Indian equities ended lower on Tuesday, May 5, tracking weak global cues and profit booking in banking heavyweights, even as mid and small-cap stocks showed resilience.
The Sensex declined 252 points, or 0.33 percent, to close at 77,017.79. The Nifty 50 fell 87 points, or 0.36 percent, to settle at 24,032.80.
Selling pressure in financial stocks weighed on the indices. Key laggards included ICICI Bank, HDFC Bank, Axis Bank and State Bank of India.
Nifty Bank index fell 0.60 percent
Private Bank index declined 0.67 percent
PSU Bank index slipped 0.20 percent
In contrast, broader markets outperformed the benchmarks.
BSE Midcap index rose 0.15 percent
BSE Smallcap index gained 0.20 percent
Supported by these gains, the overall market capitalisation of BSE-listed companies remained steady at ₹467 lakh-crore.
Market sentiment remained cautious amid multiple external pressures:
Elevated crude oil prices amid West Asia tensions
Uncertainty over US-Iran developments
The rupee hitting fresh record lows
Continued foreign institutional outflows
Vinod Nair of Geojit Investments said the market saw volatility as post-election optimism faded and global concerns resurfaced. However, the ongoing earnings season, with results slightly ahead of expectations, offered some support and triggered selective buying.
Technical indicators suggest the market remains under pressure, though early signs of recovery are emerging.
Rupak De of LKP Securities noted that the Nifty has stayed below its 50-day EMA for eight straight sessions, indicating a bearish trend, with the RSI also signalling weak momentum.
However, he pointed out that the index has begun forming higher lows on shorter timeframes, suggesting a possible reversal.
Immediate support: 23,880
Next support: 23,750
Resistance zone: 24,180–24,200
Upside potential: 24,350–24,500 if resistance is crossed
Sudeep Shah of SBI Securities added that a decisive move below 23,880 could intensify weakness, while a sustained rise above 24,200 may trigger a sharper rally.
As many as 34 stocks in the Nifty 50 ended in the red. Major losers included ICICI Bank, Jio Financial Services, Coal India, Tech Mahindra and Axis Bank.
Despite weakness in frontline indices, resilience in the broader market indicates selective buying interest, even as global uncertainties continue to cap upside momentum.
(By arrangement with livemint.com)