Sensex and Nifty News: Markets Slip After Hitting 7-Month High, IT Stocks Drag Indices Lower

Market Performance

Indian equity markets paused their upward momentum on May 16, with benchmark indices ending slightly lower following a strong rally earlier in the week.

• Sensex slipped 200 points or 0.24% to close at 82,330.59
• Nifty 50 dropped 42.30 points or 0.17% to finish at 25,019.80

Despite the mild correction, both indices posted weekly gains:

• Sensex rose 3.6%
• Nifty 50 gained 4.2%

Broader markets outshone the frontline indices:

• Nifty Midcap 100 surged 7.21%
• Nifty Smallcap 100 rallied 9%

This upward momentum in broader indices suggests continued investor interest in mid and smallcap stocks.

Main News

The market dip was primarily due to a pullback in domestic IT stocks, which reacted negatively to fresh U.S. economic data and remarks by Federal Reserve Chair Jerome Powell.

• The Nifty IT index fell nearly 1%, closing at 37,972
• Powell's statement on possibly elevated interest rates created caution among tech investors

However, losses in benchmarks were capped due to strength in other sectors, such as:

• Realty
• Media
• Auto
• Consumer Goods

Defense stocks also maintained strong momentum, with stocks like Cochin Shipyard, Mazagon Dock, and Garden Reach Shipbuilders gaining up to 12.1%, fueled by impressive Q4 earnings.

Company Details

Gainers:

• Bharat Electronics
• Bajaj Auto
• Adani Enterprises
• Tata Consumer
• Eternal

Losers:

• Bharti Airtel
• JSW Steel
• Infosys
• SBI
• HCL Technologies

Noteworthy Stock Moves:

• JSW Infrastructure and Bharti Airtel declined over 2% due to block deals
• RVNL surged 9% on winning a Central Railway order
• Crompton Greaves Consumer Electricals jumped 7% following a 22% jump in Q4 profit
• JSW Energy gained 3% post strong Q4 results

52-Week Highs:

Nearly 80 stocks on the BSE touched their 52-week highs, including:

• Mazagon Dock
• Bharat Dynamics
• Solar Industries
• ICICI Bank
• Max Financial
• APL Apollo

Sectoral Overview

Top Performing Sectors:

• Nifty Realty: +1.7%
• Nifty Media, FMCG, Auto, Oil & Gas: +0.5% to 1%

Underperforming Sectors:

• Nifty IT: -1%
• Nifty Metal and Pharma: Marginal losses

Summary

While Sensex and Nifty took a breather after a strong week, the market mood remains upbeat with substantial weekly gains, midcap and smallcap strength, and broad-based sectoral participation. The correction in IT stocks provided a reality check, but robust action in defense, realty, and auto stocks kept investor sentiment optimistic.

As geopolitical tensions ease and global trade talks show promise, the Indian markets may continue to reflect resilience, especially in the mid and small-cap space.