Indian benchmark Sensex and Nifty slips on May 19 after a volatile trading session, as investors booked profits at higher levels despite strong gains in IT stocks.
| Index | Price | Change | % Chg |
| Nifty 50 | 23,618.00 | 31.95 | -0.14% |
| Nifty Bank | 53,409.15 | 127.85 | -0.24% |
| Nifty Financial | 25,283.40 | 66.35 | -0.26% |
| BSE SENSEX | 75,200.85 | 114.19 | -0.15 % |
The BSE Sensex erased nearly 550 points from the day’s high before settling 114 points lower at 75,200.85. The Nifty 50 slipped 31.95 points to close at 23,618.
Markets started the session on a positive note, but late selling in banking and heavyweight stocks dragged indices into the red.
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What triggered the late selloff?
The market reversed sharply in the second half of the session mainly because traders started booking profits near key resistance levels while global risk sentiment remained weak.
Here were the biggest triggers behind the late selloff:
- Investors booked profits as the Nifty 50 failed to sustain above the crucial 23,800 zone.
- Weak Asian markets and lower Wall Street futures hurt sentiment globally.
- The Indian rupee slipped to a fresh record low near 96.53 against the US dollar, increasing concerns over foreign fund flows.
- Rising US Treasury yields raised fears that the Federal Reserve may keep interest rates higher for longer.
- Banking and heavyweight stocks came under pressure despite strong gains in IT shares.
Technical analysts also pointed out that the hourly RSI remained in a bearish crossover, signalling weakening momentum during the latter half of the session.
Profit booking near key resistance kept bulls under pressure
The Nifty climbed to an intraday high of 23,782 but failed to sustain above the crucial 23,800 resistance zone.
Analysts said traders turned cautious near higher levels and preferred booking profits ahead of weekly F&O expiry.
“The index faced resistance near the 20 EMA, which triggered profit booking in the latter half of the session,” said Rupak De.
Technical charts also signalled weakness as the Nifty formed a bearish candle with selling pressure visible near resistance levels.
Weak global cues and rupee decline hurt sentiment
Global market weakness also impacted investor confidence.
Asian markets traded lower, while Wall Street futures declined up to 0.6%, signalling weak global risk appetite.
At the same time, the Indian rupee settled at a fresh record low of 96.53 against the US dollar amid rising crude oil prices and higher US treasury yields.
Analysts said rising US bond yields and fears of another Federal Reserve rate hike kept investors defensive.
IT stocks outperformed despite market weakness
Technology stocks remained the biggest support for the market during the session.
The Nifty IT index surged more than 3%, extending its two-day rally to nearly 6%.
Strong buying was seen in:
Infosys emerged as the top gainer on the Sensex, rising over 4.5%.
Banking stocks and heavyweights dragged indices lower
Private banking and consumption stocks remained under pressure throughout the session.
Major losers included:
- Kotak Mahindra Bank
- Titan Company
- UltraTech Cement
- Tata Consumer Products
- Bharti Airtel
The Nifty Bank also closed lower after trading in a narrow range.
Top 5 Stocks Gainers
- Infosys (+4.51%)
- HCLTech (+2.91%)
- Tech Mahindra (+2.59%)
- TMPV (+2.08%)
- TCS (+2.05%)
Top 5 Stocks Losers
- Kotak Mahindra Bank (-2.40%)
- Titan (-1.79%)
- UltraTech Cement (-1.78%)
- Tata Consumer Products (-1.62%)
- Bharti Airtel (-1.40%)
Top 5 Sector Gainers
- Nifty IT (+3.23%)
- Nifty Realty (+1.43%)
- Nifty Media (+1.18%)
- Nifty Consumer Durables (+0.44%)
- Nifty Pharma (+0.42%)
Top 5 Sector Losers
- Nifty Metal (-0.05%)
- Nifty FMCG (-0.03%)
India VIX cools but volatility concerns remain
Today, the volatility index India VIX declined 4.86% to settle at 18.68.
Despite the decline, analysts said volatility remains elevated as long as India VIX stays above the 17 mark.
Daily Market Action
- Advancing shares: 2,150
- Declining shares: 1,109
- 52-week highs: 56
- 52-week lows: 35
- Upper circuit stocks: 110
- Lower circuit stocks: 83
Broader market sentiment remained relatively positive despite weakness in benchmark indices.
What impacted the market today?
Today’s market weakness was mainly driven by:
- Profit booking at higher levels
- Weak global market sentiment
- Record low rupee
- Rising US bond yields
- Resistance near the 23,800 zone on Nifty
Analysts said traders remained reluctant to take aggressive directional positions ahead of expiry.
What impact could this have on investors and traders?
For traders, the market continues to remain in a sideways-to-bearish phase unless the Nifty decisively crosses 23,800.
Analysts see immediate support near 23,400, while 24,000 remains a crucial resistance level based on monthly options data.
For investors, volatility may remain elevated in coming sessions due to global uncertainty, currency weakness, and rising bond yields.
However, strong momentum in IT stocks and broader market participation may continue offering selective opportunities.
