Mumbai, May 21: The Indian stock market ended in the red on Thursday, closing slightly lower due to weak global signals amidst ongoing conflicts in West Asia. Both Nifty 50 and Sensex experienced declines as pressure mounted on IT and FMCG stocks.
During the trading session, Nifty 50 fell by 4.30 points or 0.02% to close at 23,654.70, while Sensex dropped by 135.03 points or 0.18% to finish at 75,183.36.
The 30-share BSE Sensex opened at 75,732.42, reaching an intraday high of 75,945.79 and a low of 74,996.78. Meanwhile, the NSE Nifty opened at 23,830.05, hitting a daily high of 23,859.90 and a low of 23,596.60.
In broader markets, the Nifty Smallcap Index recorded a gain of 0.63%, while the Nifty Midcap Index saw a slight decline of 0.04%.
Sector-wise, the most significant declines were observed in Nifty FMCG, Nifty IT, and Nifty Financial Services. In contrast, Nifty Realty and Nifty Cement performed better.
Among the Nifty 50 stocks, Grasim, Indigo, Apollo Hospital, Bajaj Auto, Trent, BEL, HDFC Life, Max Health, Hindalco, and Wipro saw the most gains. Conversely, Bajaj Finance, HUL, Tech Mahindra, Infosys, Bajaj Finserv, Tata Consumer Products, and Bharti Airtel were among the worst performers.
During this session, the total market capitalization of companies listed on the BSE increased from ₹461 trillion to ₹462 trillion, resulting in a profit of approximately ₹1 trillion for investors.
Market experts noted a resurgence in crude oil prices, raising concerns about inflation, currency weakness, and rising costs for companies.
On a sectoral level, IT and FMCG stocks exerted the most pressure on the market. Although there were positive signals from global tech stocks, investors opted to book profits in IT shares following recent gains.
Experts further indicated that investors’ risk appetite remained limited globally. Following the Federal Reserve’s stringent comments, fears grew about sustained high interest rates and bond yields. Additionally, despite the RBI’s efforts, the Indian rupee remains near record lows, raising concerns about foreign investment flows and economic pressure.
According to market analysts, Nifty 50 had a strong start above the crucial level of 23,800 but failed to hold at higher levels. Continuous selling pressure throughout the day led the index to close around 23,650, indicating ongoing selling at upper levels.
Analysts suggest that the levels of 23,700 and 23,800 currently serve as strong resistance for the market. Above this, the 24,000 mark is seen as a significant psychological barrier. On the downside, the range of 23,500 to 23,600 remains critical support. If the market dips below 23,600, further selling pressure could be anticipated.
The momentum indicator RSI (14) is currently around 44, indicating a lack of strong bullish signals in the market, which may continue to trade with a weak outlook in a limited range.
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