Blitz Bureau
NEW DELHI: Indian benchmark indices witnessed a dramatic crash in the final hour of trade on May 29, with the BSE Sensex plunging 1,092.06 points to settle at 74,775.74 and the NSE Nifty dropping 359.40 points to close at 23,547.75.
The benchmarks had traded in positive territory for much of the session, buoyed by easing concerns over tensions in the Middle East and strength in select technology stocks. However, sentiment reversed sharply after 3 pm, triggering a broad-based sell-off that erased earlier gains and dragged both indices to their day’s lows by the closing bell.
Market participants attributed the late slump to a combination of profit-booking, persistent foreign fund outflows, uncertainty surrounding global geopolitical developments and concerns over the impact of below-normal monsoon rainfall on the economy and inflation.
Selling pressure was visible across most sectors, with financial, metal and FMCG stocks among the biggest losers. Information technology shares offered some support during the day but were unable to prevent the sharp decline in headline indices.
The steep fall in the final hour also reflected heightened investor caution, with traders reducing risk exposure ahead of key global developments and fresh domestic triggers. Volatility spiked as selling intensified across large-cap counters.
The sharp decline marked one of the biggest single-day falls for the benchmarks in recent weeks, underscoring the fragile sentiment prevailing in the market despite positive global cues earlier in the session. Investors will now closely monitor foreign institutional investor activity, crude oil prices, geopolitical developments and domestic macroeconomic indicators for further direction in the coming sessions.
