Global and Domestic markets 31 may 2026

Global and domestic financial markets are navigating major geopolitical shifts, corporate earnings wrap-ups, and key macroeconomic announcements. On Dalal Street, the NSE Nifty 50 closed down significantly at 23,547.75 (-1.50%) due to persistent foreign investor selling and inflation worries triggered by the IMD's below-normal monsoon forecast. In contrast, US stocks wrapped up the week on a positive note, with the S&P 500 closing slightly up at 7,580.06 (+0.22%), locking in its ninth straight positive week on tech strength and optimistic Middle East developments.

Indian Market & Macro Updates

Monsoon & Inflation Alarm: The IMD's prediction of a below-normal monsoon sparked food inflation fears, dragging down FMCG and power stocks significantly.

RBI Annual Report Resilience: The Reserve Bank of India projected a resilient GDP growth trajectory for FY27, though it expects retail inflation to settle around 4.6% amid geopolitical headwinds.

Windfall Tax Hike: The Government of India announced a revision of the windfall tax on fuel exports, set to take effect starting June 1.Customs Duty Waiver: To assist textile manufacturers, the Centre completely waived customs duty on cotton imports until October 31.Unclaimed Assets Portal: The government launched a centralized digital search portal to help citizens trace unclaimed financial assets across institutions.

🌎 Global & Commodities Summary

US-Iran Ceasefire Progress: Geopolitical tensions eased marginally after reports that the US and Iran are close to an agreement to extend their 60-day ceasefire.

Crude Oil Dips: Brent crude futures traded lower following progress on the US-Iran peace deal, offering a brief respite to energy-importing economies.

Gold Remains Premium: Spot gold traded steadily amid US interest rate hike concerns, but physical gold prices in India are still holding an 18% premium over global spot prices.

Corporate & Stock Specific HighlightsPB Fintech Block Deal: The founders of Policybazaar pared their stake by offloading shares worth ₹665 crore, with Goldman Sachs and domestic funds absorbing the block.

AI Rally Boosts IT: Wipro and Infosys led minor rebounds on the exchanges after massive global AI investments (including Anthropic's funding round) elevated global tech sentiment.

Adani Infrastructure Expansion: Adani Group firms finalized a capital deployment plan of ₹5,694 crore to acquire distressed assets of Jaiprakash Associates.