Indian benchmark indices closed lower on May 19 due to profit booking and global uncertainty. According to reports from LiveMint, the BSE Sensex declined 114 points, or 0.15%, to settle at 75,200.85, while the NSE Nifty 50 slipped 32 points, or 0.14%, to close at 23,618. The decline came amid mixed global signals, lingering uncertainty around the US-Iran conflict, elevated crude oil prices, and continued weakness in the rupee. Despite Brent crude prices falling nearly 2% on growing optimism over a possible US-Iran peace deal, sentiment remained under pressure due to persistent concerns surrounding the Indian currency. Market sentiment is expected to remain fragile, with Gift Nifty trading near the 23,433 mark, up over 127.50 points from the previous close, signalling a negative opening for Wednesday.
The rupee closed at a fresh record low of 96.52 against the US dollar on Tuesday, adding to market concerns. As reported by LiveMint, the Gift Nifty was trading around the 23,448.5 level, a discount of 164 points from the Nifty futures' previous close of 23,612. Regional markets reflected the risk-off sentiment, with Japan's Nikkei declining nearly 1.3% and South Korea's Kospi slipping over 1.6% in early trade. The weakness in global equities intensified after the S&P 500 registered its third consecutive losing session overnight, as rising US bond yields continued to pressure broader risk assets. "Sentiment across Indian markets is expected to remain fragile, with rising energy prices, currency weakness and uncertainty surrounding the Middle East conflict continuing to weigh on investor confidence," said Ponmudi R, CEO of Enrich Money.
Raja Venkatraman, Co-founder of NeoTrader and stock research platform MarketSmith India, recommended five stocks for May 20 amid the cautious market sentiment. According to LiveMint, the recommended stocks include Gujarat State Fertilizers & Chemicals Ltd (buy above ₹179, target ₹198), Varun Beverages Ltd (buy above ₹518, target ₹570), Power Grid Corporation of India Ltd (buy above ₹301, target ₹337), Radico Khaitan Ltd (buy at ₹3,564-3,618, target ₹4,200), and Kirloskar Pneumatic Co. Ltd (buy at ₹1,564-1,588, target ₹1,820).
The recommended stocks show varied technical indicators and risk profiles. Gujarat State Fertilizers has a P/E ratio of 10.41 with support at ₹166 and resistance at ₹210, while Varun Beverages shows a P/E of 62.50 with strong volume of 5.13 million. Power Grid Corporation has a P/E ratio of 14.82 with support at ₹290 and resistance at ₹375. MarketSmith India also recommended Radico Khaitan (P/E 76.04, target ₹4,200) and Kirloskar Pneumatic (P/E 37.70, target ₹1,820), both showing cup-with-handle breakout patterns with specific entry levels and stop-loss recommendations.
