Sensex slips 479 pts as Nifty dips below 24,000 on expiry

Market closes lower after previous session’s rally

Indian equity benchmarks ended May 26 on a weak note after a sharp rally in the previous session, with volatility rising through the day. Fresh geopolitical concerns linked to the Middle East, along with the monthly F&O expiry, shaped trading sentiment. The session began on a subdued footing and stayed choppy, with indices swinging between gains and losses.

The decisive move came in the final hour, when intensified selling pressure pulled the Nifty below the 24,000 mark at the close. While frontline indices ended lower, broader markets showed relative resilience, with midcaps and smallcaps outperforming.

What drove the day’s volatility

The market’s intraday swings were linked to renewed uncertainty after reports of fresh U.S. military action, which dampened hopes of an early de-escalation in West Asia. Against that backdrop, expiry-day positioning added to sharp moves in both directions.

Traders also appeared cautious at higher levels, with buying participation described as weak on the expiry day. As the session progressed, the benchmarks surrendered early stability and drifted lower, before the late sell-off deepened losses.

Closing numbers: Sensex, Nifty, Bank Nifty

At the close, the Sensex fell 479.26 points, or 0.63%, to 76,009.70. The Nifty declined 118 points, or 0.49%, to 23,913.70, ending below 24,000. Bank Nifty also ended in the red.

Broader market outperforms benchmarks

Despite the fall in headline indices, broader indices ended higher. The Nifty Midcap index rose 0.5% and the Nifty Smallcap index gained 0.35%. The divergence suggested stronger market breadth away from the large-cap heavyweights, even as expiry-day volatility affected benchmark movement.

The session also saw wide participation in stock-specific action, including sharp moves linked to company earnings and business updates.

Sector check: Metals and FMCG resist the decline

Sectorally, the market finished mostly lower. With the exception of FMCG and metal, other indices ended in the red. PSU Bank, private Bank, realty and consumer durables were down 0.5% to 1%.

Metal stood out as the best-performing sector, while PSU Bank was the worst-performing sector among those listed.

Top Nifty movers: key gainers and losers

On the Nifty, Apollo Hospitals, Bharti Airtel, TCS, Wipro and Trent were among the biggest losers. On the gainers list, Adani Enterprises, Tata Motors Passenger Vehicles, Tech Mahindra, Nestle and Eternal were among the leaders.

Adani Enterprises was highlighted as the biggest gainer, rising 4.20% to 2,969.30, while Apollo Hospitals was the biggest loser, down 1.73% to 8,258.50.

Rupee snaps three-day winning streak

In currency markets, the Indian rupee ended 45 paise lower at 95.68 per US dollar, snapping a three-day winning run. The previous close was 95.23 per dollar. The weaker close aligned with the broader risk-off tone during the session.

Stock-specific action: earnings and order updates

Several individual stocks saw sharp moves on results and updates. Rail Vikas Nigam shares slipped 4% after the company reported a 58.9% year-on-year decline in consolidated net profit. Man Industries (India) fell 1.4% after posting a 25.4% fall in consolidated Q4 profit.

Suprajit Engineering surged 6% on robust Q4 results. Container Corporation of India declined 7% after reporting a 12% profit drop. Awfis Space Solutions was down 2% despite strong earnings performance.

Balu Forge Industries advanced 7% after securing its maiden aerospace sector order from a U.S.-based firm. Venus Pipes & Tubes rose 1% after commencing commercial operations at its fittings manufacturing facility.

52-week highs: nearly 140 stocks hit new peaks

The session also featured strength in pockets of the market, with nearly 140 stocks touching their 52-week high on the BSE. The list included Adani Power, Adani Energy, Lloyds Metals, Granules India, Adani Enterprises, Schneider Infra, HFCL, Angel One, Vodafone Idea, Navin Fluorine and Polycab, among others.

Outlook for May 27: levels to track and technical setup

Osho Krishan, Chief Manager - Technical & Derivative Research at Angle One, said the indices opened subdued and saw a brief recovery early, but weak participation at elevated levels on expiry day and geopolitical concerns weighed on sentiment. He noted that Nifty closed near the 23,900 zone and said the broader market showed resilience despite benchmark volatility. He added that Nifty continues to trade between its 20-day and 50-day EMA levels and that a positive crossover in the MACD histogram reflects sustained bullish momentum.

On levels, Krishan highlighted 23,800-23,700 as a cushioning zone, followed by support near 23,600. He flagged 24,000-24,050 as a hurdle, and said a sustained move above that zone could open room towards 24,300-24,350.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said Nifty hit an intraday high of 24,090 before profit booking pulled it down to around 23,914, ending 0.49% lower. He noted a small-bodied bearish candle with an upper wick, pointing to profit booking at higher levels. Shah also said the index failed to sustain above its 50-day EMA after closing above it in the previous session, and that RSI saw a downtick after the prior day’s breakout.

Key technical levels mentioned by analysts

What the day means for investors

The May 26 session showed how quickly sentiment can shift when geopolitical headlines and derivatives expiry coincide. The headline indices reflected late selling pressure, but broader indices holding in positive territory and a large list of 52-week highs suggested buying interest in select names.

For the near term, traders are likely to watch the 24,000 area on Nifty closely, as analysts flagged nearby resistance zones and multiple support bands just below current levels. Global developments were repeatedly cited as key catalysts likely to influence direction amid continuing volatility.

Conclusion

Indian markets ended lower on May 26, with Sensex down 0.63% and Nifty down 0.49% as expiry-day volatility and renewed Middle East tensions drove late selling. Midcaps and smallcaps outperformed, while the rupee weakened to 95.68 per US dollar. For May 27, market participants are expected to track the support and resistance zones highlighted by analysts, alongside global headlines.