Indices End Near Day’s Low in Volatile Trade; Nifty Closes Below 24,900

Indian stock markets ended lower on Tuesday, May 27, 2025, after a highly volatile session, with benchmark indices closing near the day’s low. The BSE Sensex plunged 625 points to settle at 81,552, while the NSE Nifty dropped 175 points to close at 24,826, slipping below the crucial 24,900 mark. This decline came despite an initial intraday recovery led by banking, pharma, and metal stocks.

The market opened on a weak note but attempted a mid-day rebound following cues from global developments such as easing dollar strength and progress in U.S - EU trade negotiations. However, the bounce proved short-lived. Selling pressure intensified during the latter half of the session, especially in heavyweight sectors like IT, FMCG, and automobiles, dragging the indices sharply lower by the close.

The Nifty Bank index also ended in the red, falling 219 points to settle at 55,353, reflecting persistent weakness in large financial names. On the contrary, midcaps and smallcaps displayed relative strength, continuing their recent trend of outperformance. The Nifty Midcap 100 index gained 87 points to close at 57,155, boosted by positive Q4 earnings surprises and investor interest in broader market opportunities.

Across sectoral indices, weakness was visible in Nifty IT, Auto, FMCG, and Oil & Gas, which declined up to 0.88 percent. The IT index, in particular, faced profit booking after a short rally, while FMCG stocks corrected amid valuation concerns. The broader market, however, remained supported by strength in select midcap and defence-related counters.

Among key stock movers, InterGlobe Aviation shares declined 2 percent after reports emerged that Rakesh Gangwal was the seller in a large block deal executed during the day. Olectra Greentech lost 7 percent despite clarifying concerns over its Maharashtra e-bus order, with investors unconvinced by the company’s response. TTK Prestige dropped 6 percent after posting a net loss in Q4, while Blue Dart Express declined 5 percent due to margin compression and a fall in EBITDA.

BrainBees Solutions, the parent company of FirstCry, saw its shares fall 6 percent after reporting a sharp 52 percent decline in EBITDA for the fourth quarter. Bajaj Healthcare also lost 7 percent on account of weak operational numbers. On the positive side, Bayer CropScience rallied 10 percent after posting a 59 percent year-on-year jump in PAT for Q4, and Cosmo First continued its strong momentum, now up nearly 60 percent in the last ten sessions.

Defence stocks showed resilience amid the broader weakness, with Garden Reach Shipbuilders & Engineers advancing over 3 percent and extending its winning streak to five sessions. The sector has been in focus due to rising government defence expenditure and strong order inflows.

Market volatility remained elevated throughout the session, with India VIX easing slightly from its peak, though it still reflected cautious sentiment among traders. Profit booking ahead of key resistance levels, weak cues from other Asian markets, and subdued participation from foreign institutional investors (FIIs) contributed to the market’s decline.

Despite recent gains, the Nifty has once again failed to convincingly hold above the 25,000 level, suggesting hesitation at higher valuations and a lack of fresh triggers. Large-cap stocks underperformed as earnings from several blue-chip companies remained tepid, adding to concerns over the strength of the ongoing rally. In contrast, mid- and small-cap segments have remained relatively resilient, supported by better-than-expected financial results and continued interest from domestic investors.

Looking ahead, market direction will likely be influenced by global macroeconomic developments, monsoon progression, institutional flows, and the final set of corporate earnings. Until then, investors may expect continued volatility and a range-bound market unless a strong catalyst emerges to break the current resistance levels decisively.

Mid-day Market Update

In a session marked by wild swings, the Indian equity markets staged an early afternoon rebound only to give up gains again by mid-day, reflecting the jittery sentiment across global and domestic cues.

The day began on a weak note, with both the Nifty and Sensex slipping in the morning trade. However, a broad-based recovery powered by a rebound in banking, pharma, and metal stocks lifted the benchmarks back into the green by late morning. At around 11:30 AM, the Sensex was up 148 points at 82,324, while the Nifty edged up 40 points to cross the 25,040 mark. Participation was fairly broad with 1,810 stocks advancing against 1,463 declines - an early sign that mid and small caps were holding stronger than their larger peers.

But the relief was short-lived.

By 1:20 PM, the mood had shifted again. The Sensex had erased its gains and was trading nearly flat with a negative bias, while the Nifty slipped almost 176 points, or about 0.7%, highlighting the nervousness in the system. The volatility index, India VIX, stayed elevated, easing marginally to 18.69 - still indicating heightened uncertainty in the near term.

Global cues played a crucial role in the market’s early bounce. The U.S. administration’s decision to delay the imposition of aggressive tariffs on the European Union helped calm fears of an immediate trade standoff. Alongside this, a dip in the dollar index signaled easing global risk aversion, giving Indian equities a temporary lift. Vinod Nair of Geojit Investments pointed out that the early arrival of the monsoon and a softening of domestic bond yields also encouraged risk-on sentiment among investors.

Sectorally, it was a mixed bag. After a weak start, indices like Nifty Bank, Metal, Pharma, and PSU Bank managed to turn around, posting modest gains between 0.04% and 0.59% by early afternoon. Nifty Midcap 100 and Smallcap 100 outperformed, gaining 0.22% and 0.41%, respectively - reinforcing the view that investors are cautiously rotating into broader market names.

However, pain remained in Nifty IT, Auto, Infra, and Oil & Gas stocks, which failed to recover meaningfully. These pockets continue to struggle amid global demand worries and valuation concerns.

Individual stock performance reflected the day’s choppiness - some names making intraday comebacks, others succumbing to selling pressure. Here are today’s top 5 Gainers and Top 5 Losers during the mid-day trade:

Top 5 Gainers in the Market

• Indusindbk (INDUSINDBK)

• Opening Price: ₹798.00
• Current Market Price (LTP): ₹822.35
• Percentage Change: 2.78%

IndusInd Bank shares are trading higher today, as the stock sees a rebound after recent heavy losses driven by accounting irregularities and regulatory scrutiny. Despite ongoing challenges, analysts maintain a 'hold' rating with a target near current levels, and today's uptick reflects short-term buying interest and improved sentiment in the broader market.

• Trent (TRENT)

• Opening Price: ₹5525.00
• Current Market Price (LTP): 5612.50
• Percentage Change: 1.57%

Trent shares are up today as investors react positively to its upcoming inclusion in the BSE Sensex, which is expected to trigger passive fund inflows, and because its recent quarterly results - despite a profit dip - beat market expectations, signaling strong revenue growth and continued expansion in its retail business.

• Asian Paints (ASIANPAINT)

• Opening Price: ₹2313.10
• Current Market Price (LTP): 2344.40
• Percentage Change: 0.74%
  

Asian Paints shares are up today as investors respond positively to the company’s announcement of a final dividend of ₹20.55 per share for FY25, with the record date set for June 10, 2025. This move signals continued shareholder rewards despite recent profit pressures, supporting renewed buying interest in the stock

• SBI Bank (SBIN)

• Opening Price: ₹794.40
• Current Market Price (LTP): 799.60
• Percentage Change: 0.65%

SBI (State Bank of India) shares inch up today as investors remain positive on the bank’s strong FY25 results, which include a 16% year-on-year rise in net profit and a recently declared interim dividend of ₹15.90 per share, signaling robust performance and continued shareholder friendly corporate actions.

• Adani Enterprises (ADANIENT)

•   Opening Price: ₹2545.90
•  Current Market Price (LTP): 2560.90
• Percentage Change: 0.52%

Adani Enterprises shares gained today due to a combination of strong quarterly results - highlighted by a significant surge in net profit - renewed investor confidence following positive developments in resolving overseas legal issues, and robust performance across the broader Adani Group, which has benefited from favorable government policies and increased institutional interest.

Top 5 Losers in the Market

• UltraTech Cement (ULTRACEMCO)

• Opening Price: ₹11676.00
• Current Market Price (LTP): ₹11445.00
• Percentage Change: -2.09%

UltraTech Cement shares are trading down today, falling around 2%, as investors react to concerns over the company’s recent decision to enter the wires and cables segment with a ₹1,800 crore investment. This move has raised worries about increased financial pressure, potential diversion from its core cement business, and uncertainty about returns from this diversification, leading to negative sentiment despite the company’s strong market position.

• Grasim(GRASIM)

• Opening Price: ₹2656.00
• Current Market Price (LTP): ₹2617.20
• Percentage Change: -1.48

Grasim Industries shares are trading in the red today, down over 1%, as investors react to recent quarterly results that showed a narrowing net loss but weaker-than-expected operating performance, along with broader market weakness and profit booking after a volatile month.

• NTPC (NTPC)

• Opening Price: ₹344
• Current Market Price (LTP): ₹338.40
• Percentage Change: -1.48

NTPC shares are inching lower today as investors react to concerns over subdued growth expectations, execution challenges in its renewable energy arm, and a recent decline in dividend income from subsidiaries, all contributing to a bearish market sentiment despite the company’s strong long-term fundamentals.

• JSW Steel (JSWSTEEL)

• Opening Price: ₹1032
• Current Market Price (LTP): ₹1021.30
• Percentage Change: -1.07

JSW Steel shares are trading down today as part of a broader market decline driven by profit booking after a recent rally, muted Q4 earnings growth across sectors, and weak global cues. Additionally, heavyweight stocks in the metals and industrials space, including JSW Steel, are under pressure as investors turn cautious amid rising U.S. Treasury yields and disappointing market expectations from the RBI dividend announcement.

• TATA Consumer Ltd (TATACONSUM)
• Opening Price: ₹1146.60
• Current Market Price (LTP): ₹1035.00
• Percentage Change: -1.099

Tata Consumer shares are down today as part of a broader decline in the FMCG sector and overall market weakness, with investors engaging in profit booking after recent gains and reacting to subdued sentiment across Asian markets and heavyweight stocks.

Indian Markets Open in Red

Domestic equity benchmarks Sensex and Nifty50 started Tuesday’s session on a subdued note, tracking mixed global cues and cautious investor sentiment. As of 9:22 AM, the Sensex was down 0.80%, while the Nifty50 slipped 0.70%, breaching the key 25,000 mark.

The weak start comes amid the final batch of Q4 earnings and geopolitical uncertainty surrounding U.S. President Donald Trump’s decision to postpone a planned 50% tariff on European Union imports until July 9.

Asia-Pacific Markets Mixed

Across Asia, markets were largely subdued. Japan’s Nikkei dipped 0.15%, while the broader Topix index traded flat. South Korea’s Kospi declined 0.32%, retreating from a three-month high. In contrast, Australia’s ASX 200 edged up 0.16%, bucking the regional trend.

Wall Street Futures Rally Despite Holiday Closure

U.S. markets remained shut on Monday due to Memorial Day. However, equity futures surged in early trade following Trump’s tariff delay. Dow Jones futures climbed 1%, S&P 500 futures gained 1.1%, and Nasdaq 100 futures advanced 1.3%.

Nifty Eyes 25,200 Resistance as Bulls Buy Dips

Despite the early dip, analysts note that buying on declines continues to offer support to the Nifty. The index faces key resistance near 25,200. A slew of block deals and promoter stake sales have re-emerged as market volatility eases. Promoters of IndiGo, Sagility, and PG Electroplast are expected to offload shares via block deals or OFS today.

LIC, Aurobindo Pharma, KEC Among Key Earnings Today

Investors will also track earnings reactions from Aurobindo Pharma, KEC International, Shilpa Medicare, and others. All eyes will be on Life Insurance Corporation of India (LIC), which is set to announce its quarterly numbers later today.

Gold and Silver Retreat Slightly; Long-Term Outlook Remains Bullish

Gold and silver prices edged lower following the tariff delay, as market anxiety cooled. On the MCX, gold futures fell ₹496 to ₹95,925 per 10 grams, while silver declined ₹102 to ₹97,952 per kg. However, analysts remain optimistic on precious metals as long-term portfolio hedges.

Data shows gold has delivered a 30% YoY gain and a 15% CAGR since 2001, consistently outperforming inflation. Notably, silver has shown more price stability in 2025, positioning itself as a relatively steadier bet.

Currency Update: Rupee Opens Slightly Weaker, Crude Slips 

The Indian rupee opened 5 paise lower at 85.14 against the US dollar, compared to Monday’s close of 85.09. Currency markets are digesting global macro signals, including dollar weakness. The dollar index fell to 98.85, while the euro stood at 1.1402 and the pound rose to 1.3577. Brent crude slipped to $63.98 as traders anticipate an OPEC+ decision on output levels.

Q4 Earnings Highlights

• Nazara Technologies: Reported a consolidated Q4FY25 net profit of ₹4.07 crore, up sharply from ₹18 lakh YoY. Loss from discontinued operations stood at ₹9.79 crore.
  
  
• Aurobindo Pharma: Posted a marginal dip in Q4 PAT to ₹903 crore, compared to ₹907 crore in Q4FY24.
  
  
• Blue Dart Express: Logged a 29% YoY decline in Q4 profit to ₹55.15 crore.
  
  
• Muthoot FinCorp: Q4 profit fell 20% YoY to ₹192 crore, down from ₹240 crore in Q4FY24.
  
  
• Gillette India: Saw a 60% YoY rise in Q4 net profit to ₹159 crore; revenue grew 12% to ₹767.47 crore.
  

Stocks in Focus

• IndiGo: Promoter Rakesh Gangwal to sell 3.4% stake via block deals worth ₹6,831 crore. The floor price is set at ₹5,175 per share, a 4.6% discount to the last close.
  
  
• MCX: SEBI fined the commodity exchange ₹25 lakh for disclosure lapses related to its trading software.
  
  
• Lupin: Entered a licensing agreement with SteinCares to commercialise biosimilar Ranibizumab in select Latin American markets.
  
  
• TCS: India’s largest IT services firm has split its AI.Cloud business into two distinct verticals, targeting higher growth in the GenAI and cloud segment.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here