The stock market opened lower today due to profit booking after a significant rally in the previous session. Let’s break down the key factors driving today’s market movement. The NSE Nifty 50 opened below the 25,000 mark, and the BSE Sensex was down by over 250 points in early trade.
Global cues were mixed, with Asian markets showing a lack of clear direction, while European markets opened positively and US equities had largely finished higher. Major news included profit booking in heavyweight stocks, a significant block deal involving Bharti Airtel, and the ongoing Q4 FY25 earnings season. Investor sentiment appeared cautious, leading to profit realisation, particularly in prominent stocks across various sectors.
Key Reasons for Market Movement Today
Global Market Cues
- US market trends from the previous session were largely positive, with the S&P 500 and Dow Jones Industrial Average both recording gains.
- Asian markets presented a mixed picture. Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng closed in negative territory, while South Korea's Kospi and Australia's S&P/ASX 200 saw increases.
- European stock markets opened with a positive bias, potentially offering some support to the Indian market.
Mixed global market sentiment impacted local investor confidence today.
FII & DII Activity
- On Thursday, May 15, 2025, Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth ₹5,392.94 crore.
- Domestic Institutional Investors (DIIs) were net sellers on the same day, selling equities worth ₹1,668.47 crore.
- The net buying by FIIs likely provided some support, while DII selling might have contributed to downward pressure on benchmark indices.
FII inflow lent partial stability, even as DII outflows added selling pressure.
Sectoral Impact & Stock Performance
- Leading sectors included Nifty Realty (up 1.6%), Energy, and Auto.
- Sectors facing pressure were Nifty IT (down nearly 1%), Metal, Pharma, and Healthcare.
Top 5 Gainers on NSE Nifty 50:
- Bharat Electronics (BEL): ₹363.80, up by 3.82%
- Tata Consumer Products: ₹1,170.00, up by 1.99%
- Bajaj Auto: ₹8,491.00, up by 1.98%
- Adani Enterprises: ₹2,551.00, up by 1.23%
- Hindustan Unilever: ₹2,380.00, up by 1.05%
Top 5 Losers on NSE Nifty 50:
- Bharti Airtel: ₹1,814.40, down by 2.81%
- HCL Technologies: ₹1,661.00, down by 2.06%
- Infosys: ₹1,589.40, down by 1.46%
- JSW Steel: ₹1,024.30, down by 1.35%
- Shriram Finance: ₹666.30, down by 1.26%
Defensive sectors and select midcaps displayed resilience amidst market-wide profit booking.
Macro & Economic Factors
- UN revised India's GDP growth forecast for 2025 to 6.3%, citing global uncertainties but highlighting strong domestic consumption and investment.
- Brent crude oil prices saw a marginal increase to around USD 64.59 per barrel.
- RBI's monetary easing cycle initiated in February 2025 continues to be a factor.
Domestic macro fundamentals remain broadly positive, providing a supportive backdrop.
Market Sentiment & News Triggers
- Profit booking, especially in IT and heavyweight stocks, led to the market's decline.
- Singtel's stake reduction in Bharti Airtel via a block deal impacted its stock price.
- Q4 FY25 earnings announcements from companies like BHEL, Emami, JSW Energy, and Cochin Shipyard influenced stock-specific movements. Defence stocks remained buoyant.
News-driven movements dominated market sentiment, with earnings results and block deals in focus.
Technical Outlook
- Analysts anticipate a potentially positive bias for the next trading day (Monday, 19 May 2025), building on the earlier week's rally.
- Key resistance levels for the Nifty 50 are expected around 25,200-25,300, with support likely in the 24,800-25,020 range.
- For the Sensex, resistance could be near 82,800-83,300, with support around 81,800.
Traders are advised to watch global cues and corporate earnings for directional clarity.
Conclusion
The Indian stock market experienced a day of mild losses today, primarily due to profit booking after a strong previous session. Mixed global cues and company-specific news also played a role. Despite the benchmark indices closing lower, the broader market showed strength. Investors should continue monitoring earnings releases and international market trends for near-term cues.