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Date: 19-may-2025 | By: Nuztrend Team
Indian equity benchmarks closed in the red on Monday, May 19, as renewed pressure on the IT sector dragged the indices lower. The BSE Sensex declined by 270 points to settle at 81,020, while the NSE Nifty slipped 85 points to close at 24,930—falling below the key 24,950 support level.
The downturn was primarily led by a sharp selloff in large-cap technology stocks, with investors reacting to disappointing earnings guidance and global headwinds in the sector. Infosys, TCS, Tech Mahindra, and Eternal Technologies were among the top losers of the day.
The Nifty IT index was down over 2% intraday, reflecting broader bearish sentiment in the tech space. Analysts pointed to soft global demand and margin pressures as key concerns, particularly for export-heavy firms.
Most IT majors also faced profit booking pressure after a sustained run-up in the previous quarter. “We’re seeing sector rotation now, with money moving out of defensives like IT and into rate-sensitive stocks,” said Anupam Shah, head of equity strategy at a Mumbai-based brokerage.
While IT weighed on the indices, there was some support from FMCG and auto sectors. Nifty FMCG ended marginally higher, aided by gains in Hindustan Unilever and ITC, while Nifty Auto stayed flat as investors assessed global supply chain updates.
Banking and financial stocks showed mixed trends, with ICICI Bank and Axis Bank staying in the green, while HDFC Bank and Kotak Bank saw minor declines.
Weak global cues further added to the cautious tone. Asian markets closed mixed, while U.S. futures pointed to a muted open. Investors are closely watching for upcoming U.S. Fed commentary and inflation data due later this week.
Foreign Institutional Investors (FIIs) were net sellers for the second consecutive session, offloading ₹1,240 crore worth of equities. Meanwhile, domestic institutional investors (DIIs) bought stocks worth ₹890 crore, offering some cushion to the market.
Technical analysts warn of near-term volatility if Nifty fails to hold above 24,900. “A break below 24,850 could trigger further downside toward 24,700 levels,” said Manisha Gupta, Technical Analyst at FinAxis. “We recommend cautious positioning until the IT sector stabilizes.”
On the upside, resistance is seen around 25,150. Traders are advised to keep tight stop-losses and focus on fundamentally strong sectors showing resilience.
With the tech sector under pressure and global uncertainty lingering, Indian stock markets kicked off the week on a cautious note. While long-term fundamentals remain intact, short-term turbulence—especially in the IT space—could continue to weigh on sentiment in the days ahead.
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