Indian stock markets end lower due to weak global cues

IANS May 22, 2025 267 views

Indian stock markets experienced a significant downturn on Thursday, with the Sensex falling 644.64 points and Nifty dropping 203.75 points. Weak global cues, particularly from Asian markets, triggered selling across multiple sectors including IT, Auto, and FMCG. Despite ongoing market challenges, analysts suggest a potential consolidation phase in the near term. The fear gauge, India VIX, marginally eased, indicating some stabilization in market volatility.

"Technically, Nifty formed a red candle on the daily chart, suggesting weakness" - Hrishikesh Yedve, Asit C. Mehta Investment Intermediates Ltd.
Mumbai, May 22: Indian equity markets ended lower on Thursday due to weak global cues, especially from the Asian markets which affected investor sentiment.

Key Points

1

Sensex falls 0.79% with significant drops in auto and consumer sectors

2

Nifty finds support near 21-Day Exponential Moving Average

3

Global market volatility continues to challenge Indian equities

4

Media sector remains the lone gainer amid broader market decline

At the closing bell, the Sensex fell by 644.64 points, or 0.79 per cent, closing at 80,951.99. During the day, it moved between 80,489.92 and 81,323.24.

Similarly, the Nifty ended lower by 203.75 points, or 0.82 per cent, at 24,609.70. "Technically, Nifty formed a red candle on the daily chart, suggesting weakness," said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates Ltd.

"However, the index found support around the 21-Day Exponential Moving Average (21-DEMA), which is placed near 24,445. On the upside, 25,000 will act as a key resistance level for the index in the short term," he added.

On the 30-share index, the top losers were from sectors like auto and consumer goods.

Companies such as Power Grid, Mahindra and Mahindra, ITC, Bajaj Finserv, and HCL Technologies saw significant declines.

On the other hand, IndusInd Bank led the gainers pack on BSE by rising 1.82 per cent.

It was followed by Bharti Airtel which climbed 0.44 per cent, Ultra Tech Cement, which close the intra-day trading session with a gain of 0.10 per cent.

In the broader market, both the Nifty Midcap100 and Nifty Smallcap100 indices ended in the red, falling by 0.52 per cent and 0.26 per cent, respectively.

On the sectoral front, selling was seen across the board, with the exception of Nifty Media, which managed to stay in the green.

The worst-hit sectors were IT, Auto, FMCG, Consumer Durables, and Oil and Gas -- all of which declined by over 1 per cent.

The Nifty FMCG and consumer durables sectors slipped by more than 1 per cent, while the Nifty IT and Pharma indices dropped by 0.87 per cent and 0.9 per cent respectively.

The fear gauge, India VIX, slipped by 1.65 per cent to close at 17.26, indicating a slight easing in market volatility.

Despite a notable improvement in India's PMI in May and uptick in fiscal scenario, ongoing uncertainty around trade negotiations and persistent global market volatility are likely to keep Indian equities in a consolidation phase in the near term, said analysts.

Reader Comments

Here are 6 diverse Indian user comments for the stock market article:
R
Rajesh K.
This is just a minor correction in our bull market run. Remember how Sensex crossed 80k recently? Markets always go up and down, but long-term investors need not worry. SIP in good funds is the way! 💪
P
Priya M.
Auto and FMCG sectors getting hit hard shows consumer demand might be slowing down. Government should focus more on rural economy revival in upcoming budget. Still hopeful about IT sector recovery in coming quarters.
A
Amit S.
Why is our market so dependent on global cues? We should develop more domestic institutional investors to reduce this volatility. RBI and SEBI need to work on making our markets more resilient.
S
Sunita R.
Good opportunity to buy quality stocks at discount prices! Mahindra & ITC have strong fundamentals, this dip won't last long. Remember Warren Buffett's advice - be fearful when others are greedy and greedy when others are fearful 😊
V
Vikram J.
The way markets are behaving, it seems retail investors are becoming more mature. Earlier such falls would create panic selling, but now people understand these are normal market movements. Financial literacy improving in India!
N
Neha P.
While short-term movements are concerning, we must look at the bigger picture. India's growth story remains intact with strong macros. This is just profit booking after the election rally. Hold tight investors! 🚀

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Tags:
Indian Stock Market Sensex Nifty Market Volatility Asian Markets Investor Sentiment Financial Markets