Benchmark Nifty 50 declined 1.9 per cent during the month, while Sensex fell 2.8 per cent. The losses came after a strong rebound in April, when the Nifty had surged 7.5 per cent following an 11.3 per cent decline in March.
Market breadth remained weak, with 10 of the 16 major sectoral indices ending the month lower. Consumer durables was the worst-performing sector, declining 6.2 per cent, followed by oil & gas, which fell 4.2 per cent. In contrast, metal and pharma outperformed.
Among Nifty 50 constituents, Adani Enterprises emerged as the top gainer with a rise of nearly 22 per cent. On the losing side, ONGC fell 11.4 per cent, while SBI and ITC were among the other major laggards.
Broader markets continued to outperform the benchmarks. The Nifty Midcap 100 gained 3.2 per cent, while the Nifty Smallcap 100 rose 0.7 per cent in May.
Brent crude futures declined about 18 per cent as concerns over supply disruptions eased. However, prices remained 27 per cent higher than before the Iran conflict, keeping concerns alive over India’s import bill and inflation outlook. FPIs continued to pull money out of Indian equities, although the pace of selling moderated. They sold shares worth nearly ₹34,000 crore during the month (up to May 27), compared with a record ₹1.22 trillion in March.
Analysts said elevated oil prices and the absence of a strong AI-led investment has kept Indian equities out of favour among foreign investors, even as global markets rallied.
“May proved to be a highly volatile month for financial markets, ultimately ending with a cautious and defensive undertone. Repeated setbacks in West Asia peace efforts, lingering uncertainty surrounding the Strait of Hormuz, and persistent domestic headwinds combined to keep investors on edge despite the recent correction in energy prices,” said Ponmudi R, chief executive officer, Enrich Money.
 "Stock broker, markets")