Nifty Slides for Third Day Amid Pressure from Banking and Auto Stocks; Market Breadth Turns Weak

The Nifty 50 slipped 1.05 per cent and the Sensex shed 1.06 per cent, weighed down by sharp declines in banking and auto counters.

Market Update at 4:00 PM: Indian equity benchmarks closed in the red on Tuesday, May 20, extending their losing streak to a third straight session. The Nifty 50 slipped 1.05 per cent and the Sensex shed 1.06 per cent, weighed down by sharp declines in banking and auto counters. Despite some support from IT and metal shares, market sentiment remained cautious in the absence of new triggers, with investors keeping an eye on updates related to India-U.S. trade relations.

In a global development, China, a key consumer of metals, reduced its benchmark lending rate for the first time since October to counter the impact of trade friction with the U.S. As a result, metal majors like Tata Steel and Hindalco saw gains of 0.7 per cent, ranking among the top performers on the Nifty 50.

Information technology stocks staged a partial recovery after a weak previous session caused by Moody's downgrade of the U.S. credit outlook. However, despite midday gains, the Nifty IT index eventually closed lower.

Pfizer surged over 11 per cent on the back of an 85 per cent jump in its fourth-quarter profit, driven by a one-time gain from property sales, making it the top gainer on the Nifty 500. Real estate firm DLF also rose 6 per cent after reporting strong demand in the premium housing segment, which boosted its quarterly earnings.

The Nifty Auto index was the worst-performing sector, dropping 2.2 per cent in its steepest single-day fall in a month. Bajaj Auto led the losses, sliding more than 2.5 per cent. In terms of index contribution, HDFC Bank, ICICI Bank, and Mahindra & Mahindra were among the biggest drags on the Nifty 50, while Coal India, ONGC, and Infosys helped cushion the fall to some extent.

The broader markets also ended in negative territory. The Nifty Midcap 100 declined 1.62 per cent, and the Nifty Smallcap 100 dropped 0.94 per cent. Sectoral indices largely closed in the red.

Market breadth was negative, with 1,974 stocks declining against 915 advancing on the NSE. A total of 49 stocks touched fresh 52-week highs, while 18 stocks slipped to 52-week lows. Meanwhile, 117 stocks hit upper circuits, and 55 were stuck in lower circuits.

Market Update at 2:30 PM: The BSE Sensex climbed 1.64 per cent to 82,674, while the NSE Nifty 50 advanced 1.77 per cent to settle at 25,087. After a volatile start, markets gained momentum as investor sentiment improved on hopes of a U.S.-India trade agreement. Optimism grew following former U.S. President Donald Trump's statement that India had proposed a zero-tariff trade deal.

Among the key contributors to the Nifty's upward move, Reliance Industries led the gains with a 0.22 per cent rise, adding 53.77 points to the index. ICICI Bank and Infosys also supported the rally, contributing 33.86 points and 32.95 points, respectively. On the flip side, Asian Paints remained flat with a marginal decline of 0.54 points. Cipla and Kotak Mahindra Bank were among the top draggers, shaving off 2.14 and 3.45 points from the index, respectively, each down by 0.01 per cent.

As of 15 May 2025, 14:09 IST, a total of 2,827 stocks were traded on the NSE. The market breadth remained positive with 1,900 stocks advancing, 856 declining, and 71 remaining unchanged. Notably, 54 stocks touched their 52-week high, while 11 hit a 52-week low. Additionally, 162 stocks were locked in the upper circuit, whereas 20 stocks were stuck in the lower circuit.

Market Update at 12:30 PM: Indian markets traded flat in early hours on Tuesday, with benchmark indices showing minimal movement due to the absence of fresh catalysts. This marked the third consecutive session of range-bound activity, as investors awaited developments in the ongoing India-U.S. trade discussions.

As of 12:20 p.m. IST, the Nifty 50 inched down by 0.03 per cent to 24,861, while the BSE Sensex edged lower by 0.35 per cent to 81,780.

Last week, U.S. President Donald Trump stated that India had proposed a trade agreement offering zero tariffs on American products.

Out of 13 key sectoral indices, seven were in the red. However, metal and IT stocks outperformed. The broader Small-Cap index gained 0.3 per cent, while the Mid-Cap index slipped 0.1 per cent.

Metal stocks gained momentum after China, a major consumer of metals, reduced its benchmark lending rates for the first time since October to cushion the economic impact of its trade conflict with the U.S. Tata Steel and Hindalco advanced 1.6 per cent and 1 per cent, respectively, featuring among the top Nifty 50 performers.

IT stocks also rebounded by around 1 per cent, recovering ground lost in the prior session following Moody’s downgrade of the U.S. credit rating.

Among notable stock moves, Pfizer surged 11 per cent, topping the Nifty 500 list after reporting an 85 per cent jump in fourth-quarter profit, largely due to a one-time gain from property divestment. Real estate firm DLF climbed 5 per cent, supported by robust demand in its premium housing segment that boosted its Q4 earnings.

Market Update at 10:20 AM: India's key stock indices opened on a flat note Tuesday, with early gains in information technology stocks balancing out declines across most other sectors. 

As of 9:20 a.m. IST, the Nifty 50 edged up 0.12 per cent to 24,975.85, while the BSE Sensex moved 0.15 per cent higher to 82,185.43. Out of the 13 major sectoral indices, 10 were trading in the red. 

Broader indices like the Nifty Small-cap and Mid-cap slipped around 0.3 per cent each. Meanwhile, IT stocks rebounded by nearly 1 per cent, recovering much of the ground lost in the previous session following Moody's downgrade of the U.S. credit rating.

Pre-Market Update at 8:00 AM: Indian stock markets are expected to open on a strong note today, May 20, 2025, as suggested by cues from the GIFT Nifty. At 7:30 am, the GIFT Nifty was up 82 points, indicating a start near the 25,073 mark.

Asian markets rebounded after four straight sessions of losses, drawing inspiration from Wall Street’s continued upward momentum, where the S&P 500 is inching toward bull market territory. Meanwhile, discussions between India and the U.S. over a phased trade agreement are also underway, with hopes for an interim deal by July.

On the domestic front, investors will keep a close eye on company-specific movements, as several major firms are set to release their March quarter results today. These include Hindalco Industries, United Spirits, Dixon Technologies, Solar Industries, Max Healthcare, Torrent Pharma, Zydus Lifesciences, and NHPC.

In terms of institutional activity, both foreign and domestic institutional investors were net sellers on Monday. FIIs offloaded shares worth Rs 525.95 crore, while DIIs sold equities amounting to Rs 237.93 crore.

Markets closed lower on Monday, weighed down by IT stocks following Moody’s downgrade of the U.S. economy. The Sensex fell 271.17 points to close at 82,059.42, and the Nifty 50 dropped 74.35 points, ending at 24,945.45.

In the U.S., the markets extended their gains, closing higher for a sixth straight session. Easing tensions with China helped boost sentiment. The Dow rose by 137.33 points to 42,792.07, the S&P 500 added 5.22 points to 5,963.60, and the Nasdaq inched up by 4.36 points to 19,215.46.

The U.S. dollar held steady early Tuesday, pausing after a week of decline. As of 7:24 am IST, the dollar index stood at 100.25. Gold prices saw a minor dip of 0.22 per cent in early Asian trade, likely a technical pullback following Monday’s 1.5 per cent jump. However, concerns around the U.S. fiscal deficit may support continued interest in gold.

Crude oil prices edged higher amid uncertainty around U.S.-Iran nuclear talks. Brent crude was up 0.15 per cent at USD 65 per barrel, while U.S. crude gained 0.32 per cent, settling at USD 62.08.

For today, Titagarh Rail Systems, Hindustan Copper and Mannapuram Finance continue to remain under the F&O ban list.

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