Indian equity benchmarks experienced a downturn on Thursday, May 15, 2025, with the Sensex falling approximately 350 points and the Nifty dipping below the 24,600 level. This decline follows a period of gains fueled by cooling inflation and progress in U.S.-China trade discussions, leading analysts to suggest a phase of consolidation.
Market Performance and Key Drivers
The BSE Sensex was trading lower by 91.38 points, a 0.11 per cent decrease, sitting at 81,239.18. The Nifty50 was also down, positioned at 24,688.30, which is a decrease of 21.40 points or 0.09 percent.
Mixed cues from global markets and a lack of significant domestic triggers contributed to the muted opening. Broader Asian markets showed little movement, with the MSCI Asia ex-Japan index remaining flat after a 1.5% rise on Wednesday. Wall Street closed mixed overnight, following a strong rally earlier in the week driven by U.S.-China trade truce.
Profit-taking in the last two sessions indicates a potential slowdown in upward momentum at higher levels. Franklin Templeton India anticipates sector rotation and profit booking will keep markets in a consolidation phase in FY26, with global uncertainties and equity supply pressures adding to this expectation.
Sectoral Performance
Nine of the 13 key sectoral indices were in the red at the open, while small- and mid-cap indices remained largely unchanged. Nifty Realty was the top drag, falling 0.53%, followed by Bank and Financial Services. Media and Metal indices experienced gains. On the NSE, 12 sectoral indices declined, and three advanced out of 15, with Nifty Oil & Gas declining the most and Nifty Defence rising the most.
Top Stocks
On the BSE Sensex, only seven stocks were trading higher. Key gainers included Adani Ports (up 1.14%), Tata Motors, Tech Mahindra, Bharti Airtel, and Tata Steel. Top losers were led by IndusInd Bank (down 0.91%), Power Grid, Sun Pharma, Kotak Mahindra Bank, and Eternal.
On the Nifty50, 14 stocks were trading higher, while the rest declined. JSW Steel led the gains (up 2.63%), followed by Hero MotoCo, Adani Ports, Shriram Finance, and Tech Mahindra. Dr. Reddy's led the losses (down 1.16%), followed by IndusInd Bank, Power Grid, ONGC, and Sun Pharma.
IndusInd Bank
IndusInd Bank was a notable underperformer, with its stock dropping by 2%. IndusInd Bank's share price traded at ₹781.35. Over the past month, investment interest in IndusInd Bank Ltd shares has dropped by -28.32%, with search interest decreasing by -20%, reflecting a downward trend in search activity. Technical analysis of the stock suggests a bearish outlook.
Analysts have provided varied recommendations for IndusInd Bank, with 45% suggesting a 'BUY' rating. The median target price for the stock is ₹924.29 in 12 months, with high and low estimates of ₹1707.0 and ₹600.0, respectively.
Rupee and Commodities
The rupee depreciated in early trade, falling 23 paise to 85.55 against the US dollar.
Expert Views and Predictions
Analysts anticipate the market to remain in consolidation mode, with sector rotation and profit booking dominating market action. Nifty faces strong resistance at 24,900 and finds support at 24,550 and 24,400. Derivatives data indicates a mild bearish bias due to aggressive call writing, which is pressuring the upside.
Hrishikesh Yedve from Asit C. Mehta Investment Interrmediates noted that, in the short term, 24,378 will act as key support for Nifty 50, while 25,000 will serve as a stiff hurdle. According to Bajaj Broking Research, the Nifty 50 index is expected to hold above the same and extend its uptrend toward 25,200-25,300.
Global Market Influences
Global cues remain mixed. S&P 500 futures fell 0.2% as of 9:15 a.m. Tokyo time; Japan's Topix fell 0.6%; Australia's S&P/ASX 200 fell 0.2%; Euro Stoxx 50 futures fell 0.2%. U.S. futures, however, turned positive in evening trade, potentially providing supportive cues for global equities, including Indian markets.
