Benchmarks End Lower, Post Monthly Losses Amid US-Iran Uncertainty

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

India Stocks fall

By Dehuti Jani

May 29, 2026 at 11:43 AM IST

Indian equity benchmarks Indian equity benchmarks declined sharply on Friday and ended May in negative territory as uncertainty surrounding a possible US-Iran peace agreement triggered profit booking after April’s strong market rebound. The Nifty50 fell 1.50% or 359.40 points to close at 23,547.75, while the BSE Sensex dropped 1.44% or 1,092.06 points to settle at 74,775.74.

Investor sentiment remained cautious despite a sharp monthly decline in Brent Crude prices during May, as oil remained significantly above pre-conflict levels linked to tensions in West Asia. Analysts said elevated crude prices and limited participation in the global AI-led technology rally continued to keep foreign investors cautious on Indian equities.

Sectorally, metal and oil & gas stocks were among the worst performers, while selective IT shares showed resilience. Power Grid Corporation of India, InterGlobe Aviation, Bajaj Finance and UltraTech Cement were among the top losers, while Tech Mahindra, HCL Technologies and Larsen & Toubro ended in positive territory.

Broader markets also weakened during the session, with the Nifty MidCap 100 declining 1.33% and the Nifty SmallCap 100 falling 0.85%, although both indices outperformed the benchmark indices monthly supported by earnings optimism.

Top Movers of the Day
Power Grid Corporation of India dropped just over 4% to around ₹288 as investors aggressively booked profits in utilities, with the stock emerging as the top Nifty 50 loser amid broad-based risk‑off selling.

InterGlobe Aviation (IndiGo) fell about 3.3% to roughly ₹4,420 as aviation stocks came under pressure in the late‑session sell‑off, with worries over fuel costs and weaker risk appetite dragging the counter lower.

Bajaj Finance declined around 2.3% to about ₹909 as financials bore the brunt of foreign selling and monsoon‑linked growth concerns, adding to recent volatility in rate‑sensitive lenders and NBFCs.

UltraTech Cement slipped roughly 1.6% to near ₹11,501 as fears of below‑normal monsoon rains and potential demand softness weighed on cement names despite an otherwise resilient earnings backdrop.

Tata Steel lost about 2.1% to ₹210, extending weakness in metal stocks as the market priced in global growth worries and lingering uncertainty around the US–Iran peace process and its impact on commodities.

Sun Pharmaceutical Industries eased just over 2% to about ₹1,803 as profit‑taking emerged in recent defensives, even though healthcare remained more resilient than cyclicals earlier in the week.

Reliance Industries fell nearly 2% to around ₹1,321.9, contributing meaningfully to the Sensex and Nifty slide as energy and oil‑linked counters tracked the risk‑off move and concerns around global crude demand.

Tech Mahindra rose nearly 1.6% to around ₹1,480, extending its recent outperformance as the market rewarded IT names leveraged to digital transformation and AI, even on a day of heavy index‑level selling.

HCL Technologies added about 1.4% to roughly ₹1,182, helping the Nifty IT index close in the green and underscoring the sector’s defensive appeal in a session dominated by macro and monsoon worries.

Larsen & Toubro advanced around 1.1% to about ₹4,090 as stable order inflows and visibility on infrastructure capex kept the engineering major among the few Sensex constituents to end firmly positive.

Relaxo Footwears jumped roughly 12% to around ₹339 after a strong intraday rally, with traders betting on margin recovery and improved discretionary demand in the footwear segment despite broader market weakness.

Delta Corp slumped about 16% to nearly ₹68, extending a sharp two‑day slide as gaming stocks faced heavy selling amid regulatory overhang and profit‑taking after a recent run‑up.

Futures & Options
Nifty June 2026 futures closed at 23,740, a premium of 192.25 points over the spot Nifty 50 close of 23,547.75, indicating that traders remained bullish rollover positioning despite the sharp correction in the cash market. In the cash market, the Nifty 50 tumbled 359.40 points or 1.50%, while volatility surged with India VIX jumping 8.02% to 16.19 amid uncertainty surrounding the US-Iran ceasefire and global risk sentiment.

Among stock futures, HDFC Bank, Infosys and Coal India were the most actively traded contracts in the F&O segment of the NSE. The June 2026 derivatives series will expire on 30 June 2026.

Bonds
India’s government bond yields remained largely steady on Friday as softer US Treasury yields and falling oil prices supported sentiment, although gains were capped by fresh sovereign debt supply through the weekly auction. The benchmark 6.48% 2035 government bond yield ended at 7.0037%, compared with Wednesday’s close of 6.9960%. Indian financial markets were shut on Thursday for a local holiday.

Bond markets initially strengthened after reports that the US and Iran had agreed to extend their ceasefire for another 60 days, which pushed Brent Crude prices lower toward $92.7 per barrel and eased near-term imported inflation concerns for India.

However, gains in government securities were limited by supply pressure from the Reserve Bank of India’s weekly debt auction, where New Delhi raised ₹280 billion through the reissuance of long-dated securities. The auction included ₹170 billion of the 6.68% GS 2040 bond and ₹110 billion of the 7.43% GS 2076 paper.

Forex
Indian rupee strengthened sharply on Friday, recording its best single-day gain in nearly two months as likely intervention by the RBI combined with a sharp decline in oil prices to support the currency. The rupee closed at 95 against the US dollar, gaining 0.7% on the day and posting its strongest performance since April 2. The currency also ended broadly flat for the month after recovering from recent record lows.

Traders said likely dollar-selling intervention by the Reserve Bank of India helped reverse early weakness in the currency, while falling Brent Crude prices added further support.

Crypto
Crypto markets stabilised on Friday after recent losses, with total market value rising 0.8% overnight to above $2.56 trillion. Bitcoin traded at $73,400-$73,500, up slightly over 24 hours after falling more than 5% this week. Despite pulling back from this month’s $77,700 high, it still held a market value above $1.47 trillion.

Ethereum traded near $2,010, just above key $2,000 support, and rose about 0.8%. Traders still flagged weak momentum, while attention remained on a large investor’s new $13 million leveraged bet despite losses above $33 million.

US Stock Futures
US stock futures traded modestly higher on Friday as investors monitored developments surrounding the fragile ceasefire between the US and Iran, while falling oil prices supported broader market sentiment. Futures linked to the S&P 500 and Nasdaq-100 gained around 0.1%, while futures tied to the Dow Jones Industrial Average rose roughly 0.2%.

Energy markets remained volatile, with West Texas Intermediate crude declining more than 2% to around $86.9 per barrel, while Brent Crude slipped about 2% toward $91.8 per barrel.

US Treasury Notes
US Treasury yields were largely unchanged on Friday as investors monitored developments in West Asia and assessed easing inflation concerns following a decline in oil prices. The benchmark 10-year Treasury yield hovered near 4.45%, remaining well below the 16-month highs near 4.70% reached earlier this month. Meanwhile, the policy-sensitive 2-year Treasury yield held steady around 4.02%.

Bond market sentiment stabilised after reports suggested that Washington and Tehran were nearing an interim 60-day ceasefire agreement, which helped pull Brent Crude prices lower and reduced immediate concerns around energy-driven inflation.

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