Nifty, Sensex End Two Day Winning Streak; Mid & Small Caps Stay Resilient

The Nifty 50 slipped 0.7 per cent, while the Sensex dropped over 600 points to close near 81,550. Similarly, the Nifty Bank index shed 219.20 points, or 0.39 per cent, finishing the session at 55,351.

Market Update at 4:00 PM: On Tuesday, May 27, Indian benchmark indices ended their two-day winning run on a negative note. The Nifty 50 slipped 0.7 per cent, while the Sensex dropped over 600 points to close near 81,550. Similarly, the Nifty Bank index shed 219.20 points, or 0.39 per cent, finishing the session at 55,351.

Despite the decline in frontline indices, the broader market held up. Both the Nifty Mid-Cap 100 and Small-Cap 100 closed slightly higher — up by 0.10 per cent and 0.15 per cent, respectively — defying the overall weak sentiment.

Trading activity was heightened, with the total volume of Nifty 50 stocks hitting 52.56 crore shares — the highest single-day volume since April 7, 2025, when it touched 64.71 crore.

Currency markets also reflected weakness. The Indian rupee depreciated by 0.3 per cent, settling at 85.33 against the US dollar, driven by a stronger greenback globally and higher month-end dollar demand from importers. Other Asian currencies also weakened amid a broader risk-off environment.

In sectoral action, FMCG stocks were under pressure. The Nifty FMCG index dropped 0.88 per cent, weighed down by a more than 2 per cent fall in ITC shares.

Among Nifty’s top contributors, IndusInd Bank, Sun Pharma, and Adani Ports added 3.64, 2.14, and 0.78 points, respectively. On the flip side, ICICI Bank (-26.78 points), ITC (-21.35 points), and HDFC Bank (-16.53 points) pulled the index lower.

Market breadth remained neutral. Out of 2,955 NSE-listed stocks, 1,412 advanced, 1,462 declined, and 81 remained flat. Additionally, 42 stocks touched their 52-week highs, while 13 hit new 52-week lows. Upper circuit was hit by 101 stocks, and 51 stocks hit their lower circuits.

Market Update at 12:30 PM: On Tuesday, Indian equity indices slipped in early trade, led by declines in financial and IT stocks amid weakness in regional markets and widespread profit booking. As of 12:13 p.m. IST, the Nifty 50 dropped 0.18 per cent to 24,956, while the BSE Sensex was down 0.2 per cent at 82,015.

The investors caution following the Nifty’s recent close above the 25,000 mark, a level that has triggered profit booking over the past few weeks. 

All 13 key sectoral indices were trading in the red. Major pressure came from financial and IT stocks, each declining around 1 per cent. Broader indices also saw modest losses, with mid-cap and small-cap indices slipping 0.3 per cent and 0.1 per cent, respectively.

On the domestic front, investors are watching for key events, including India’s Q4 GDP data and the minutes of the U.S. Federal Reserve’s May meeting, along with the upcoming interest rate decision by the Reserve Bank of India next week.

In specific stock movements, InterGlobe Aviation declined nearly 3 per cent after its co-founder Rakesh Gangwal offloaded shares worth USD 1.36 billion. Brainbees Solutions, the parent company of FirstCry, dropped over 4 per cent after reporting a higher year-on-year loss in the fourth quarter.

Market Update at 10:20 AM: The BSE Sensex dropped by 0.9 per cent to settle at 81,451, while the NSE Nifty 50 also slipped 0.9 per cent, closing at 24,786. The decline came amid weakness in regional markets and was further pressured by a fall in major IT stocks.

The broader market showed a mixed trend in the opening session. While the NIFTY Smallcap 100 index edged up by 0.12 per cent, the NIFTY Midcap 100 slipped slightly by 0.06 per cent.

On the sectoral front, Nifty IT recorded the steepest decline, falling by 0.96 per cent. Other major laggards included Nifty Private Bank, which was down 0.80 per cent, followed by Nifty FMCG (-0.65 per cent), Nifty Auto (-0.63 per cent), and Nifty Oil and Gas (-0.56 per cent).

Pre-Market Update at 8:00 AM: Indian equity markets are expected to open on a flat-to-cautious note on Tuesday, May 27, amid mixed global cues. As of 7:22 am, the GIFT Nifty hovered around 25,038, up just 11 points, indicating a subdued beginning to the trading session.

Asian indices traded unevenly, reflecting investor hesitation amid renewed trade concerns. Meanwhile, U.S. stock futures rose after signs of easing trade frictions between the European Union and the U.S., helping boost sentiment slightly.

Domestic market action is expected to remain driven by company-specific developments, as a slew of Q4 results are due today. Major names scheduled to report include Life Insurance Corporation of India, Bosch, Info Edge India, NMDC, Bharat Dynamics, Gujarat Fluorochemicals, Medplus Health Services, Minda Corporation, EID Parry, Hindustan Copper, Techno Electric, ITI, Procter & Gamble Hygiene and Health Care, and NMDC Steel.

On May 26, Foreign Institutional Investors (FIIs) remained net buyers with purchases worth Rs 135.98 crore. Domestic Institutional Investors (DIIs) also added to their holdings, infusing Rs 1,745.72 crore into equities.

Benchmark indices extended their gains on Monday, marking a second consecutive session in the green. The Sensex climbed 455.37 points to settle at 82,176.45, while the Nifty 50 advanced 148 points to close at 25,001.15.

Falling dollar index levels, now at a one-month low, may encourage further FII inflows into Indian equities. Combined with solid domestic fundamentals and stable global cues, the near-term outlook remains constructive.

On Tuesday morning, Asian stocks offered mixed signals. Japan’s Nikkei 225 declined 0.24 per cent, while the Topix index was flat. South Korea’s Kospi fell 0.47 per cent, and the Kosdaq remained steady. Hong Kong’s Hang Seng opened in the red.

U.S. markets remained closed on Monday due to Memorial Day. However, futures pointed higher following the U.S. administration’s decision to delay tariffs on EU imports, which lifted global risk sentiment.

The U.S. dollar index continued its decline for the third straight session, falling 0.1 per cent, as investors remained wary of U.S. fiscal concerns. Crude oil prices stayed largely unchanged; Brent was down slightly to USD 64.78 per barrel, and WTI futures dipped to USD 61.54. Gold prices inched higher by 0.1 per cent to USD 3,344.36 per ounce, supported by the weakening dollar and ongoing fiscal uncertainties.

For today, Titagarh Rail Systems, Dixon Technologies, RBL Bank and Mannapuram Finance continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.