Sensex, Nifty end lower amid global tensions
Mumbai, May 19
Indian benchmark equity indices erased their intra-day gains and closed lower on Tuesday as weakness in banking, financial and metal stocks weighed on investor sentiment.
The Sensex declined 114.19 points, or 0.15 per cent, to close at 75,200.85. The Nifty settled 31.95 points, or 0.14 per cent, lower at 23,618.
Commenting on Nifty technical outlook, experts said that a sustained move above the 23,700-23,800 region will be essential to strengthen recovery momentum toward the psychological 24,000 mark, where stronger selling pressure is likely to emerge.
"On the downside, the 23,600-23,500 zone continues to remain a crucial immediate support area, and a decisive breakdown below this region could extend weakness toward the broader 23,300 zone," a market expert mentioned.
Among the major laggards in the Nifty index were Titan Company, UltraTech Cement and Tata Consumer Products.
Kotak Mahindra Bank were the top loser on Sensex. Other top laggards were Titan Bharti Airtel, Sun Pharma and IndiGo.
On the other hand, Infosys led the gainers pack. HCL Tech, Tech Mahindra, Eternal and TCS were among top gainers on the same index.
The Indian rupee weakened sharply during the session, falling 25 paise to touch a fresh low of 96.61 against the US dollar.
The currency eventually settled at 95.53 per dollar, compared to its previous close of 95.36.
Sectorally, banking and financial shares remained under pressure throughout the session.
The Nifty Private Bank index emerged as the worst-performing sectoral index, while the Nifty Bank and Nifty Financial Services indices also underperformed the broader market.
However, some sectors managed to buck the weak trend. The Nifty IT, Nifty Realty and Nifty Chemical indices ended higher and outperformed the benchmark indices.
Broader markets showed resilience despite weakness in frontline indices. The Nifty MidCap index rose 0.91 per cent, while the Nifty SmallCap index gained 1.17 per cent during the session.
Meanwhile, Rupee traded weaker by around 10 paise near 96.53, as elevated crude oil prices and continued pressure on capital flows kept the currency under stress.
"The broader trend remains weak, with rupee expected to trade in a range of 96.25-97.00 in the near term," an analyst stated.
— IANS
Reader Comments
That rupee fall is concerning! 95.53 and it touched 96.61 intraday? If this continues, imports will become expensive and inflation will hit common people. Government needs to step in and stabilize the currency. Not everyone is invested in stocks - middle class families feel the pinch of rising prices.
IT stocks saving the day again! Infosys, HCL, TCS all up. When global uncertainties hit, our IT sector benefits from dollar strength. Tech Mahindra also gaining. Good time to hold IT shares. Though banking weakness is worrying for overall market health.
Rupee at 95.53 and experts predicting 97 range? Wow. This is exactly what happens when we're too dependent on foreign capital. Time to boost exports and reduce oil dependency. At least the realty and chemical sectors are showing some strength. Hope government focuses on manufacturing boost.
Interesting day for Indian markets. IT outperformance makes sense given global uncertainty. But private banks weakness - Kotak Mahindra leading losers - suggests sectoral rotation happening. 23,600 support level critical; if it breaks, could see further downside. Watching FII flows for cues.
My portfolio is bleeding today because of banking stocks! 😩 But seeing midcaps and smallcaps rally gives some hope. Even in tough times, Indian markets show depth. Just wish the volatility reduces - hard for retail investors like me to decide entry points.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.