Mumbai, May 31 (IANS) India’s benchmark equity indices ended sharply lower on Friday after a steep selloff in the final hour of trade, with investors turning cautious ahead of key domestic and global developments that are expected to drive market sentiment next week.

Investors are now expected to closely track the Reserve Bank of India’s monetary policy decision, developments surrounding the US-Iran conflict, crude oil price movements and foreign investor activity for cues in the coming week.

The 30-share Sensex plunged 1,092 points, or 1.44 per cent, to settle at 74,775.74, while the Nifty declined 359 points, or 1.50 per cent, to close at 23,547.75. During intra-day trade, the Nifty slipped to a low of 23,485 as selling pressure intensified in the final hour.

For most of the session, benchmark indices traded within a narrow range as investors remained cautious amid uncertainty over a possible agreement between the United States and Iran. However, markets witnessed sharp profit booking toward the close, leading to a broad-based decline across sectors.

One of the key triggers for the market next week will be the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting scheduled from June 3 to June 5, 2026. The six-member panel, headed by RBI Governor Sanjay Malhotra, is expected to deliberate on interest rates, inflation trends, liquidity conditions and economic growth prospects.

Global geopolitical developments are also likely to remain in focus. According to reports, Iranian state media claimed that a proposed memorandum of understanding with the United States includes the release of $12 billion in frozen Iranian assets. The report referred to an “unofficial” draft of the agreement, although the White House dismissed similar claims earlier this week as a “fabrication.”

Crude oil prices, another major factor influencing Indian equities, declined sharply on Friday. Oil futures dropped more than 2 per cent to hit six-week lows amid hopes of a ceasefire involving the US, Israel and Iran.

–IANS

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