Indian equity markets witnessed a significant downturn on Tuesday, May 13, 2025, as investors engaged in profit booking following the previous session’s rally. The BSE Sensex plunged 1,281.68 points, or 1.55%, to close at 81,148.22, while the NSE Nifty 50 declined 346.35 points, or 1.39%, settling at 24,578.35 .
Intraday Movement: Volatility Returns After Record Rally
After Monday’s impressive gains driven by easing geopolitical tensions and a truce in the US-China trade war , markets opened on a cautious note. The GIFT Nifty indicated a negative start, down by 160 points . Throughout the day, indices remained under pressure, reflecting investor concerns over sustainability of the rally.
Top Gainers and 🔽 Top Losers
Top Gainers:
BSE Ltd: Shares rose 4.4% to ₹7,265 ahead of the record date for a ₹23 per share dividend .
Top Losers:
Aether Industries: Plummeted 6% to ₹757.25 after promoters initiated a 6.77% stake sale via Offer for Sale .
Sector-Wise Performance
IT, Auto, and Private Banks: Led the decline due to profit booking.
Pharmaceuticals: Declined following U.S. President Trump’s announcement on prescription drug price cuts, raising concerns over reduced profit margins .
Metals: Continued to gain from the previous session’s rally, buoyed by the US-China trade agreement easing economic concerns .
Global Cues: Mixed Signals
Global markets presented mixed signals. While the easing of geopolitical tensions had previously boosted investor confidence , concerns over U.S. policy changes, particularly in the pharmaceutical sector, introduced new uncertainties .
FII & DII Activity
Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) showed varied activity. While specific figures for the day are awaited, the market’s decline suggests net selling by FIIs, a common trend during profit booking phases.
Expert Commentary & Technical Outlook
Technical analysts observed the formation of a bearish harami pattern on the Nifty 50 daily chart, indicating a potential pause in the ongoing bullish trend. Immediate resistance is identified at 24,800, with support around 24,400 . Despite the day’s decline, the broader trend remains positive, with expectations of a bounce-back from key support levels.
Outlook for May 14, 2025
As markets digest the recent volatility, investors are advised to monitor global cues and sector-specific developments. The upcoming sessions will be crucial in determining whether the indices can sustain their upward trajectory or if further consolidation is on the horizon.
Disclaimer: The information provided is for educational purposes only and should not be construed as investment advice. Investors are advised to consult financial experts before making investment decisions.
