Indian Stock Market Takes a Breather After Recent Surge

Indian Stock Market Dips After Recent Gains

The Indian stock market experienced a dip on Tuesday, May 13, following a significant rally the previous day. The Sensex, a benchmark index tracking 30 major companies, closed 1,282 points lower at 81,148.22, a drop of 1.55%. Similarly, the Nifty 50, which represents 50 leading companies, fell 346 points to settle at 24,578.35, a decline of 1.39%.

Profit Booking and Global Factors

Experts attribute the market correction to profit booking after the previous day’s sharp gains, which were fueled by easing geopolitical tensions between India and Pakistan and a potential trade deal between the US and China. Vinod Nair, Head of Research at Geojit Investments Limited, noted, “The domestic market witnessed profit booking today, following yesterday’s sharp rally. The relief-driven surge appears to be taking a breather.”

Sectoral Performance

While the benchmark indices declined, mid- and small-cap indices outperformed their larger counterparts. The BSE Midcap index rose 0.17%, and the BSE Smallcap index gained 0.99%. Nifty IT witnessed the most significant drop among sectors, falling 2.42%. Other sectors like FMCG, Auto, and Private Bank also experienced declines, while Media, PSU Bank, and Pharma sectors saw healthy gains.

Notable Stock Movements

Infosys, Eternal, and Power Grid were among the top losers in the Nifty 50 index, while Bharat Electronics, Jio Financial Services, and Hero MotoCorp emerged as the top gainers.

Market Indicators

The advance-decline ratio on the NSE favored advancing stocks, with 1,948 stocks rising, 937 declining, and 74 remaining unchanged. Nearly 200 stocks hit their upper circuits, while 31 hit their lower circuits during the session.

Over 70 stocks achieved their 52-week highs, including APL Apollo Tubes, Aster DM Healthcare, and Choice International, while 30 stocks, including Swiggy and Century Enka, hit their 52-week lows.