Stock Market Plunges: Sensex Falls 1,100 Points, Nifty 50 Drops Below 23,550

Indian Stock Market Plunges Sharply on Friday, 29 May

The Indian domestic stock market benchmarks, the Sensex and the Nifty 50, experienced a sudden and sharp decline on Friday, 29 May. The benchmark indices had traded in a narrow range for most of the session, amidst persistent uncertainty surrounding a potential US-Iran deal. However, at the end of the trade session, the markets witnessed a sharp sell-off, with the Sensex plummeting nearly 1,300 points and the Nifty 50 slipping to 23,485.

Market Performance

The 30-share pack Sensex ended the day 1,092 points, or 1.44%, lower at 74,775.74, while its NSE counterpart Nifty 50 settled at 23,547.75, down 359 points, or 1.50%. The broader markets also witnessed profit booking, with the BSE 150 Midcap index losing 1.25% and the 250 Smallcap index dropping 0.61%. The overall market capitalisation of BSE-listed firms dropped to below ₹466 lakh crore from nearly ₹471 lakh crore in the previous session, resulting in investors losing ₹5 lakh crore in a single session.

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The sudden market decline can largely be attributed to aggressive profit-taking ahead of the weekend, as reports suggest a US-Iran deal is awaiting President Donald Trump's approval. According to Reuters, citing sources, both countries reached an agreement on Thursday to extend their ceasefire and reopen shipping through the critical Strait of Hormuz. This development has led to a significant downturn in the Indian stock market, with investors witnessing substantial losses.