Overview
- Benchmarks ended sharply lower on Friday May 29 when the Sensex fell about 1,092 points to 74,775.74 and the Nifty closed at 23,547.75 after a steep late‑session sell‑off.
- The decline accelerated when MSCI’s May 2026 Global Standard index rebalancing forced index‑tracking funds to trade concentrated orders at the close, producing large simultaneous buys and sells that amplified price moves.
- Foreign portfolio investors recorded very large net sales during the session, reported at roughly Rs 21,106 crore, while domestic institutions absorbed some flows but could not fully offset the pressure.
- The India Meteorological Department’s revised monsoon forecast of about 90% of long‑period average raised fears of higher food inflation and helped broaden losses across oil & gas, metals, autos and financials as India VIX jumped near 16.35.
- Traders said near‑term direction will depend on the RBI monetary policy meeting on June 3–5 and fresh data on GDP, PMI and industrial production together with crude oil moves and any confirmation of US–Iran diplomatic developments.