Indian benchmark indices slipped on May 16 with Sensex down 200 points and Nifty near 25,000 due to a pullback in IT stocks. Gains in realty, media, auto, and defence limited losses.
The Indian stock market witnessed a slight pullback on May 16, with the Sensex falling 200 points to close at 82,330 and the Nifty 50 index ending near the 25,000 mark at 25,019. The decline was primarily driven by a sharp correction in technology stocks, which had surged in recent sessions.
Market Overview
After hitting a seven-month high in the previous session, the market took a pause as investors booked profits from IT sector gains. The Nifty 50 slipped 42 points, or 0.17%, while the Sensex dropped 0.24%. Despite this correction, both indices ended the week with solid gains of over 4%, reflecting underlying strength in the market.
Sectoral Performance
While technology stocks faced pressure, other sectors provided support and limited the overall market losses:
- Realty, media, auto, and consumer goods stocks showed robust buying interest.
- Defence stocks stood out with significant gains. Companies like Cochin Shipyard, Mazagon Dock Shipbuilders, and Garden Reach Shipbuilders rallied up to 12.1% on strong quarterly results and positive market sentiment.
- The Nifty Midcap 100 surged 7.21% for the week, while the Nifty Smallcap 100 recorded an impressive 9% rally, highlighting broad-based market participation beyond the large caps.
The recent profit booking in IT stocks is seen as a healthy correction after the sector’s recent rally. Market experts suggest that the robust performance in other sectors, especially defence, real estate, and consumer goods, reflects growing investor confidence in domestic-focused companies amid global uncertainties.
Investors will be watching for upcoming corporate earnings and macroeconomic data, which could influence the market direction in the near term.
