Sensex crashes 1,092 points as US-Iran uncertainty sparks late sell-off
Synopsis
The Sensex shed over 1,000 points in a single session on 29 May, with late-hour selling erasing an earlier rally that had briefly pushed the Nifty past 24,000. The twin triggers — US-Iran geopolitical uncertainty and a below-par IMD monsoon forecast — exposed just how fragile sentiment remains near higher resistance levels, even as IT stocks quietly held their ground.
Key Takeaways
BSE Sensex closed down 1,092.06 points at 74,775.74 on 29 May 2025 — a fall of 1.44% .
Nifty50 settled at 23,547.75 , declining 359.40 points or 1.50% .
Reliance Industries fell more than 2.18% and ITC dropped 1.71% , leading the heavyweights lower.
Nifty IT index bucked the trend, gaining over 0.60% on US tech tailwinds and a weaker rupee.
IMD monsoon forecast of 90% of LPA added to investor unease alongside US-Iran uncertainty.
Technical analysts flag 23,500 as a critical support; a break could push Nifty toward 23,200 .
The BSE Sensex plunged 1,092.06 points or 1.44% to close at 74,775.74 on Friday, 29 May, while the Nifty50 shed 359.40 points or 1.50% to settle at 23,547.75, as geopolitical anxiety over a possible US-Iran diplomatic understanding triggered a sharp, broad-based sell-off in the final hour of trade. The session was among the most volatile in recent weeks, with both benchmarks swinging across wide ranges before closing near intra-day lows.
How the Session Unfolded
The Nifty50 touched an intra-day high of 24,002.80 before tumbling to a low of 23,484.75 — a swing of over 518 points within a single session. The Sensex similarly climbed to 76,220.02 during the day before late-hour selling dragged it down to an intra-day low of 74,589.11. The reversal underscored what analysts described as the fragile nature of market sentiment near higher resistance levels.
Key Stocks and Sectoral Moves
Heavyweight counters amplified the damage. Shares of Reliance Industries declined more than 2.18%, while ITC fell 1.71%, collectively dragging the broader indices lower. In the mid- and small-cap space, the Nifty MidCap 100 index fell 1.33% and the Nifty SmallCap index slipped 0.85%.
Technology stocks, however, stood out as a pocket of resilience. The Nifty IT index gained more than 0.60%, supported by an overnight rally in US tech stocks and a weaker Indian rupee — a combination that typically improves export margins for IT companies.
What Triggered the Sell-Off
Analysts pointed to two converging triggers. First, uncertainty over a potential US-Iran understanding unsettled investors who had positioned for a more stable geopolitical backdrop. Second, the India Meteorological Department's (IMD) monsoon forecast — revised to 90% of the Long Period Average (LPA) — raised concerns among market participants about agricultural and rural consumption outcomes, according to analysts tracking the session.
This comes amid a broader pattern of elevated volatility near key technical resistance zones. Notably, this is the third significant intra-day reversal from the 24,000 level on the Nifty in recent sessions, reinforcing that level as a stiff ceiling for the near term.
Technical Outlook and What to Watch
Market analysts cautioned that a sustained breakdown below the 23,500 zone could weaken the near-term structure and extend downside pressure toward the 23,300–23,200 region if selling persists. On the upside, the 23,750–23,800 zone is now expected to act as an immediate resistance band, with stronger resistance near the 24,000 level, according to technical analysts.
Investors will closely watch geopolitical developments around US-Iran talks and any further IMD monsoon updates in the coming sessions, both of which could set the tone for early next week.
Point of View
000-point Sensex fall driven partly by a monsoon forecast revision deserves scrutiny — markets pricing in agricultural risk this sharply suggests underlying sentiment is far more fragile than the recent rally implied. The US-Iran narrative is a convenient headline trigger, but the real story is that the Nifty has now failed three times at 24,000, a pattern that technical traders will not ignore. IT's resilience is a structural story, not a session anomaly — rupee depreciation and US tech momentum are durable tailwinds. The divergence between IT and the rest of the market is widening, and that split will increasingly define portfolio outcomes heading into the next earnings cycle.
NationPress
5 Aug 2026
Frequently Asked Questions
Why did the Sensex crash today on 29 May 2025?
The Sensex fell 1,092 points to 74,775.74 on 29 May 2025, driven by uncertainty over a possible US-Iran diplomatic understanding and concerns raised by the IMD's monsoon forecast of 90% of the Long Period Average. Heavy late-hour selling accelerated the decline after the Nifty briefly crossed 24,000 earlier in the session.
Which stocks led the Sensex decline?
Reliance Industries fell more than 2.18% and ITC declined 1.71%, among the heaviest drags on the indices. The Nifty MidCap 100 and Nifty SmallCap indices also fell 1.33% and 0.85% respectively, indicating broad-based selling pressure.
Did any sector gain during the market crash?
Yes, IT stocks were a notable exception, with the Nifty IT index gaining over 0.60%. The sector was supported by an overnight rally in US tech stocks and a weaker Indian rupee, which tends to boost margins for export-oriented technology companies.
What are the key technical levels to watch on the Nifty?
Analysts say a sustained close below 23,500 could extend the downside toward the 23,300–23,200 zone. On the upside, the 23,750–23,800 band is now the immediate resistance, with 24,000 acting as a stronger ceiling after multiple failed breakout attempts.
How does the IMD monsoon forecast affect the stock market?
The IMD's forecast of 90% of the Long Period Average raised concerns about agricultural output and rural consumption demand, which spooked investors in sectors sensitive to domestic economic conditions. A below-normal monsoon outlook can weigh on FMCG, agri-input, and rural-focused financial stocks.
