Market Close Report, May 29, 2026: Below-Normal Monsoon Casts Shadow on Sensex; Markets Decline For 3rd Day

Mumbai, May 29: Benchmark stock index Sensex tumbled 1 092 points and Nifty closed below 24 550 on Friday amid reports of a below-normal monsoon season rainfall and geopolitical uncertainty related to the US-Iran ceasefire arrangement.

Dragged by a late-minute selling rush the 30-share BSE Sensex tumbled 1 092.06 points or 1.44 per cent to settle at 74 775.74. During the day it dropped 1 278.69 points or 1.68 per cent to 74 589.11.

Falling for the third consecutive session, the 50-share NSE Nifty dived 359.40 points or 1.50 per cent to end at 23 547.75.

Among 30 Sensex firms, Power Grid, InterGlobe Aviation, NTPC, Mahindra & Mahindra,  Tata Steel and Bajaj Finance were the major laggards.

Tech Mahindra, HCL Tech, Larsen Toubro and Infosys were the gainers.

IMD Forecasts Below Normal Monsoon

The June-September southwest monsoon rainfall over India is expected to be 90 per cent of the long-period average with a model error of 4 per cent, the India Meteorological Department said on Friday.

While the Northeast is likely to witness normal rainfall this monsoon season, the remaining parts of the country may see below normal rainfall, the weather office said. LPA refers to the rainfall recorded over a particular region for a given interval such as a month or season averaged over a long period of time typically 30 to 50 years.

The market witnessed broad-based selling pressure following the IMD s monsoon forecasts to 90 per cent of the long-period average raising concerns among investors. The prospect of deficient rainfall coupled with the increasing likelihood of an El Niño weather pattern has heightened fears of elevated food inflation in the coming month, Vinod Nair, Head of Research, Geojit Investments Limited said.

However the downside risk appears partially mitigated by the recent moderation in crude oil prices and bond yields, he said.

Brent crude the global oil benchmark dropped 1.52 per cent to USD 92.29 per barrel.

Geopolitical Uncertainty

Geopolitical uncertainty also continued to weigh on investor confidence. Although initial optimism emerged around a possible extension of the US-Iran ceasefire arrangement the absence of formal confirmation from Washington kept global institutional investors cautious ahead of the weekend limiting aggressive risk-taking across equities, Hariprasad K Research, Analyst and Founder, Livelong Wealth said.

In Asian markets South Korea s benchmark Kospi Japan s Nikkei 225 index and Hong Kong s Hang Seng index ended higher while Shanghai s SSE Composite index settled lower.

Markets in Europe were trading in positive territory. US markets ended higher on Thursday.

Stock markets were closed on Thursday for Eid-ul-Azha.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1 042.70 crore on Wednesday according to exchange data.

On Wednesday the Sensex declined 141.90 points or 0.19 per cent to settle at 75 867.80. The Nifty skidded 6.55 points or 0.03 per cent to end at 23 907.15.