Stock Market Ends Lower, Sensex Drops 114 Points as Nifty 50 Closes at 23,618

Indian Stock Market Declines Amid Mixed Global Cues and US-Iran Conflict Concerns

The Indian stock market benchmarks, the Sensex and the Nifty 50, ended lower on Tuesday, May 19, due to profit booking amid mixed global cues and persisting concerns over the US-Iran conflict, elevated crude oil prices, and the rupee's weakness. The Sensex lost 114 points, or 0.15%, to close at 75,200.85, while the Nifty 50 ended at 23,618, down 32 points, or 0.14%.

However, the mid and small-cap segments outperformed, with the BSE 150 Midcap index rising by 0.73%, and the BSE 250 Smallcap index jumping 1.17%. The fall in the benchmark could largely be attributed to profit-taking in select heavyweights, including HDFC Bank, Reliance Industries, and Bharti Airtel.

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Brent Crude dropped 2% as hopes about a potential US-Iran peace deal grow stronger. However, the rupee's weakness remains a pressing concern for the market. As per PTI, the provisional figures showed the domestic currency closed at a fresh record low of 96.52 against the US dollar on Tuesday.

Despite an initial upswing fueled by optimism surrounding a temporary halt in U.S. military operations against Iran, domestic equity indices pared early gains to close in the red. Mid and small-caps quietly outshone their large-cap peers, drawing renewed buying interest after a meaningful correction.

Thanks to gains in the mid and small-cap segments, the overall market capitalisation of BSE-listed firms rose to over ₹459 lakh crore from ₹458.4 lakh crore in the previous session. Kotak Mahindra Bank, UltraTech Cement, Titan, Bharti Airtel, and Sun Pharma were the top losers in the Sensex, while technology stocks such as Infosys, HCL Tech, Tech Mahindra, and TCS were among the top gainers in the index.

The Nifty IT index jumped 3.23%, with IT stocks registering robust advances on the back of anticipated tailwinds from an accelerating rupee depreciation and compelling valuations. Nifty Realty and Media jumped more than 1% each. Nifty Bank fell 0.24%, while the Private Bank index dropped 0.74%. However, Nifty PSU Bank jumped 0.81%.

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According to Shrikant Chouhan, the head of equity research at Kotak Securities, 23,800, or the 50-day SMA, would act as a crucial resistance zone for Nifty, while 23,500 would be the key support. Above 23,800, the market could move to 23,875-23,900. Conversely, if the index falls below 23,500, the chances of hitting 23,300-23,250 would increase.

Rupak De, Senior Technical Analyst at LKP Securities, pointed out that the hourly RSI remains in a bearish crossover and continues to trend lower, indicating weakening momentum. Sentiment is likely to remain tilted in favour of the bears in the short term. The 23,800 zone continues to act as a crucial resistance level, and unless the index decisively moves above it, sellers may regain control at any point. On the downside, immediate support is placed at 23,400, below which selling pressure could intensify further.