Indian equity benchmarks closed mostly unchanged Monday, May 18 after a strong rebound from intraday lows, aided by a rebound in information technology stocks following last week’s correction due to fear of AI-led disruption. The Nifty 50 opened more than 160 points lower and fell to an intraday low of 23,317.10 during early trade. However, the index rebounded sharply, in a V-shape recovery, as it rose more than 300 points from its intraday low to finish slightly higher. The Nifty 50 closed at 23,649.25, up 6.45 or 0.03 per cent on closing bell.
The Sensex recovered from early losses and closed ahead 77.05 or 0.10 per cent, at 75,315.04. The India VIX index also fell more than 4 per cent to trade below 5, indicating a rise in market volatility caused by global uncertainty.
Crude Oil Prices Stay Elevated Amid Iran Conflict Concerns
Global crude oiprices l remained at high levels as tensions surrounding the Iran conflict continue to raise supply concerns. Brent crude was up about 1 per cent at USD 110.50 per barrel, and U.S. crude was up 1.2 per cent at USD 106.72 per barrel. “Crude oil prices were driving investors to sell their global assets, squeezing the rupee further.”
Futures for September futures crossed the USD 100 mark and December futures touched a record high, showing expectations of a continued supply shortage in the energy market.
Rupee Hits Fresh Record Low Against US Dollar
“The Indian rupee fell sharply against the U.S. dollar, sinking 0.45 per cent to touch a new all-time low of 96.39. The decline came as higher crude oil prices and the cash-striking Iran conflict pushed global bond yields higher, worsening investor sentiment and amplifying concerns for India, the world’s largest crude oil importer,” said Semwal.
IT Stocks Lead Sectoral Gains
Only 3 of the 11 major sectoral indices traded in positive territory.
- The Nifty IT index was the best performing sector, up 2.43 per cent, as all its constituents traded in the green.
- Made possible by IT’s rally, the Nifty Midcap index was up 0.15 per cent, while the Nifty Smallcap 100 index fell 1.26 per cent.
- The Nifty Media index was the worst performing sector, down 2.24 per cent, snapping its two-day winning streak.
Tata Steel, Power Grid, Amber Enterprises Among Major Losers
Tata Steel fell 3.29 per cent after announcing a weaker-than-expected fourth-quarter profit. Power Grid Corporation of India declined by 3.04 per cent on Thursday after posting nearly 10 per cent jump in its profit for March quarter.
Amber Enterprises saw a selloff of 15.61 per cent after the company warned margin pressure after its quarterly earnings released.
Gland Pharma Surges On Strong Quarterly Earnings
Plus side was Gland Pharma which jumped 15.43 per cent after the company reported a net profit of 97 per cent jump for March quarter.
Bharti Airtel was the biggest contributor of Nifty 50’s gains adding a whopping 21.83 points to the index while Infosys was the next biggest contributor with a gain of 17.90 points and ICICI Bank added 10.27 points to the benchmark.
SBI, Tata Steel Weigh Heavily On Nifty
On the downside, biggest impact on the index was State Bank of India which fell by a whopping 21.45 points and Tata Steel followed closely in adding the biggest impact by falling by 12.70 points, with Power Grid Corporation of India adding to the decline by 9.12 points.
Market Breadth Remains Weak Despite Recovery
Breadth remained heavily skewed to the losing side with 941 stocks advanced against 2,382 stocks that were in the negatives across 3,415 stocks traded on NSE. 92 stocks were unchanged. 55 stocks rallied to their 52-week High while 69 fell to their 52-week low. 58 stocks were also locked on Upper Circuit while 213 fell to their Lower Circuit indicating a general weakness.
(With Inputs)
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
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