Why Did Indian Stock Markets End Lower?
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Synopsis
On May 22, Indian equity markets witnessed a decline driven by weak global cues, particularly from Asian markets. This article delves into the implications of these movements and expert insights on market trends, providing investors with valuable analysis.
Key Takeaways
- Sensex fell by 644.64 points.
- Nifty declined by 203.75 points.
- Market sentiment affected by global cues.
- Support found at 21-DEMA near 24,445.
- Major sectors impacted include IT and Auto.
Mumbai, May 22 (NationPress) The Indian equity markets concluded the trading day lower on Thursday, primarily due to weaker global cues, particularly from the Asian markets, which negatively influenced investor sentiment.
At the end of the day, the Sensex dropped by 644.64 points, representing a decline of 0.79 percent, settling at 80,951.99. Throughout the session, it fluctuated between 80,489.92 and 81,323.24.
In a similar manner, the Nifty also closed lower by 203.75 points, or 0.82 percent, at 24,609.70. “From a technical standpoint, the Nifty created a red candle on the daily chart, indicating potential weakness,” noted Hrishikesh Yedve from Asit C. Mehta Investment Intermediates Ltd.
“Nevertheless, the index found support around the 21-Day Exponential Moving Average (21-DEMA), which is positioned near 24,445. On the upside, 25,000 will serve as a significant resistance level for the index in the short term,” he added.
Among the 30-share index, the biggest losers were predominantly from sectors such as auto and consumer goods.
Prominent companies like Power Grid, Mahindra and Mahindra, ITC, Bajaj Finserv, and HCL Technologies experienced substantial declines.
Conversely, IndusInd Bank topped the gainers on the BSE, rising by 1.82 percent.
It was trailed by Bharti Airtel, which increased by 0.44 percent, and Ultra Tech Cement, which finished the intra-day trading with a gain of 0.10 percent.
In the broader market, both the Nifty Midcap100 and Nifty Smallcap100 indices closed in the negative, decreasing by 0.52 percent and 0.26 percent, respectively.
From a sectoral perspective, there was widespread selling, with the exception of Nifty Media, which managed to remain in positive territory.
The sectors that were hit hardest included IT, Auto, FMCG, Consumer Durables, and Oil and Gas — all of which fell by over 1 percent.
The Nifty FMCG and consumer durables sectors declined by more than 1 percent, while the Nifty IT and Pharma indices fell by 0.87 percent and 0.9 percent, respectively.
The fear gauge, India VIX, decreased by 1.65 percent to close at 17.26, indicating a slight reduction in market volatility.
Despite a marked improvement in India’s PMI in May and a positive fiscal outlook, ongoing uncertainties surrounding trade negotiations and persistent global market fluctuations are expected to keep Indian equities in a consolidation phase in the near future, analysts say.
Point of View
It is crucial to recognize the ongoing fluctuations in the Indian stock market. While recent declines reflect external pressures, including global volatility and trade negotiations, it is essential for investors to remain informed and strategic in their decision-making.
NationPress
08/06/2025
Frequently Asked Questions
What caused the decline in Indian stock markets?
The decline was primarily due to weak global cues, particularly from Asian markets, which impacted investor sentiment.
How did the Sensex and Nifty perform?
The Sensex fell by 644.64 points, while the Nifty declined by 203.75 points during the trading session.
Which sectors were most affected?
Sectors such as IT, Auto, FMCG, Consumer Durables, and Oil and Gas faced significant declines.
What is the outlook for Indian equities?
Ongoing uncertainties around trade negotiations and global market volatility may keep Indian equities in a consolidation phase.
Is there any positive news for investors?
Despite the decline, there was a notable improvement in India’s PMI in May, indicating potential growth.
