The Indian stock market faced a sharp decline on Thursday as global uncertainties, weak US fiscal health signals, and a surge in US Treasury yields rattled investor sentiment. Persistent foreign fund outflows and broad-based selling weighed on both benchmark indices, while shipping stocks offered some respite.
Market Overview: Benchmarks Tumble Amid Weak Global Cues
Indian equity benchmarks slipped sharply, with frontline indices under pressure through the session. Negative global cues and aggressive FII selling dragged the market lower.
- Sensex: Closed at 80,951.99, down 644.64 points or 0.79%.
- Nifty 50: Ended at 24,609.70, losing 203.75 points or 0.82%.
- Both indices saw consistent selling pressure throughout the day amid a lack of positive triggers.
- Broader markets underperformed with the Nifty Midcap 100 down 0.99% and Nifty Smallcap 100 lower by 0.91%.
Wrap-up: Weak global markets, aggressive FII outflows, and cautious domestic sentiment pulled down Indian equities on Thursday.
Sectoral Performance: Shipping Outshines, Auto & FMCG Lead Declines
Sectorally, the market witnessed a broad-based sell-off barring shipping stocks, which bucked the weak trend.
- Auto: Biggest sectoral loser with a 1.4% drop, amid concerns over slowing demand and rising costs.
- FMCG: Fell by 1.27% due to inflationary pressures on raw materials.
- IT: Declined 1.11% tracking overnight weakness in US tech stocks.
- Nifty Bank: Down by 0.24%, closing at 54,941.30.
- Shipping Stocks: Jumped 4% amid positive global freight rate trends.
- Other indices like Pharma, PSU Banks, Private Banks, Consumer Durables, and Oil & Gas dropped between 0.5%-1%.
Wrap-up: While most sectors struggled, shipping stocks sailed ahead, defying the day’s negative bias.
Top Gainers and Losers: Key Movers in Trade
Here's a snapshot of the best and worst performers from the Nifty 50 pack:
Top 5 Gainers (Nifty 50):
- IndusInd Bank: Gained 1.76% to ₹783.5, driven by buying in select private banks.
- JSW Steel: Rose 0.71% to ₹1,008.00, supported by firm global steel prices.
- Bajaj Auto: Added 0.65% to ₹8,744.00 as two-wheeler export outlook improved.
- Bharti Airtel: Up 0.47% to ₹1,831.00 on steady subscriber additions and tariff hike buzz.
- Hero MotoCorp: Inched up 0.19% to ₹4,272.10 following positive retail sales data.
Top 5 Losers (Nifty 50):
- ONGC: Tanked 2.65% to ₹242.1 on crude price volatility and profit-booking.
- Mahindra & Mahindra (M&M): Dropped 2.42% to ₹3,016.00 amid weak rural demand concerns.
- Hindalco: Declined 2.03% to ₹649.55, mirroring weakness in global metal prices.
- Wipro: Fell 1.94% to ₹246.05, tracking US tech market correction.
- Trent: Slipped 1.79% to ₹5,346.00 on valuation concerns after a sharp rally.
Wrap-up: Stock-specific action was dictated by sectoral trends and global commodity movements, with banking and shipping names holding ground.
Global Cues: US Debt Worries and Yield Spike Hit Sentiment
Global markets turned cautious as rising fiscal concerns in the US and bond yield spikes unnerved investors.
- US Fiscal Health: Downgrade warnings from Moody’s and IMF fiscal deficit concerns sparked worries.
- US Treasury Yields: 30-year yields climbed to 5.09% and 10-year yields to 4.59%, making equities less attractive.
- Wall Street: Major US indices ended sharply lower on May 21.
- Asian Markets: Followed suit, closing in the red and pressuring Indian equities.
Wrap-up: Global risk-off sentiment led to persistent foreign fund selling and cautious domestic positioning.
FII and DII Activity: FIIs Dump Shares, DIIs Provide Support
Foreign institutional investors intensified their selling, while domestic institutions partially offset the selling spree.
- FIIs (Foreign Institutional Investors): Heavy net sellers in equities.
- DIIs (Domestic Institutional Investors): Netted purchases worth ₹683.77 crore, offering some cushion to the markets.
- The rupee also faced pressure, nearing the ₹83.25/$ mark due to global outflows.
Wrap-up: FII outflows remain a concern, though DIIs continue to stabilise markets amid volatility.
IPO Buzz and Primary Market Highlights
Despite weak secondary markets, primary market activity continued at a steady pace.
- Belrise Industries IPO: Subscription ongoing on Day 2; market observers noted steady retail and institutional interest.
- GMP (Grey Market Premium): Held around ₹13-14 indicating muted listing expectations.
- No major new listings or fresh IPO announcements today.
Wrap-up: IPO market stayed resilient with decent demand for selective offerings amid market turmoil.
Looking Ahead: Factors to Watch on 23 May
Key market triggers for the next session:
- India’s Economic Indicators: Updates on industrial output and leading economic index (LEI).
- Q4 FY25 Earnings: Stock-specific moves to persist.
- Crude Oil Prices and Middle East Tensions: Continued volatility could sway markets.
- US Fed Rate Signals and Global Yields: Key factors for FII flows and rupee movement.
Wrap-up: Caution is advised as global volatility and foreign fund activity continue to guide market direction.
Conclusion: Markets Suffer a Broad-Based Fall
Thursday’s session saw Indian markets retreat on heightened global worries. FIIs resumed heavy selling while shipping stocks and select banking names offered pockets of relief. With earnings season and global economic data ahead, investors should brace for continued volatility and stay stock-specific.