BT Closing Bell | Sensex plunges 1,092 pts, Nifty breaks below 23,550 on fag-end selling – Here’s why

Domestic equity benchmarks BSE Sensex and NSE Nifty extended their losses, closing lower for the third consecutive session on Friday, dragged down by selling pressure in oil & gas, energy, metal stocks and MSCI adjustments amid uncertainty around the fragile US-Iran peace talks.

Selling pressure intensified in the final hour of trade, dragging the Sensex plunged 1092.06 points, or 1.44%, to close at 74,775.74. The Nifty also ended sharply lower, falling 359.40 points, or 1.50%, to settle at 23,547.75.

Top gainers & losers

Among Sensex constituents, Power Grid emerged as the top loser, falling 3.46% to Rs 289.75. InterGlobe Aviation (IndiGo) followed with a 3.27% slide, while NTPC, Mahindra & Mahindra (M&M), Tata Steel and Bajaj Finance dropped 2.86%, 2.72%, 2.72% and 2.68%, respectively.  

While stocks such as Tech Mahindra, HCL Technologies and Larsen & Toubro (L&T) were among the gainers on the 30-pack index, they advanced up to 1.96%.    

“The downside risk appears partially mitigated by the recent moderation in crude oil prices and bond yields. Additionally, global sentiment remains supported by expectations of a potential diplomatic breakthrough between the US and Iran, which has contributed to a rally in international markets,” said Vinod Nair, Head of Research, Geojit Investments Ltd.

“In the near term, investor attention is expected to shift toward key domestic triggers, particularly the upcoming RBI monetary policy decision and GDP data release, which will provide further insights into the inflation trajectory and overall economic momentum," Nair said.

Five stocks, namely HDFC Bank, Reliance Industries, ICICI Bank, M&M and Bajaj Finance, contributed largely to the Sensex’s fall.  

“On the daily chart, Nifty once again failed to close above its 50-day EMA and formed a sizeable bearish candle with a noticeable upper wick, highlighting the Index’s inability to sustain at higher levels. Notably, this marks the third consecutive session where the Index has formed a pronounced upper wick, indicating persistent profit booking at higher levels,” said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.

Key reasons behind the market fall

MSCI adjustments: The domestic benchmarks came underpressure as investors reacted to the MSCI rebalancing exercise taking effect today. “The sudden spike in volatility was largely attributed to the MSCI May 2026 index rebalancing, which triggered heavy passive institutional flows during the closing session,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Selling pressure in oil & gas, metal and energy stocks: Among sectoral indices, the BSE Oil & Gas Index declined 2.75% to end at 26,741.03, while the BSE Energy index dropped 2.08% to settle at 11,492.07 and BSE Metal slipped 2.30% to end at 43,765.78.

Weakness in heavywieights:  “Additionally, weakness in heavyweight stocks such as Reliance and ITC, along with sustained pressure in banking majors including HDFC Bank and ICICI Bank, further intensified the decline,” Mishra said.

Geopolitical uncertainty: “Indian equity markets ended the session on a weaker note as uncertainty surrounding a potential U.S.–Iran agreement and the pending extension of the ceasefire weighed on investor sentiment, said Ponmudi R, CEO of Enrich Money.

Technical factor: “Technically, the sharp fall in the Nifty has weakened the near-term structure, with the index once again inching toward its recent swing low near the 23,250 level,” Mishra added.