MUMBAI, May 27, 2025: Indian equity markets experienced a sharp downturn on Tuesday, May 27, the second trading day of the week, with benchmark indices Sensex and Nifty witnessing significant declines. The S&P BSE Sensex was trading around 81,250, down approximately 1,000 points (▼), while the NSE Nifty 50 index also fell nearly 250 points (▼), hovering around the 24,750 mark.
The market breadth was overwhelmingly negative, with selling pressure seen across most sectors. Out of the 30 constituents in the Sensex, only 4 were trading with gains, while 26 stocks declined. Similarly, on the Nifty 50, 39 shares were in the red, with only 11 advancing.
Market Movers and Sectoral Trends
Among specific stocks, Ultratech Cement was a major laggard, falling 2.50% (▼). Other notable losers included ITC and NTPC, along with nine other stocks, which saw declines of up to 2%. On the other hand, IndusInd Bank bucked the trend, gaining around 3% (▲).
Sector-wise, the NSE IT index was down 0.93% (▼), the Auto index fell by 0.60% (▼), and the Private Bank index shed 0.73% (▼). However, there was some minor positive traction in the Media, Metal, Pharma, and Realty sectors (▲).
Expert Commentary
According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “The market may be entering a consolidation phase. Selling pressure is evident at high valuations.” He also noted, “However, there is a likelihood of buying on dips as mutual funds are sitting on ample cash.”
Global Market Cues
Weakness in Asian markets likely contributed to the negative sentiment in domestic equities.
Asian Markets (Today, May 27)
| Index | Current Level | Change | % Change |
|---|---|---|---|
| Nikkei 225 (Japan) | 37,440 | ~ -100 (▼) | N/A |
| KOSPI (Korea) | 2,631 | -13 (▼) | N/A |
| Hang Seng (Hong Kong) | 23,209 | -73 (▼) | -0.31% |
| Shanghai Composite (China) | 3,335 | -11 (▼) | N/A |
US Markets (Closing on May 23)
The previous closing session for US markets on Friday, May 23, also ended in the red:
- Dow Jones: 41,603 (-256 points) (▼)
- Nasdaq Composite: 18,737 (-188 points, -1%) (▼)
- S&P 500: 5,802 (-39 points, -0.67%) (▼)
FII/DII Activity
Institutional investor activity has been a key factor for the markets:
- On May 26 (Monday), Foreign Institutional Investors (FIIs) made net purchases of ₹135.98 crore in the cash segment, while Domestic Institutional Investors (DIIs) bought shares worth ₹1,745.72 crore.
- For the month of May (till date), FIIs have been net buyers to the tune of ₹12,327.59 crore, and DIIs have shown strong buying with net purchases of ₹36,243.28 crore.
- In April, FIIs’ net buying stood at ₹2,735.02 crore, while DIIs made substantial net purchases of ₹28,228.45 crore.
Recap of Previous Session (Monday, May 26)
The market had a positive start to the week on Monday, May 26. The Sensex climbed 455 points to close at 82,176 (▲), and the Nifty 50 also gained 148 points, settling at 25,001 (▲).
Market breadth was positive on Monday, with 22 of the 30 Sensex stocks advancing. Mahindra & Mahindra, HCL Tech, and Tata Motors were among the top gainers, rising up to 2.17%. Zomato, however, saw a significant decline of 4.55%. On the Nifty, 38 shares advanced while 12 declined. All sectoral indices on the NSE closed higher, with Auto (+1.05%), Metal (+0.94%), IT (+1.02%), and Realty (+0.76%) leading the gains.
Investors are advised to trade with caution amidst the current market volatility.