Markets Tumble as Global Cues and Profit Booking Weigh on Sentiment, Sensex down by 869 points, Nifty by 261.55

Indian equity benchmarks witnessed a sharp decline on Tuesday, with the BSE Sensex plunging over 800 points and the NSE Nifty slipping below the 24,700 mark. The downturn was attributed to a combination of global uncertainties, foreign institutional investor (FII) outflows, and profit booking following recent market rallies.

Benchmark Indices Decline

The BSE Sensex closed at 81,190.35, down 869.07 points, while the NSE Nifty settled at 24,683.90, down by 261.55 points, marking a decline of 1.05%. This marked the second consecutive session of losses for the indices. 

Key Factors Behind the Sell-Off

Several factors contributed to the market's decline

Global Credit Concerns: Moody's downgrade of the US government's credit rating raised concerns about global economic stability, leading to risk-off sentiment among investors.

FII Outflows: Foreign institutional investors turned net sellers, withdrawing funds from Indian equities amid global uncertainties.

Profit Booking: Investors engaged in profit booking after recent market rallies, particularly in heavyweight stocks.

Technical Indicators: The Nifty's overbought technical indicators prompted caution among traders, leading to further selling pressure.

Sectoral Performance

The market decline was broad-based, with significant losses in the auto, banking, and energy sectors:

Auto: The Nifty Auto index fell by 2.17%, with major players like Tata Motors and Mahindra & Mahindra witnessing declines.

Banking: Banking stocks were under pressure, with the Nifty Bank index dropping by 1.03%.

Energy: Energy stocks also contributed to the decline, reflecting concerns over global oil prices and demand.

India on Alert Amid New COVID-19 Wave in Asia

India has heightened surveillance following a fresh wave of COVID-19 cases emerging across parts of Asia. As of 20 May 2025, the country has reported 257 active cases. Health authorities have stated that the situation remains under control, with no cause for panic. The Union Health Ministry confirmed that genomic surveillance and hospital preparedness are being closely monitored. Although the recent spike has led to alerts in several neighbouring countries, Indian officials maintain that current caseloads are low and vaccination coverage remains robust.

Outlook

Market participants are expected to remain cautious in the near term, closely monitoring global developments and institutional investment trends. Analysts suggest that while the market may experience short-term volatility, underlying economic fundamentals remain supportive of long-term growth.

Current Market Update

• The Sensex is trading at 81,798.88 down by -260.54 points or -0.31%.
• The NSE Nifty 50 is trading at 24,860.35 down by -85.35 points or -0.39%.

Top 5 Gainers in the Market

Coal India (COAL)

• Opening Price: ₹405.50
• Current Market Price (LTP): ₹416.35
• Percentage Change: +3.39%

Coal India surged 3.39%, leading the market. The rally is attributed to strong coal production figures for April-May and expectations of higher demand from the power sector as summer peaks. Recent news also highlights government initiatives to boost domestic coal output and reduce imports, which has improved investor sentiment.

ONGC (ONGC)

• Opening Price: ₹246.79
• Current Market Price (LTP): ₹251.27
• Percentage Change: +1.90%
  ONGC gained 1.90% amid a rebound in global crude oil prices and positive cues from the energy sector. The company is also expected to benefit from recent government policy support for domestic exploration and increased upstream activity.

Tata Steel (TATA STEEL)

• Opening Price: ₹158.35
• Current Market Price (LTP): ₹159.56
• Percentage Change: +1.26%
  Tata Steel rose 1.26% following robust quarterly results and a positive outlook on global steel demand. News reports indicate that optimism around Chinese stimulus measures and improved realizations have supported steel stocks.

Dr. Reddy’s Laboratories Ltd (DR REDDY)

• Opening Price: ₹1,222.00
• Current Market Price (LTP): ₹1,231.70
• Percentage Change: +1.04%
  Dr. Reddy’s advanced 1.04% after receiving regulatory approvals for key products in the US and Europe. The pharmaceutical sector has also seen renewed buying interest as investors look for defensives amid global market volatility.

NTPC

• Opening Price: ₹346.90
• Current Market Price (LTP): ₹348.20
• Percentage Change: +0.88%

NTPC climbed 0.88% as higher power demand and supportive government policies for the energy sector continue to benefit the company. Analysts have also cited stable operational performance and expectations of steady earnings growth.

Top 5 Losers in the Market

Eternal (ETERNAL)

• Opening Price: ₹240.00
• Current Market Price (LTP): ₹230.91
• Percentage Change: -2.99%
  Eternal fell 2.99%, likely due to profit booking after a recent rally and lack of fresh positive triggers. Midcap and smallcap stocks have generally been more volatile, and sector commentary points to increased caution among investors

Hero MotorCorp (HEROMOTOCO)

• Opening Price: ₹4,409.00
• Current Market Price (LTP): ₹4,308.00
• Percentage Change: -1.82%
  Hero MotoCorp declined 1.82% amid concerns about margin pressures from rising input costs and subdued rural demand. The two-wheeler sector has also faced headwinds due to increased competition and cautious consumer sentiment.

HDFC Bank (HDFC)

• Opening Price: ₹1,928.10.
• Current Market Price (LTP): ₹1,917.00
• Percentage Change: -1.12%
  HDFC Bank dropped 1.12% as the banking sector saw profit booking and investor caution after mixed signals from recent quarterly results. Concerns over asset quality and slower loan growth have also contributed to the decline.

Cipla (CIPLA)

• Opening Price: ₹1,495.40
• Current Market Price (LTP): ₹1,475.10
• Percentage Change: -1.11%
  Cipla slipped 1.11%, affected by regulatory headwinds in the US market and a cautious outlook on export growth. The pharmaceutical sector has seen some profit booking following a recent uptrend.

Mahindra and Mahindra (M&M)

• Opening Price: ₹3,128.20
• Current Market Price (LTP): ₹3,094.40
• Percentage Change: -1.07%
  M&M lost 1.07% due to worries about slowing rural demand and rising input costs impacting margins. The auto sector has also faced pressure from weaker-than-expected sales in certain segments and overall cautious investor sentiment.

Indian stock markets opened on a firm note on Tuesday, May 20, 2025, supported by improved investor sentiment and positive global cues.The Nifty 50 began the day at 24,996.20, gaining 50.75 points or 0.20%. Meanwhile, the BSE Sensex opened at 82,116.17, up by 56.75 points or 0.07%. However, soon after the domestic benchmark indices turned choppy in the early trade. As the earnings season continues, stock-specific action is likely to guide market movements through the day.

Wall Street Ends Higher Despite Moody’s U.S. Credit Downgrade

U.S. equities closed modestly higher on Monday, shaking off early session losses after Treasury yields retreated from their intraday peaks. The S&P 500 posted a slim gain of 0.09% to settle at 5,963.60, notching its sixth straight day of gains. The tech-heavy Nasdaq Composite edged up 0.02% to close at 19,215.46. Meanwhile, the Dow Jones Industrial Average advanced 137.33 points, or 0.32%, ending the day at 42,792.07, buoyed by a strong rebound in UnitedHealth, which surged 8% following recent pressure on the stock.

The cautious gains came as investors absorbed the implications of Moody’s decision to downgrade the U.S. long-term credit rating by one notch to Aa1, citing concerns over the ballooning fiscal deficit and refinancing risks amid elevated interest rates. The move aligns Moody’s with fellow rating agencies S&P and Fitch, both of which had previously stripped the U.S. of its top-tier status.

Bond markets reacted swiftly, with the 30-year Treasury yield briefly crossing the 5% mark and the 10-year yield topping 4.5%, reviving concerns that had weighed on equities in recent weeks. Higher borrowing costs also pressured mortgage rates, which track the 10-year yield.

At one point during the session, the Dow fell more than 300 points and the S&P 500 was down nearly 1%. However, a pullback in yields later in the day helped markets recover lost ground heading into the close.

The US Dollar Index (DXY), which measures the greenback against a basket of six major currencies, experienced a modest decline. The index closed at 100.38, down 0.05% from the previous session's close of 100.43.The USD/INR exchange rate opened at ₹85.36 and closed at ₹85.42, marking a minor weakening of the rupee. This movement reflects subtle shifts in global currency markets, influenced by various economic indicators and investor sentiments.

Gold prices experienced a decline on Tuesday, influenced by a firm US dollar and growing optimism surrounding potential ceasefire negotiations between Russia and Ukraine. Spot gold fell by 0.5% to $3,213.35 per ounce, while US gold futures slipped by 0.6% to $3,215.50. In India as of today, the rate for 24-carat gold stood at ₹9,569, per gram, while 22-carat gold was priced at ₹8,773 per gram.

Crude oil prices saw an uptick, with West Texas Intermediate (WTI) crude rising to around $62.3 per barrel. This increase is attributed to heightened uncertainty over the progress of US-Iran nuclear negotiations, which could impact global oil supply dynamics.

Stocks in Focus 

Bharat Electronics Ltd (BEL) BEL reported a robust Q4 performance, with net profit rising 18% year-on-year to ₹2,127 crore and revenue increasing by 6.8% to ₹9,149.6 crore, surpassing market expectations. 

DLF Ltd The real estate major posted a 36.3% year-on-year increase in net profit to ₹1,282 crore for Q4FY25, with revenue surging 46.5% to ₹3,127.6 crore

Power Grid Corporation of India is under the spotlight due to its stable performance and role in the country's infrastructure development.

IndusInd Bank is being closely watched following recent developments in the banking sector and its performance metrics.5. Waaree Energies

Waaree Energies is gaining attention as a key player in the renewable energy sector, aligning with the global shift towards sustainable energy sources. 6. Rail Vikas Nigam Ltd (RVNL)

RVNL is in focus due to its involvement in significant infrastructure projects and recent stock performance. 7. Ola Electric

Ola Electric is attracting investor interest amid the growing electric vehicle market and its expansion plans. 

Tata Steel Ltd Tata Steel has shown a bullish breakout on the daily chart at ₹154, with analysts setting a short-term target of ₹163–165, supported by positive RSI indicators. 

Central Depository Services (India) Ltd (CDSL) CDSL closed above the key resistance level of ₹1,400, indicating bullish strength, with a target zone of ₹1,540–1,565. 

PI Industries Ltd PI Industries has given a breakout from a reverse head and shoulder pattern, a strong bullish reversal signal, with a target price of ₹4,000. 

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