Last hour selloff drags Nifty significantly lower on Friday

Indian equity benchmark -- Nifty ended sharply lower with cut of one and half percent on Friday amid ongoing geopolitical jitters. Index made a flat-to-negative start following mixed cues from other Asian markets. But soon, index turned volatile and wavered near neutral line as market participants avoided risky bids ahead of major macro-economic data as well as RBI policy decision in the next week. Besides, some cautiousness came with continued foreign fund outflow. As per exchange data, foreign institutional investors (FIIs) sold shares worth Rs 1,042.70 crore in the Indian equity market on May 27, 2026. In afternoon session, index extended its losses as traders were cautious after the India Meteorological Department’s (IMD) revised forecast for the 2026 southwest monsoon downward, predicting that India will receive only 90% of the Long Period Average (LPA) rainfall, placing the season firmly in the below normal category. This marks a further downgrade from the IMD's April projection of 92% of LPA. In last hour of the trade, index witnessed sharp selloff and ended end below 23,550 mark.