New Delhi: Investors’ wealth eroded by ₹5.77 lakh crore on Friday as markets fell sharply amid fears of a below-normal monsoon and geopolitical uncertainty.
Last-minute selling dragged the markets lower, with the 30-share BSE Sensex tumbling 1,092.06 points, or 1.44%, to settle at 74,775.74. During the day, it dropped 1,278.69 points, or 1.68%, to 74,589.11.
The 50-share NSE Nifty dived 359.40 points, or 1.50%, to end at 23,547.75.
The market capitalisation of BSE-listed companies declined by ₹5,77,442.84 crore to ₹4,64,97,814.78 crore ($4.88 trillion).
“The market witnessed broad-based selling pressure following the IMD’s monsoon forecasts to 90% of the long-period average (LPA), raising concerns among investors. The prospect of deficient rainfall, coupled with the increasing likelihood of an El Niño weather pattern, has heightened fears of elevated food inflation in the coming months,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
However, the downside risk appears partially mitigated by the recent moderation in crude oil prices and bond yields, he added.
The June-September southwest monsoon seasonal rainfall over India is expected to be 90% of the long-period average with a model error of 4%, the India Meteorological Department said on Friday.
While the Northeast is likely to witness normal rainfall this monsoon season, the remaining parts of the country may see below normal rainfall, the weather office said.
Among the 30-Sensex firms, InterGlobe Aviation, Power Grid, NTPC, Bajaj Finance, Mahindra & Mahindra and Tata Steel were the major laggards.
Tech Mahindra, HCL Tech, Larsen & Toubro and Infosys were the gainers.
“Markets witnessed a sharp bout of volatility in the final hour of trade on Friday, with benchmark indices erasing most of their intraday gains amid heavy selling. After a steady start, the Nifty traded within a narrow range for most of the session; however, intense selling pressure emerged during the final 30 minutes, dragging the index sharply lower before a partial recovery at the close,” Ajit Mishra-SVP, Research, Religare Broking Ltd, said.
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, he added.
The BSE SmallCap Select index tanked 1.26% and MidCap Select index dropped 0.73%.
“Geopolitical uncertainty also continued to weigh on investor confidence. Although initial optimism emerged around a possible extension of the US-Iran ceasefire arrangement, the absence of formal confirmation from Washington kept global institutional investors cautious ahead of the weekend, limiting aggressive risk-taking across equities,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
Among sectoral indices, Oil & Gas tumbled 2.75%, Metal (2.30%), Utilities (2.23%), Hospitals (2.16%), Energy (2.08%), Commodities (1.94%), Auto (1.90%) and Services (1.58%).
IT, Telecommunication and Focused IT were the gainers.
A total of 2,673 stocks declined, while 1,611 advanced and 179 remained unchanged on the BSE.