Implies that the action has an unintended negative effect on someone's mood or situation. When I mentioned the poor weather, I didn't mean to rain on your parade.
Pro Tip 2/3
Not Literal
It's a metaphorical expression and does not involve actual rain or a parade. That penalty call really rained on our parade during the game.
Pro Tip 3/3
Apologetic Tone
Often used with an apologetic tone when the speaker is aware that they might upset someone. Sorry to rain on your parade, but your car has a flat tire.