Sensex Falls Over 700 Points; Nifty Slips Below 25,000 As Market Opens In Red

The Indian stock market opened lower on Tuesday, weighed down by weak cues from Asian markets and broad-based selling across key sectors such as information technology (IT), automotive, financial services, and pharmaceuticals.

By 9:28 AM, the BSE Sensex was down 747.69 points or 0.91 per cent at 81,428.76, while the NSE Nifty declined 204.10 points or 0.82 per cent to trade at 24,797.05.

The downward momentum reflected investors’ cautious stance amid mixed global signals.

The Nifty Bank index fell 366.95 points, or 0.66 per cent, to 55,205.05. Meanwhile, the Nifty Midcap 100 saw a marginal drop of 4.65 points or 0.01 per cent to 57,062.60.

Conversely, the Nifty Smallcap 100 index bucked the trend, gaining 36.60 points or 0.21 per cent to 17,744.40.

Among individual stocks, major Sensex components such as NTPC, Mahindra & Mahindra, HCL Technologies, Tech Mahindra, Infosys, and Tata Consultancy Services (TCS) were notable losers.

IndusInd Bank stood out as the sole gainer in the pack.

Technical Outlook & Expert Views

From a technical perspective, analysts observed that the Nifty has regained some momentum after decisively breaking out from its recent consolidation range of 24,500 to 25,000 points.

Devarsh Vakil, Head of Prime Research at HDFC Securities, commented, “Immediate resistance is now seen at 25,207, derived from the 76.4 per cent Fibonacci retracement of the entire fall from 26,277 to 21,743. On the downside, 24,800 could offer immediate support for the Nifty.”

Market experts also pointed to a notable trend in Systematic Investment Plan (SIP) flows, highlighting that investors are staying invested for longer durations compared to previous periods.

This, they said, provides an underlying support to the market despite short-term volatility.

Asian markets largely traded in the red on Tuesday, with Bangkok, Seoul, China, Hong Kong, and Japan all witnessing declines. Jakarta was the only major Asian index trading in positive territory.

In the United States, markets remained closed on Monday in observance of Memorial Day.

During the last trading session on Friday, US indices ended lower: the Dow Jones Industrial Average closed at 41,603.07, down 256.02 points or 0.61 per cent; the S&P 500 fell 39.19 points or 0.67 per cent to 5,802.82; and the Nasdaq dropped 188.53 points or 1.00 per cent to 18,737.21.

On the institutional front, foreign institutional investors (FIIs) were net buyers, purchasing equities worth ₹135.98 crore on 26 May.

Domestic institutional investors (DIIs) showed stronger demand, buying shares valued at ₹1,745.72 crore, suggesting continued domestic confidence despite near-term volatility.

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