Sensex, Nifty slide for third session amid monsoon concerns and global uncertainty

The key equity benchmarks ended sharply lower on Friday, extending losses for a third straight session. Sentiment remained weak amid rising geopolitical tensions in the Middle East and concerns over a slightly below-normal monsoon after the India Meteorological Department forecast rainfall at around 90% of the long-period average. The Nifty settled below the 23,550 mark, weighed down by losses in energy, metal and auto stocks.

Investors remained cautious as they assessed the prospects of peace in the Middle East and its potential impact on crude oil prices. Market participants are seeking greater clarity on the geopolitical front before taking fresh directional bets.

Selling pressure intensified in the final half hour of trade as the latest MSCI index rebalancing took effect. Earlier this week, MSCI announced the inclusion of Federal Bank, Multi Commodity Exchange of India (MCX), National Aluminium Company (NALCO) and Indian Bank in its Global Standard Index. At the same time, Hyundai Motor India, Jubilant FoodWorks, Kalyan Jewellers and Rail Vikas Nigam (RVNL) were removed. The changes became effective from 29 May 2026.

The S&P BSE Sensex tanked 1,092.06 points or 1.44% to 74,775.74. The Nifty 50 index slipped 359.40 points or 1.50% to 23,547.75. In the three trading sessions, the Sensex and Nifty declined 2.23% and 2.01%, respectively.

Reliance Industries (down 2.17%), HDFC Bank (down 1.86%) and ICICI Bank (down 1.28%) were major Nifty drags today.

In the broader market, the BSE 150 MidCap Index fell 1.25% and the BSE 250 SmallCap Index declined 0.61%.

The market breadth was negative. On the BSE, 1,670 shares rose and 2,599 shares fell. A total of 212 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 8.02% to 16.19.

IMD Forecast:

The forecast by the India Meteorological Department that India may receive about 90% of the long-period average rainfall this monsoon suggests a slightly below-normal season, but not a severe shortfall. This level of rainfall is likely to have a moderate impact on the economy, particularly in agriculture, where rain-fed crop output could be affected in some regions. Any uneven distribution of rainfall may lead to localized stress on farm production, which in turn could push up prices of food items such as vegetables, pulses, and cereals. Rural demand may also see some moderation if farm incomes are impacted. However, since the deviation from normal is not very large, the overall effect on GDP growth is expected to remain limited, with the economy continuing to be supported by stable services and industrial activity.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 0.04% to 6.999 compared with previous session close of 6.996.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 95.9925 compared with its close of 95.5800 during the previous trading session.

MCX Gold futures for 5 June 2026 settlement fell 0.59% to Rs 156,000.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 99.07.

The United States 10-year bond yield fell 0.09% to 4.448.

In the commodities market, Brent crude for July 2026 settlement fell 1.44 or 1.54% to $92.27 a barrel.

Global Market:

US Dow Jones futures were up 100 points, indicating a positive start for Wall Street later today.

European shares advanced on Friday as investors assessed the possibility of an extension to the fragile ceasefire between the US and Iran. Asian shares also ended higher, supported by optimism that Washington and Tehran were moving closer to a temporary agreement to halt their three-month conflict.

According to media reports, Iran's armed forces launched missiles at unspecified targets late Thursday. The development followed Pentagon claims that Tehran had fired a ballistic missile toward Kuwait and deployed attack drones in and around the Strait of Hormuz.

Despite the military activity, a White House official reportedly confirmed on Thursday that the US and Iran had mostly agreed on the terms of a deal aimed at temporarily pausing the conflict.

Overnight, Wall Street extended its gains. The S&P 500 and Nasdaq Composite closed at record highs as technology stocks led the rally and investors weighed reports of progress in US-Iran negotiations. The S&P 500 rose 0.58% to 7,563.63, while the Nasdaq Composite gained 0.91% to 26,917.47. Both indices also touched fresh intraday record highs. The Dow Jones Industrial Average edged up 0.05% to 50,668.97.

Meanwhile, US inflation data remained firm. The Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, rose 0.4% in April. Annual inflation accelerated to 3.8% from 3.5% in March, marking its highest level in three years. Core PCE inflation, which excludes food and energy prices, stood at 3.3% on a 12-month basis, slightly higher than the previous month. The data reinforced concerns that inflationary pressures remain elevated despite expectations of eventual policy easing.

Stocks in Spotlight:

Delta Corp tumbled 14.13% after the Supreme Court upheld the government's retrospective 28% GST levy on the full face value of bets placed on gaming platforms. The ruling comes as a setback for online gaming companies that had challenged the retrospective tax demand, arguing that treating online gaming as 'gambling' under GST law contradicted judicial precedents established by the Supreme Court and various High Courts over the years.

Asian Paints ended almost flat at Rs 2,688. The company reported 69.3% increase in consolidated net profit to Rs 1,172.1 crore on a 10.8% rise in net sales to Rs 9,228.5 crore in Q4 FY26 over Q4 FY25. While PBDIT improved by 24.4% YoY to Rs 1,786.6 crore, PBDIT margin expanded by 220 basis points YoY to 19.4% in Q4 FY26.

Wockhardt rose 14.70% after the company received regulatory approval for its breakthrough antibiotic Zaynich in India. The approval was granted by the Central Drugs Standard Control Organisation (CDSCO) and marks a significant milestone for the company's antibiotic research programme. Zaynich is an indigenously discovered and developed antibiotic that combines Zidebactam, a beta-lactam enhancer antibiotic, with Cefepime, a cephalosporin antibacterial drug.

Wipro rose 1.32% after the company announced an expanded partnership with ServiceNow to deploy agentic AI workflows across key enterprise functions, including IT, HR, procurement and cybersecurity.

Supriya Lifescience surged 20% after the active pharmaceutical ingredients (API) manufacturer reported strong Q4 FY26 earnings. The company's consolidated net profit rose 47.4% YoY and 49.4% QoQ to Rs 74.23 crore in Q4 FY26. Revenue from operations jumped 50.2% YoY and 34% QoQ to Rs 276.53 crore in the March 2026 quarter.

Alkem Laboratories added 0.85%. The company reported 25.11% drop in consolidated net profit to Rs 251.11 crore despite 14.62% jump in revenue from operations to Rs 3603.32 crore in Q4 March 2026 over Q4 March 2025.

PC Jeweller surged 4.35% after the company reported 58.06% jump in standalone net profit to Rs 150.33 crore on 32.66% increase in revenue from operations to Rs 927.34 crore in Q4 FY26 over Q4 FY25.

Ashapura Minechem soared 13.06% after the company's consolidated net profit jumped 31.49% to Rs 110.73 crore on a 104.97% surge in revenue from operations to Rs 1968.63 crore in Q4 FY26 over Q3 FY26.

Banco Products (India) rallied 4.86% after the company's consolidated net profit jumped 71.77% to Rs 147.43 crore in Q4 FY26, compared with Rs 85.83 crore in Q3 FY26. Revenue from operations jumped 39.56% QoQ to Rs 1,091.10 crore in Q4 FY26.

Kesoram Industries dropped 4.94% after the company reported a 99.46% decline in consolidated net profit to Rs 31.07 crore in the quarter ended 31 March 2026, compared with Rs 5,765.62 crore recorded in Q4 FY25. Revenue from operations slipped 1% year-on-year to Rs 66.62 crore in Q4 FY26.

Amines & Plasticizers fell 3.32%. The company reported 19.8% increase in consolidated net profit to Rs 15.35 crore despite a 6.4% fall in revenue to Rs 155.14 crore in Q4 FY26 as compared with Q4 FY25.

Lemon Tree Hotels fell 4.71%. The company reported an 8.09% rise in consolidated net profit to Rs 91.49 crore in Q4 FY26, compared with Rs 84.64 crore posted in the corresponding quarter last year. Revenue from operations increased 10% year-on-year to Rs 416.40 crore during the quarter ended 31 March 2026.

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