Foreign institutional investors (FIIs) remained net sellers on May 26, offloading equities worth ₹2,408 crore according to latest provisional data. In contrast, domestic institutional investors (DIIs) continued their buying support, purchasing equities worth ₹1,361 crore during the session. According to reports from Moneycontrol, this divergence in institutional flows highlights the mixed sentiment among different investor categories in the current market environment. The latest data shows overseas investors have offloaded $24.2 billion so far this year, surpassing 2025's record annual selloff.
Indian equity benchmark indices ended on a weak note on May 26, with the Sensex closing down 479.26 points or 0.63 percent at 76,009.70 and the Nifty falling 118 points or 0.49 percent at 23,913.70. As reported by Moneycontrol, the market opened on a weak note and remained volatile throughout the session, oscillating between gains and losses after reports of fresh U.S. military action dampened hopes of an early de-escalation in West Asia. The Nifty was dragged below the crucial 24,000 mark during the final hour of trading. According to Goodreturns, the weakness in heavyweight stocks dragged the Nifty below the key 24,000 mark at closing, with selling pressure witnessed in Nifty Consumer Durable, Private Bank and Realty indices. GIFT Nifty futures were at 23,890.5 as of 7:59 a.m, indicating the benchmark Nifty 50 would open near Tuesday's close of 23,913.7 points.
The domestic markets are likely to open on a muted note on Wednesday, with benchmark indices Sensex and Nifty expected to extend losses amid elevated crude oil prices and uncertainty over the ceasefire between the United States and Iran. Iran on Tuesday alleged that the US violated a ceasefire by carrying out strikes near the Strait of Hormuz, a development that could complicate efforts to end the three-month-long conflict. Meanwhile, Israel carried out more than 120 air strikes in Lebanon on Tuesday, according to Lebanese security sources, marking one of the heaviest bombardments in recent weeks. Iran has sought an end to Israeli attacks in Lebanon as part of any settlement, adding another layer of complexity to regional tensions.
According to Bajaj Broking Research, the Nifty formed a bearish candlestick pattern on the daily chart, signalling a lack of follow-through buying after Monday's sharp rally. The brokerage noted that the index slipped below the 50-day EMA after giving up part of its previous gains, but Nifty is still testing the upper band of the breakout zone formed after Monday's breakout above the 23,200-23,850 trading range. Going ahead, index sustaining above the Monday's gap area (23,835-23,922) will keep the bias positive and open further upside towards 24,200-24,300 levels in the coming sessions. The immediate support for Nifty is placed near 23,600, with major short-term support seen in the 23,200-23,000 zone.
On the sectoral front, selling pressure was witnessed in Nifty Consumer Durable, Private Bank and Realty indices, while selective buying interest emerged in Metal, FMCG and Auto stocks, according to Goodreturns. In the US, the S&P 500 gained 45.65 points or 0.61% to 7,519.12 and the Nasdaq Composite rose 312.21 points or 1.19% to 26,656.18, while the Dow Jones Industrial Average fell 118.02 points or 0.23% to 50,461.68. Global markets showed mixed performance with Asian stocks climbing to record highs driven by renewed momentum in technology shares and easing geopolitical tensions. According to Goodreturns, markets may continue to remain sensitive to geopolitical headlines and crude oil movement, with concerns over prolonged supply disruptions and delays in normalising shipping flows through the Strait of Hormuz keeping energy markets highly sensitive to every geopolitical development. Brent crude hovered around $99 a barrel, while Japan's Nikkei hit a record high on AI optimism.
