After opening on a lower note, Indian benchmark indices extended their downward momentum throughout the session, ending the session in the red.

The BSE and the NSE benchmark indices witnessed wild swings as investors were caught between rich valuations, the weekly expiry of the Sensex index, and global uncertainty around Donald Trump's trade tariffs.

At the closing bell, the BSE Sensex  closed lower by 636 points (down 0.8%)

Meanwhile, the NSE Nifty closed points 174 lower (down 0.7%)

M&M is among the top gainers today

Adani Ports, IndusInd Bank, and Power Grid Corp, on the other hand, were among the top losers today.

The GIFT Nifty was trading at  24,64,5, lower by 125 points at the time of writing.

The BSE MidCap index ended 0.5% lower, and the BSE SmallCap index ended 0.1% lower.

Barring the realty sector and the commodities sector, all other sectoral indices are trading negatively today, with stocks in the power sector and the banking sector witnessing selling pressure.

The rupee is trading at Rs 85.5 against the US$.

Gold prices for the latest contract on MCX are trading 0.2% lower at Rs 95,160 per 10 grams.

Meanwhile, silver prices were trading 0.2% lower at Rs 97,626 per 1 kg.

Here are three reasons why Indian share markets are falling:

#1 Valuations worries

Indian Market Valuation remains high despite recent corrections. A report by Kotak Institutional Equities notes that valuations are expensive across sectors. Also reports warns that domestic and global growth challenges, inflation and other headwinds may impact the Indian Markets.

#2 High Valuations Scare FIIs

FII sold Rs 29.5 bn worth of Indian stocks yesterday due to high valuations, affecting markets sentiment.

#3 Global concerns

Global concerns are affecting market sentiment. China; factory activity declined in May due ton US tariff, with the manufacturing PMI dropping to 48.3 from 50.4 in April. This has impacted Asian Markets which mostly closed lower.
 

Ola Electric Shares Plummet on Block Deal

In the news from auto sector, shares of Ola Electric fell over 7% after a Rs 7.3 billion (bn) block deal was executed, involving a large number of shares.

Hyundai Motors India is likely the seller in Ola Electric's block deal. As of March, Hyundai held a 2.8% stake in Ola Electric.

Ola Electric reported a net loss of Rs 8.7 bn in Q4FY25 wider than Rs 4.5 bn loss in the same period last year. Steep discounts and falling sales have contributed to increased loss.

Revenue dropped 62% to Rs 6.1 bn in Q4FY25, from Rs 15.9 bn in the same period last year. Vehicle registration dropped 52% to 56,760 units and deliveries nearly reduced by half to 51,375 units.

Ola Electric Management aims to achieve profitability and improve margins this year.

The company aims to focus on scaling revenue and operating leverage in FY26 to achieve sustainable profitability. With a strong product roadmap, vertical integration, R&D focus and robust distribution and service manufacture, the company is poised to drive the next phase of EV Adoption in India.

Waaree Renewable Gains on Solar Contract

Moving on to the news from power sector, shares of Waaree Renewable rose 4.5% after the company announced it secured a Rs 34.6 bn solar project from CESC. The project involves a 300 MW AC/435 DC Solar power capacity.

Waaree Renewable will build a ground-mounted solar project for CESC under an engineering, procurement and construction (EPC) contract.

The Solar project is expected to be completed by 2026.

Revenue jumped 74% to Rs 4.7 bn in Q4 compared to Rs 2.6 bn in the same period last year. Net profit soared 83% to Rs 0.9 bn compared to Rs 0.5 bn in the same period last year.

Waaree Renewables EBITDA rose 62.8% to Rs 12.2 bn in Q4. However, its EBITDA margin slightly dipped to 25.7% from 27.5% last year.

Waaree Energies founded in 1990, is a leading Indian Solar PV module manufacture with a 12 GW, production capacity. The company operates five manufacturing facilities in India and has an international presence.
 

Why Adani Ports Share Price Is Falling

Moving on to the news from port sector, shares of Adani Ports decline 3%. This decline follows a report by the Wall Street Journal stating that US prosecutors are investigating whether Adani entities imported Iranian liquified petroleum gas (LPG) into India through Mundra Port.

Despite this, Adani Group strongly denied the allegations reported by the Wall Street. The company stated that it is not aware of any investigation by US authorities regarding the alleged import of Iranian LPG into India.

The Wall Street journal reported that tankers between the Gulf and Adani's Mundra port showed signs of trying to evade sanctions.

Adani group refuse any suggestions of violating US sanctions on Iran, stating the claims are false and mean to harm the reputation. It also stated that they don't handle Iranian cargo at their ports.

The Adani Group stated that they strictly avoid handling shipments from Iran, Iranian flagged vessels or ships owned by Iranians at all their ports.

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