy growth during the first three weeks of May. He also said that while the world is going through a turmoil, India is relentlessly rising on global stage as it is recording health growth in exports and foreign direct investment (FDI). Exports rose by 13.78% to $43.56 billion in April, the highest monthly outbound shipments in more than four years, driven by petroleum products amid a surge in crude oil prices, but trade deficit widened to a three-month high of $28.38 billion due to an uptick in imports. For May, the commerce ministry will officially release the export and import data on June 15.

Outlook for the coming week

Indian equity benchmarks ended lower in the passing week amid broad-based selling pressure across sectors.

In the coming week, all eyes will be on the Reserve Bank of India’s (RBI’s) upcoming monetary policy meeting outcome on June 05. On the economic data front, HSBC Manufacturing PMI Final and Industrial Production data are going to be out on June 01, HSBC Services and Composite PMI Final will be released on June 03, and GDP Growth Rate and Foreign Exchange Reserves data are set to be announced on June 05.

Besides, the US team is likely to visit India from June 1-4, 2026, to finalise the details of the interim trade agreement and take forward negotiations under the broader bilateral trade agreement (BTA) on various areas.

On the global front, investors would be eyeing few economic data from world’s largest economy, United States (US), starting with S&P Global Manufacturing PMI Final and ISM Manufacturing PMI on June 01, followed by Redbook and JOLTs Job Openings on June 02, API Crude Oil Stock, S&P Global Services PMI Final, ISM Services PMI and EIA Crude Oil Stocks on June 03, Initial Jobless Claims on June 04, Unemployment Rate and Baker Hughes Oil Rig Count on June 05.

Top Gainers 

  • Tata Motors Passenger Vehicles (TMPV) up by 9.04% was the top gainer on Nifty for the week - TMPV caught investors’ attention after the company launched the Next Gen Tiago and Tiago.ev. The new Tiago is available across Petrol, iCNG, and Electric powertrains and priced from just Rs 4.69 lakh for the ICE version and Rs 6.99 lakh for the electric version.
  • Adani Enterprises up by 8.60% was another top gainer on Nifty for the week - Adani Enterprises traded higher along with other Adani group companies after U.S. Treasury Department settled a case against Adani Enterprises. Under this settlement, the company will pay $275 million to U.S. Department of the Treasury's Office of Foreign Assets Control.

Top Losers 

  • Oil & Natural Gas Corporation (ONGC) down by 11.03% was the top loser of the week on Nifty - ONGC came under pressure after its fourth quarter result failed to match street’s expectations. The company has reported 45.60% rise in its consolidated net profit at Rs 10,819.65 crore for Q4FY26 as compared to Rs 7,431.14 crore for the same quarter in the previous year.
  • Max Healthcare Institute down by 10.28% was another top loser of the week on Nifty - Max Healthcare traded lower after its Q4 numbers fell short to match investors’ expectations. The company has reported 7.28% rise in its consolidated net profit at Rs 342.22 crore for Q4FY26 as compared to Rs 319.00 crore for the same quarter in the previous year.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 24,089.80 on May 26 and lowest level of 23,484.75 on May 29. On the last trading day, the Nifty closed at 23,547.75 with weekly loss of 171.55 points or 0.72 percent. For the coming week, 23,325.07 followed by 23,102.38 are likely to be good support levels for the Nifty, while the index may face resistance at 23,930.12 and further at 24,312.48 levels.

US Market

The U.S. markets traded higher during the week as traders were optimistic with a private report stating that U.S. and Iran have reached a preliminary memorandum of understanding to extend the ceasefire between the two countries for 60 days.

Some of the major developments during the week are:  

U.S. new home sales pull back sharply in April: New home sales plunged by 6.2 percent to an annual rate of 622,000 in April after surging by 3.4 percent to a revised rate of 663,000 in March.

Durable goods orders in U.S. spike in April: Durable goods orders spiked by 7.9 percent in April after jumping by an upwardly revised 1.3 percent in March.

Weekly jobless claims in U.S. rise in week ended May 23: Initial jobless claims climbed to 215,000, an increase of 5,000 from the previous week's revised level of 210,000. 

U.S. leading economic index inches higher in April: The Conference Board said its leading economic index crept up by 0.1 percent in April after falling by 0.6 percent. 

Consumer confidence in U.S. edges modestly lower in May: The Conference Board said its consumer confidence index dipped to 93.1 in May from an upwardly revised 93.8 in April.

European Market

European markets remained firm during the passing week, amid reports the U.S. and Iran have agreed to extend their ceasefire by sixty days.

Some of the major developments during the week are:

Eurozone economic confidence rises unexpectedly: The economic sentiment index rose to 93.5 in May from 93.2 in the previous month. The score was expected to fall to 92.8.

Italy consumer confidence rises in May: Consumer sentiment rose to a 3-month high of 93.4 in May from 90.8 in the previous month. However, a score below 100 indicates a pessimistic outlook. 

Austria manufacturing activity expands: The UniCredit Bank Austria manufacturing Purchasing Managers' Index rose to 51.7 in May from 51.2 in the previous month. 

French consumer confidence weakest since early 2023: The consumer sentiment index dropped more-than-expected to 82 in May from 84 in the previous month. This was the lowest since March 2023.

Hungary Central Bank holds interest rates steady as expected: The Monetary Council decided to hold the central bank base rate steady at 6.25 percent and the deposit interest rate at 5.25 percent.

Asian Market

Asian markets traded mostly in red during the passing week, even as reports suggested that the U.S. and Iran have reached a temporary agreement to extend their ceasefire by 60 days, and begin negotiations over Tehran's nuclear program.

Some of the major developments during the week are:

Japan consumer confidence rises in May: Japan's consumer confidence index rose to 33.6 in May 2026 from 32.2 in the previous month, beating market forecasts of 32.0 and marking the highest reading since February.

Japan industrial output up 0.8 percent in April: Industrial production in Japan was up a seasonally adjusted 0.8 percent on month in April. That beat forecasts for a decline of 0.4 percent.

Japan producer prices rise in April: Producer prices in Japan were up 3.0 percent on year in April, beneath expectations for 3.3 percent, which would have been unchanged from the March reading.

South Korea industrial output falls in April: South Korea’s industrial production fell by 0.7 percent month-on-month in April 2026, from an upwardly revised 0.6 percent increase in the previous month.   

Hong Kong trade deficit widens in April: Hong Kong’s trade deficit widened to $29.5 billion in April 2026 from $16 billion in the same month a year earlier, though it remained the smallest gap since January.
  RELATED NEWS >>
Most Viewed >>
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.