BSE Sensex erased nearly 550 points from the day's high before settling 114 points lower at 75,200.85, while Nifty 50 slipped 31.95 points to close at 23,618 on May 19. The market reversed sharply in the second half of the session as traders booked profits near key resistance levels while global risk sentiment remained weak. According to market reports, late selling in banking and heavyweight stocks dragged indices into the red despite a positive start to the session.
Asian markets traded lower and Wall Street futures declined up to 0.6%, signalling weak global risk appetite. The Indian rupee settled at a fresh record low of 96.53 against the US dollar amid rising crude oil prices and higher US treasury yields. As reported by market analysts, rising US bond yields and fears of another Federal Reserve rate hike kept investors defensive. Brent crude oil prices hovered near $111 per barrel as Trump issued fresh threats to Iran, with the US President saying Washington could act within two to three days if Tehran failed to accept US peace terms.
Industry and manufacturing are absorbing the brunt of the supply shock as energy, logistics, and input costs are compressing margins across chemicals, packaging, textiles, consumer goods, aviation, and transport. According to Systematix, a slowdown in the private capital expenditure revival is a real risk if cash flows remain under pressure for an extended period. The Indian rupee has been the worst performing Asian currency during the period with FPIs dumping Indian stocks worth over ₹27,000 crore in the first half of May, taking the overall outflow to ₹2.2 lakh crore on a year-to-date basis. If the Strait of Hormuz remains closed until September 2026, energy prices spike further, supply chain bottlenecks amplify, said Elara Capital.
The Nifty climbed to an intraday high of 23,782 but failed to sustain above the crucial 23,800 resistance zone, with the hourly RSI remaining in a bearish crossover signalling weakening momentum. According to technical analysis, the chart structure continues to remain the same with 23,800 as resistance and 23,400-23,300 as the support zone. Today, the volatility index India VIX declined 4.86% to settle at 18.68, though analysts said volatility remains elevated as long as India VIX stays above the 17 mark. Traders turned cautious near higher levels and preferred booking profits ahead of weekly F&O expiry.
Technology stocks remained the biggest support for the market during the session, with the Nifty IT index surging more than 3%, extending its two-day rally to nearly 6%. Infosys emerged as the top gainer on the Sensex, rising over 4.5%. However, private banking and consumption stocks remained under pressure throughout the session, while the Nifty Bank also closed lower after trading in a narrow range. Analysts said traders remained reluctant to take aggressive directional positions ahead of expiry, with the market continuing to remain in a sideways-to-bearish phase unless Nifty decisively crosses 23,800.
