Indian equities ended marginally lower on Tuesday, May 19, as investors booked profits in heavyweight stocks amid mixed global cues, concerns over the US-Iran situation, elevated crude oil prices and continued weakness in the rupee.
The Sensex declined 114 points, or 0.15 percent, to close at 75,200.85, while the Nifty 50 slipped 32 points, or 0.14 percent, to settle at 23,618.
Despite the weakness in frontline indices, broader markets outperformed. The BSE Midcap index gained 0.73 percent and the Smallcap index advanced 1.17 percent, reflecting sustained buying interest in broader market stocks after recent corrections.
The decline in benchmark indices was mainly due to profit booking in heavyweight stocks such as HDFC Bank, Reliance Industries and Bharti Airtel.
Meanwhile, technology stocks supported the market. Infosys, HCLTech, Tech Mahindra and Tata Consultancy Services were among the top gainers on the Sensex.
The Nifty IT index jumped 3.23 percent, aided by expectations that rupee depreciation could improve earnings prospects for export-oriented software firms.
Brent crude prices eased about 2 percent amid optimism over a possible easing of tensions between the US and Iran. However, the rupee continued to remain under pressure and closed at a fresh record low of 96.52 against the dollar.
Vinod Nair, Head of Research at Geojit Investments, said domestic indices erased early gains despite initial optimism over a temporary pause in US military action against Iran.
According to him, broader market stocks attracted fresh buying interest after recent corrections, while investors are increasingly worried about inflationary pressures, elevated fuel prices and firm bond yields impacting earnings in the coming quarters.
Supported by gains in mid and small-cap stocks, the total market capitalisation of BSE-listed companies rose above ₹459 lakh-crore from ₹458.4 lakh-crore in the previous session.
Among sectoral indices, Realty and Media gained more than 1 percent each. PSU Bank stocks also advanced, with the Nifty PSU Bank index rising 0.81 percent.
However, banking shares remained weak. The Nifty Bank index fell 0.24 percent, while the Private Bank index declined 0.74 percent.
Shrikant Chouhan of Kotak Securities said the 23,800 level, which coincides with the 50-day simple moving average, remains a crucial resistance zone for the Nifty.
He said a move above 23,800 could push the index towards 23,875–23,900. On the downside, 23,500 remains an important support level, below which the index could slide towards 23,300–23,250.
Rupak De of LKP Securities said the hourly RSI remains in a bearish crossover, indicating weakening momentum.
According to him, the market sentiment is likely to remain tilted towards bears in the short term unless the Nifty decisively crosses 23,800. Immediate support is placed near 23,400.
Sensex: 75,200.85 (-114 points)
Nifty 50: 23,618 (-32 points)
BSE Midcap: +0.73 percent
BSE Smallcap: +1.17 percent
Nifty IT: +3.23 percent
Nifty PSU Bank: +0.81 percent
Nifty Bank: -0.24 percent
Rupee: 96.52/$ (record low)
Brent crude: Down about 2 percent