Closing Bell: Sensex Falls 135 Points, Nifty 50 Ends Flat at 23,654 as Rupee Jumped by 0.6% to Day Low

Market Update at 04:08 PM: The Indian stock market ended mostly flat on Thursday, May 21, as benchmark indices erased early gains amid profit booking after reports suggested that the Reserve Bank of India (RBI) is considering measures, including a possible interest rate hike, to stabilise the rupee.

The Nifty 50 opened over 170 points higher and climbed to an Intraday high of 23,859.90 during the session. However, the index later slipped more than 200 points from the day’s high due to selling pressure in select heavyweight stocks. At the close, the Nifty 50 settled marginally lower by 4.3 points, or 0.02 per cent, at 23,654.70.

The Sensex also ended in the red, declining 135.03 points, or 0.18 per cent, to close at 75,135.03. Meanwhile, the India VIX index declined 3 per cent, indicating easing volatility in the market.

Global crude oil prices remained in focus as Brent crude futures stabilised around USD 105 per barrel on Thursday after witnessing a sharp decline of nearly 6 per cent over the previous two sessions. According to Trading Economics, traders remained cautious amid expectations of a possible U.S.-Iran deal that could reopen the Strait of Hormuz and ease supply concerns.

The Indian rupee appreciated 0.6 per cent against the U.S. dollar to trade near 96. According to Reuters, the RBI reportedly intervened through state-run banks by aggressively selling dollars before market opening hours to arrest the rupee’s recent decline.

On the sectoral front, 6 out of the 11 major sectoral indices ended higher. Broader markets delivered a mixed performance, with the Nifty Midcap index declining 0.04 per cent, while the Nifty Smallcap 100 index advanced 0.63 per cent.

The Nifty Realty index emerged as the top sectoral gainer, rising 1.05 per cent and extending gains for the third straight trading session. On the other hand, the Nifty IT index was the worst-performing sector, falling 0.56 per cent for the second consecutive session.

Among individual stocks, Apollo Hospitals Enterprise rose 2.85 per cent to hit a record high after reporting strong quarterly earnings, supported by robust demand for complex medical procedures and growth in its pharmacy and digital health segments.

Eyewear retailer Lenskart Solutions gained 2.39 per cent after posting nearly 46 per cent year-on-year revenue growth in the March quarter.

Grasim Industries surged 6.17 per cent to a record high after its fourth-quarter loss narrowed, aided by strong performance in its core businesses.

Meanwhile, electric two-wheeler manufacturer Ola Electric declined 3.92 per cent after reporting weaker March quarter revenue. Brokerages highlighted pricing pressure and execution-related challenges as concerns for future growth and margins.

Market breadth on the NSE remained positive on May 21. Out of 3,381 stocks traded, 1,910 advanced, 1,374 declined, while 97 stocks remained unchanged.

A total of 95 stocks touched their 52-week highs, whereas 29 stocks hit their 52-week lows. Additionally, 124 stocks were locked in Upper Circuits and 71 stocks hit Lower Circuits during the trading session.

Market Update at 2:25 PM: The Indian stock market erased all its intraday gains on Thursday as selling pressure in IT, FMCG, oil and gas stocks weighed on benchmark indices. Weakness in frontline sectors dragged both the Sensex and the Nifty 50 into negative territory during afternoon trade.

As of 2:00 PM, the Nifty 50 was down 14.55 points, or 0.06 per cent, at 23,661.15, while the Sensex declined 158.74 points, or 0.21 per cent, to 75,171.86.

Despite weakness in the benchmark indices, broader markets remained relatively resilient. The Nifty MidCap index traded 0.03 per cent higher, while the Nifty SmallCap index gained 0.66 per cent, indicating continued buying interest in select mid- and Small-Cap stocks.

Among sectoral indices, the Nifty IT, Nifty FMCG, and Nifty Consumer Durables emerged as the top laggards, putting pressure on the overall market sentiment. On the other hand, the Nifty Realty index outperformed the broader market and traded with gains.

Market Update at 12:50 PM: The Indian stock market traded largely flat in the afternoon session on Thursday, even as global equities gained on hopes of easing geopolitical tensions between the U.S. and Iran.

At 12:28 PM, the Nifty 50 was up 3.55 points, or 0.02 per cent, at 23,671.30, while the Sensex slipped 70.57 points, or 0.09 per cent, to 75,235.25.

Broader markets outperformed the benchmark indices during the session. The Nifty MidCap index gained 0.30 per cent, while the Nifty SmallCap index advanced 0.71 per cent, indicating continued buying interest in mid- and small-cap stocks.

Among sectoral indices, the Nifty Realty index emerged as the top performer. On the other hand, the Nifty IT, Nifty FMCG, and Nifty Consumer Durables indices traded in negative territory, weighing on the overall market sentiment.

Investor sentiment improved globally after U.S. President Donald Trump said his administration was in the final stage of negotiations with Iran, according to a White House Pool report. The development raised expectations of easing tensions in West Asia and a possible reduction in energy supply disruption

Market Update at 09:35 AM: Indian equity benchmark indices opened higher on Thursday, tracking gains in global markets amid optimism over easing geopolitical tensions between the U.S. and Iran.

At around 9:17 AM, the Nifty 50 was trading 154 points, or 0.65 per cent, higher at 23,808.4, while the Sensex gained 498.49 points, or 0.66 per cent, to 75,674.11.

The rally was supported by positive sentiment across broader markets as well. The Nifty MidCap index advanced 0.89 per cent, while the Nifty SmallCap index climbed 0.99 per cent during early trade.

Among sectoral indices, the Nifty Cement and Nifty Realty sectors emerged as the Top Gainers. Buying interest was also visible in the Nifty Media and Nifty PSU Bank indices. However, the Nifty IT index underperformed compared to the broader market.

Investor sentiment improved after U.S. President Donald Trump said his administration was in the final stage of negotiations with Iran, according to a White House Pool report. The development raised hopes of reduced geopolitical tensions in West Asia and eased concerns over potential disruptions in global energy supplies.

Global equities also traded firm following the comments, supporting risk appetite across Asian markets, including India.

Pre-Market Update at 7:48 AM: The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Thursday, May 21, supported by strong global cues. Investor sentiment improved after U.S. President Donald Trump said negotiations with Iran are in the final stages, raising hopes of easing geopolitical tensions.

A sharp decline in U.S. Treasury yields and Japanese government bond yields, along with blockbuster quarterly earnings from NVIDIA, also boosted market sentiment globally. Trend in the Gift Nifty indicates a gap-up start for domestic equities. Gift Nifty was trading around the 23,812 level, up 167 points compared to the previous close of Nifty futures.

Asian markets advanced, while Wall Street rallied overnight, with all three major U.S. benchmark indices gaining more than 1 per cent amid optimism surrounding a possible de-escalation in the U.S.-Iran conflict.

U.S. President Donald Trump stated that negotiations with Iran are nearing completion, although he warned that further attacks remain possible if Tehran does not agree to a deal. Iran also cautioned against renewed military action, keeping geopolitical risks alive.

Minutes from the U.S. Federal Reserve’s April policy meeting showed that most policymakers believe additional tightening may be needed if inflation remains above the Fed’s 2 per cent target.

NVIDIA reported strong first-quarter earnings, with net profit surging to USD 58.3 billion, or USD 2.39 per share, compared to USD 18.8 billion a year earlier. Revenue jumped 85 per cent year-on-year to a record USD 81.62 billion. The company also announced an USD 80 billion share buyback programme.

U.S. Treasury yields declined sharply after optimism emerged over a potential U.S.-Iran peace agreement. The benchmark 10-year Treasury yield fell 9.4 basis points to 4.576 per cent.

Japanese government bond yields also eased for the second straight session. The 10-year Japanese government bond yield declined 3.5 basis points to 2.750 per cent, while the 30-year yield dropped 8.5 basis points to 4.015 per cent.

The U.S. dollar traded below a six-week high. The dollar index remained largely unchanged at 99.128.

Gold prices stayed range-bound amid hopes of easing geopolitical tensions. Spot gold was nearly unchanged at USD 4,543.96 per ounce, while silver prices remained steady at USD 75.96 per ounce.

Crude oil prices rebounded after two consecutive sessions of decline. Brent crude futures rose 0.45 per cent to USD 105.49 per barrel, while U.S. WTI crude traded near the USD 99 mark.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 1.27. On the Put side, significant open interest at the nearest out-of-the-money strike was concentrated at 23,500, followed by 23,400, indicating these levels are likely to act as support for the day. Fresh open interest addition was also seen at 23,400 and 23,500 strikes.

On the Call side, significant open interest addition during the previous session was observed at the 24,500 strike. The highest open interest at the nearest out-of-the-money strike was concentrated at 24,000, indicating immediate resistance near that level.

The Nifty 50 continues to trade within a broad consolidation range of 23,262 to 23,860. Immediate support is placed near 23,500, followed by the day’s low of 23,397. As long as the index sustains above these levels, it may attempt to move towards the upper end of the range.

On the upside, the 50-day moving average near 23,659 remains a key hurdle. A decisive close above 23,860 would confirm a bullish breakout and potentially resume the uptrend. Beyond that, the 20-day moving average near 23,928 could act as the next resistance zone. Until a breakout occurs on either side, traders are likely to witness range-bound movement.

Several major companies are scheduled to announce quarterly earnings on May 21, including ITC, LG Electronics India, Life Insurance Corporation of India, FSN E-Commerce Ventures, Aurobindo Pharma, GAIL (India), Honasa Consumer, Dr Agarwals Health Care, Ashoka Buildcon, Bikaji Foods International, Emami, Engineers India, ICRA, JSW Cement, Max Healthcare Institute, Prestige Estates Projects, Rashtriya Chemicals and Fertilizers, Sun TV Network, VA Tech Wabag, Welspun Corp, and WeWork India Management.

For Thursday’s session, Steel Authority of India and Kaynes Technology India remain under the F&O ban list.

On May 20, Foreign Institutional Investors (FIIs) were net sellers and sold equities worth Rs 1,597.35 crore. Domestic Institutional Investors (DIIs) bought shares worth Rs 1,968.35 crore during the same session.

The Indian stock market ended marginally higher on Wednesday, supported by gains in select index heavyweights. The Sensex gained 117.54 points, or 0.16 per cent, to close at 75,318.39, while the Nifty 50 rose 41 points, or 0.17 per cent, to settle at 23,659.

Wall Street rebounded sharply on Wednesday after three consecutive sessions of losses, led by Semiconductor and technology stocks.

The Dow Jones Industrial Average jumped 645.47 points, or 1.31 per cent, to close at 50,009.35. The S&P 500 climbed 79.36 points, or 1.08 per cent, to 7,432.97, while the Nasdaq Composite surged 399.65 points, or 1.55 per cent, to end at 26,270.36.

Technology and chip stocks led the gains. NVIDIA rose 1.30 per cent, while Advanced Micro Devices rallied 8.10 per cent. Microsoft gained 0.87 per cent, Amazon advanced 2.19 per cent, and Apple added 1.10 per cent. Intel surged 7.36 per cent, while Micron Technology climbed 4.76 per cent. Tesla also gained 3.25 per cent.

Airline stocks witnessed strong buying interest, with Delta Air Lines, United Airlines, Southwest Airlines, and Alaska Air Group rising between 6 per cent and 10 per cent.

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

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