Stock Market Volatility Continues: Sensex Rebounds After 950-Point Drop, Nifty Hovers Near 25,000

Weak global cues and IT stock losses drag market early on; investors cautious ahead of GDP and IIP data releases.

The Indian stock market witnessed significant fluctuations on Tuesday, with early losses giving way to partial recovery by mid-morning. At 11:52 AM, the BSE Sensex was down by 281.57 points (0.34%), trading at 81,902.32. Similarly, the NSE Nifty had dipped by 78.46 points (0.31%) to reach 24,922.70.

From Green to Red: Market Seesaw in Early Trade

After opening in the green on the first trading day of the week, domestic markets quickly turned bearish on Tuesday. The day began with a negative tone, and the Sensex at one point plummeted by nearly 800 points. However, it managed to recover, briefly moving into positive territory. The Nifty, too, bounced back after falling but hovered just below the 25,000 mark. The trading session remained highly volatile throughout the morning.

IT Stocks and Asian Markets Trigger Decline

The drop came after two consecutive days of gains, primarily due to weak performance in IT stocks and lackluster trends in Asian markets. The 30-share BSE Sensex initially fell 460.38 points to hit 81,716.07. Meanwhile, the Nifty slipped 162.05 points to 24,839.10. The losses deepened, with Sensex down by 627.86 points at one point and Nifty down by 178 points, but both indices gradually stabilized.

Sector-wise Impact: Who Gained, Who Lost?

On the Sensex, major laggards included NTPC, Mahindra & Mahindra, Bajaj Finserv, HCL Technologies, Tata Consultancy Services, Infosys, UltraTech Cement, Axis Bank, and Tata Motors. IndusInd Bank stood out as the sole gainer in early trade.
Foreign Institutional Investors (FIIs) showed some buying interest on Monday, purchasing shares worth ₹135.98 crore, according to exchange data.

Expert Take: Market May Stay Range-Bound

Analysts suggest that investor caution is linked to the upcoming release of April’s industrial and manufacturing production data, along with the first-quarter GDP numbers due later this week. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the market is likely to remain stable near current levels in the near term.

Global Market Snapshot

Asian markets also showed weakness, with South Korea’s KOSPI, Japan’s Nikkei 225, China’s SSE Composite, and Hong Kong’s Hang Seng all trading in the red. U.S. markets were closed on Monday in observance of Memorial Day.

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