Final Trade: Sensex slips 271 pts, Nifty closes at 24,945; IT stocks drag

The Indian share market started the week on a sluggish note with the benchmark indices closing lower on Monday, May 19, as investors switched to profit booking at record levels. The BSE Sensex fell 271.17 points or 0.33 per cent to close at 82,059.42 and the Nifty50 lost 74.35 points or 0.30 per cent to close the session at 24,944.85 — below the critical 25,000 mark.

The index is in a consolidation zone now, and unless it convincingly breaks the 25,000 barrier, it may continue to remain under pressure, said analysts. "The index is in a consolidation phase and is likely to remain so for another two or three sessions. Breaking below 24,750 can lead to a sharp correction. Conversely, above 25,000, the Nifty could make a move to the 25,250–25,350 zone," Rupak De of LKP Securities said.

Top Gainers and Losers

The Information Technology segment suffered the most from the selling pressure. Infosys dipped 1.95 per cent, while Tata Consultancy Services (TCS) dropped 1.20 per cent. Tech Mahindra lost 1.19 per cent as well. The Nifty IT index proved to be the worst sectoral performer of the day, dipping 1.37 per cent.

FMCG, consumer durables, media, and oil and gas stocks also closed in the red, contributing to the weakness in the market. Of the FMCG counters, Asian Paints fell close to 1 per cent.

Protean, Zomato witness steep selloff

In other moves, Eternal (ex-Zomato) fell by about 3 per cent in intraday trade, while Protean eGov Technologies continued stuck in a 20 per cent lower circuit after it missed out on the PAN 2.0 project contract.

Midcap, smallcap stocks defy trend; PSU banks lead

While broader markets exhibited strength despite weakness in frontline indices, the Nifty Smallcap100 index rallied 0.51 per cent, and the Nifty Midcap100 rose by 0.07 per cent.

Within sectors, Nifty Realty and PSU Bank were top gainers, up by 2.25 per cent and 1.50 per cent, respectively. Buying was also seen in auto, metal, financial services, pharma, and healthcare shares.

Top gainers include Power Grid, Bajaj Finance

On the Sensex, Power Grid Corporation led the pack, advancing 1.27 per cent. Bajaj Finance gained 0.91 per cent, NTPC rose by 0.64 per cent, while SBI and HDFC Bank gained 0.32 per cent and 0.17 per cent, respectively.

India VIX climbs almost 5%; gold gains on overseas cues

Market volatility surged as the India VIX index increased 4.89 per cent to 17.36, reflecting greater jitters among traders. Gold prices, however, opened on an upbeat note, boosted by global uncertainty after Moody's cut the US credit rating from AAA to AA1. Middle East tensions and concerns over tariffs also underpinned bullion purchases.

In the coming weeks, attention will continue to be on major US macro data such as PMI prints and house numbers that may shape global market sentiment during the week.