Sensex today falls 180 points, Nifty 50 slips below 24,800 in range-bound trade; metal stocks bleed
Stock market today: The Indian stock market finished the last trading session of May in the red, as a sharp sell-off in technology, auto, and metal stocks dragged the indices lower after a brief rebound in the previous session.
PSU stocks offered little support to the market, which wasn’t enough to lift the indices higher. Eventually, the Nifty 50 ended with a cut of 83 points, or 0.33%, slipping back below the 24,800 mark to close at 24,750 points, while the Sensex skidded 182 points, or 0.22%, to settle at 81,451 points.
The broader markets, however, managed to end the session with mild losses, indicating that market breadth still favoured the bulls. The Nifty Midcap 100 closed the session with a drop of 0.06%, and the Nifty Smallcap 100 ended with a marginal cut of 0.03%.
Despite lacklustre activity in the Nifty 50 and Sensex during much of the second half of May, both indices managed to end the month with gains of over 1.5%, extending their winning streak to a third consecutive month.
While large-caps concluded the month with decent gains, mid- and small-cap indices outperformed as the Nifty Midcap 100 rose 6%, while the Nifty Smallcap 100 rallied even higher by 9%.
Markets have been moving in a tight range amid a lack of fresh triggers, and the resurfacing of global trade tensions has also prompted investors to stay on the sidelines. The inconsistency in overseas investor inflows has also been weighing on overall market movement.
Meanwhile, India’s GDP growth data for March is due later today, and the latest U.S. PCE data—also scheduled for release—could offer further clarity on the Federal Reserve’s rate-cut trajectory, which remains uncertain amid sticky inflation and slowing growth.
Sectoral Performance: Metal stocks bleed; PSU banks the lone gainers
Among the 13 major sectoral indices, 12 ended the final session of the month in the red, with metal counters emerging as the top laggards. The Nifty Metal index slipped 1.69% in trade, while tech stocks witnessed another round of selling, dragging the Nifty IT index down by 1.15%.
The pressure came as concerns over a slowdown grew in its key market—the US—after the world’s largest economy contracted in the first quarter, marking its first negative growth reading in three years.
Sentiment towards the IT pack was further dampened by trade-related uncertainty amid ongoing legal disputes over former President Donald Trump’s tariffs.
Just when markets thought the tariff saga had been clipped by the courts, the plot flipped. A federal appeals court ruled Thursday that Trump’s sweeping trade duties can stay, for now.
Other sectoral indices, including Nifty Auto, Nifty Oil & Gas, Nifty Pharma, Nifty Realty, and Nifty FMCG, all closed in the red with losses ranging between 0.6% and 1%. Only the Nifty PSU Bank index managed to end the session with a gain of 2.88%.
Commenting on today’s market action, Vinod Nair, Head of Research, Geojit Investments Limited, said, “A range-bound movement continued in the market, with the temporary reinstatement of US tariffs by the appeal court influencing investors to stay sidelined. The global market may contend with macroeconomic concerns as the global trade landscape has yet to see stability, which may navigate a short-term consolidation.”
“Meanwhile, FII inflows continued due to the volatility in the US 10-year yield and an expectation of solid domestic Q4 GDP data later today and a rate cut by RBI,” he further stated.
Bearish signals emerge as Nifty struggles to cross 24,800, says expert
Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty remained volatile with a slightly negative bias on the first day of the June series. On the smaller time frame, the index has formed a bearish moving average crossover. The RSI on the hourly chart indicates bearish price momentum, suggesting short-term weakness. Additionally, signs of exhaustion are visible on the daily RSI, accompanied by a strong negative divergence.”
However, Nifty has been struggling to move beyond a certain level. Immediate support is placed at 24,700. Rupak believes a breach below this level could lead to a decline towards 24,500. On the higher side, 24,800 is likely to act as a crucial resistance, as call writers have built significant positions at that level, he noted.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
