Bengaluru, May 28, 2026, 12:53 (IST)
Indian stocks took a holiday on Thursday for Bakri Id, with both the National Stock Exchange and BSE closed. In offshore action, Gift Nifty futures pointed to a softer start ahead of Friday trading, falling 0.79% to 23,655.50 at 12:34 p.m. IST. Traders follow the futures as an early read on the Nifty 50.
India’s cash market slowed as traders watched two new risks: a sharp rise in Brent crude, up 3.6% to $97.71, and tension between the U.S. and Iran. Asian shares dropped after the U.S. hit an Iranian drone site and Tehran answered back. That pushed back hopes for a fast deal on the Strait of Hormuz.
Nifty 50, Sensex finish flat, markets show little move
The Nifty 50 closed down 0.03% at 23,907.15, while the Sensex dropped 0.19% to 75,867.8 on Wednesday. Both benchmarks ended nearly unchanged.
Nifty and Sensex managed to post about a 0.3% gain last week, led by IT and financials. The Nifty also finished the week above its 50-day moving average, a level it hadn’t cleared in two weeks. Still, the benchmarks have slid 5.8% and 7.2% since the Iran war started.
HDFC Bank dropped 2.6% Wednesday after a report on payment practices related to large deposits, though the bank denied any misconduct. Metal stocks gained 1.7%, with Hindalco and Nalco out front as aluminium prices hit their highest since early 2020 on worries over supply. The rebound stayed thin.
Taiwan has now passed India to rank as the world’s fifth-largest stock market by market cap, getting a lift from Taiwan Semiconductor Manufacturing Co and demand for AI shares. South Korea is also attracting flows, with investors buying chip stocks. VK Vijayakumar, chief investment strategist at Geojit Investments, said India will likely remain “on the back foot” as this trend and foreign portfolio investor selling drag on; FPIs are overseas funds trading Indian securities. Reuters
India’s stock market has seen foreign investors pull out over $23 billion so far in 2026, according to a Reuters poll. The outflows set up the market for what could be its first yearly drop since 2015, if predictions are accurate. “The returns are not there,” Rajat Agarwal, Asia equity strategist at Societe Generale, said, citing lackluster earnings growth and India’s narrow link to the AI-driven rally seen elsewhere. Reuters
The market is watching if Friday’s open shakes off the futures pressure or takes a bigger hit. Systematix puts the Nifty range for the June series at 23,000 to 25,000. Axis Direct has it between 23,000 and 24,500, pointing to 24,000 as the pivot. Rollover activity—moving futures and options bets into the next contract—was high across the market, even as Nifty and Bank Nifty momentum slipped.
Brokerages see June shaping up as a stock pickers’ market rather than a play on the index. Metals, pharma and power stocks are seeing some accumulation. IT might bounce if short sellers are forced to cover.
The risk is oil jumps back before local buyers can adjust. Madison Cartwright, senior geo-economics analyst at CBA, said there’s a 70% chance of a new ceasefire but called the strait’s outlook “up in the air.” Kranthi Bathini, director of equity strategy at Wealthmills Securities, said the rally last week won’t last unless there’s a clear U.S.-Iran diplomatic signal and crude drops well below $100. Reuters
India’s market takes a single day off, but not a reset. How stocks trade in the first 30 minutes on Friday will signal if Thursday just paused the selling or if investors used the break to rethink oil, the rupee, and foreign outflows ahead of the June series start.
