Indian Stock Market Opens In Red As IT, Auto Stocks Face Sell-Off

The Indian stock market began Thursday’s session on a negative note, reflecting global market weakness and early selling pressure in key sectors, particularly information technology (IT) and automobiles.

As of 9:26 AM, the BSE Sensex was down 726.42 points or 0.89%, trading at 80,870.21, while the NSE Nifty dropped 225 points or 0.91%, standing at 24,588.45.

The broader market followed suit, with the Nifty Midcap 100 slipping 307.60 points to 56,312.00 and the Nifty Smallcap 100 down 39.50 points at 17,509.10.

Analysts indicate that technical patterns are pointing to an inside bar setup, suggesting potential directional movement based on breakout levels.

Immediate support lies at 24,600, with a more robust support zone near 24,500.

Should the Nifty breach these levels, analysts warn of increased downside risk, potentially dragging the index towards the 24,300–24,000 range.

On the higher side, resistance is expected at 24,900, with the 25,000 mark seen as a significant psychological barrier.

A sustained breakout above this could pave the way for a bullish rally towards 25,200–25,500, according to Mandar Bhojane, Equity Research Analyst at Choice Broking.

Sectoral & Stock Performance

Within the Sensex pack, Adani Ports and Tata Steel were the lone gainers in early trade.

In contrast, stocks such as IndusInd Bank, Tech Mahindra, PowerGrid, HCL Technologies, Nestle India, and Hindustan Unilever led the losses.

The Nifty Bank index also declined 336.20 points or 0.61%, trading at 54,738.90.

Asian markets mirrored the weak sentiment, with China, Hong Kong, Bangkok, Seoul, and Japan all trading in the red.

Jakarta remained the only regional market in positive territory.

Overnight, Wall Street witnessed steep declines. The Dow Jones Industrial Average closed 816.80 points lower at 41,860.44, a 1.91% fall. The S&P 500 lost 1.61% to close at 5,844.61, and the tech-heavy Nasdaq dropped 1.41% to 18,872.64.

Analysts cited converging economic headwinds and investor caution as major reasons behind the US market sell-off.

Although American indices initially rebounded from session lows, they ultimately reversed into deeper negative territory.

On the institutional front, foreign institutional investors (FIIs) were net buyers, purchasing equities worth ₹2,201.79 crore on 21 May.

Domestic institutional investors (DIIs) also remained positive, acquiring ₹683.77 crore worth of shares.

With global and domestic pressures converging, investors are advised to monitor key technical levels and macroeconomic developments for further cues.

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