Sensex down 300 pts, Nifty below 25,000 as IT, bank stocks fall; small, midcaps outperform

Laggards on the index included Bharti Airtel, IndusInd Bank, SBI, HCL Tech, and Infosys.

Benchmark indices Nifty and Sensex took a breather on Thursday, ending a two-day winning streak as investors locked in profits after Wednesday’s sharp rally. However, the action stayed alive in the broader market, with mid- and small-cap indices extending their winning streak to a fifth straight session, once again stealing the spotlight from the frontline peers.

At about 9:45 am, the Sensex was down 267.33 points or 0.32 percent at 82,263.41, and the Nifty was down 66.40 points or 0.26 percent at 24,995.70. About 2128 shares advanced, 854 shares declined, and 130 shares unchanged.

Yesterday, after a choppy start, bulls made a powerful comeback on Dalal Street, propelling the Nifty past the 25,000 mark for the first time since October 2024, ending a 141-session wait. Furthermore, in Doha, US President Donald Trump said India had offered a zero-tariff trade deal to the United States, boosting the sentiment further.

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"With results mostly behind us, the element of uncertainty has reduced. Furthermore, easing border tensions and a possible US-India trade agreement have created a calm environment for investors," Rajesh Palviya, Head of Technical Research at Axis Securities, said in a conversation with Moneycontrol. He added that FIIs turning net buyers and cooling inflation, which gives the RBI more room to cut rates, is also a big positive for the markets.

Sectorally, Nifty Energy and Consumer Durables rose 0.65 percent and 0.55 percent, respectively, while Realty, Oil & Gas, Metal, Auto, and PSU Bank indices opened with marginal gains. On the flip side, Nifty IT slipped 0.31 percent, Pharma dropped 0.29 percent, and the Bank indices edged lower by around 0.2 percent each. The India VIX, a gauge of market volatility, eased 2 percent to 16.5.

Also read: IndusInd Bank shares fall 4% as brokerages slash earnings forecast on fresh accounting issues

IndusInd Bank shares crashed 4 percent in the morning as brokerages turned more cautious after the lender disclosed two new accounting lapses. Analysts have not only downgraded the stock but also flagged sharp cuts to earnings estimates for FY25 through FY27. CLSA downgraded the stock to 'hold' from 'buy' and slashed the target price to Rs 780. The brokerage has slashed its profit after tax (PAT) forecast for IndusInd Bank by 22 percent for FY25.

Airtel shares were down 3 percent after Singapore-based Singtel gears up to pare its stake in the telecom giant through its investment arm, Pastel. As per CNBC TV-18, Pastel is expected to offload around 0.8 percent of its holding in Bharti Airtel via the transaction. The floor price has been set at Rs 1,800 per share—implying a discount of 3.6 percent to the stock’s closing price on Thursday.

Shares of LIC Housing Finance Ltd fell 2 percent on Thursday (May 15) despite reporting a 25.4 percent year-on-year (YoY) jump in net profit at Rs 1,368 crore for the fourth quarter that ended March 31, 2025. In the corresponding quarter of the previous fiscal, LIC Housing Finance posted a net profit of Rs 1,090.8 crore.

Read more: JSW Infrastructure promoter entity launches Rs 1,200 crore block deal 

"Immediate support is placed at 24,850–24,700, while resistance is seen at 25,100 and 25,235. A decisive breakout above the 25,235 level could drive the index higher toward the 25,500–25,743 zone. Traders are advised to adopt a "buy on dips" strategy with strict risk management and avoid taking large overnight positions due to ongoing global uncertainties," Hardik Matalia, Derivative Analyst at Choice Broking said.

The Bank Nifty surged 554 points and formed a bullish candle, signalling continued buying interest. A sustained move above the key resistance level of 55,500 could lead to further upside. Immediate support is located at 55,000 and 54,720, while resistance on the higher side is seen at 55,700 and 56,000. A decisive close above this range may trigger a rally toward the 56,500 mark, he added.

Bharat Electronics, NTPC, Eicher Motors, Eternal and Adani Enterprises were the top gainers on the Nifty. Laggards included Bharti Airtel, IndusInd Bank, SBI, HCL Tech, and Infosys.