Sensex up 180 pts, Nifty above 24,650 as IT, metal stocks rally; banks drag, India VIX eases 5%

Tata Steel, Shriram Finance, Hindalco, Bharat Electronics, and Eternal were the major gainers on the Nifty.

Benchmark indices Nifty and Sensex ended with solid gains on May 14, powered by a sharp rebound in IT and metal stocks that lifted market sentiment. However, profit-taking in banking and FMCG names tempered the rally. Adding to the positive mood, April CPI inflation cooled to a 14-month low of 3.16 percent, offering room for potential rate cuts ahead. Meanwhile, India VIX dropped over 5 percent to dip below 18, reflecting easing market jitters.

At close, the Sensex was up 182.34 points or 0.22 percent at 81,330.56, and the Nifty was up 88.55 points or 0.36 percent at 24,666.90. About 2749 shares advanced, 1085 shares declined, and 134 shares unchanged.

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Experts say that global markets remain volatile, swinging in response to shifting policy developments. The uncertainty triggered by Trump’s reciprocal tariff strategy has now eased following a deal between the US and China. With that chapter closed, the weakening trend of the dollar also seems to have reversed. The US 10-year bond yield has surged to 4.47 percent, which could affect foreign institutional investor (FII) inflows into India, one of the key factors supporting Indian equities. Additionally, as US-China ties improve, there’s a possibility that foreign capital may once again shift towards more attractively priced Chinese stocks.

Rising selling pressure from foreign investors in both cash and derivatives markets could act as a cap on any significant upside from current levels, Devarsh Vakil, Head of Prime Research at HDFC Securities, said.

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Sectoral indices closed mostly in the green on May 14, with realty, metal, and smallcap stocks leading the charge. Nifty Realty rose 1.7 percent, followed by Nifty Metal, which gained 2.46 percent, and Nifty Smallcap 100, up 1.44 percent. Other notable gainers included Nifty Energy (1.42 percent), Nifty IT (1.34 percent), Nifty Media (1.27 percent), and Nifty Oil & Gas (1.22 percent). On the downside, banking stocks underperformed, with Nifty Bank falling 0.25 percent and Nifty Private Bank down 0.19 percent. Nifty FMCG and Nifty Consumer Durables saw marginal gains of 0.03 percent and 0.09 percent, respectively. Meanwhile, market volatility eased, with India VIX slipping 5.38 percent to 17.22.

The broader market outpaced the frontline indices as the Nifty Smallcap 100 (1.1 percent), while the Nifty Midcap 100 gained 1.44 percent trend is likely to persist as the earnings season, largely in line with expectations, draws to a close.

India's largest EV player, Tata Motors, slid 1 percent after reporting a 51 percent fall in net profit for the quarter ended March 2025. Jefferies has given an 'underperform' rating on Tata Motors, setting a target price of Rs 630 per share. The firm highlighted that Tata Motors' fourth-quarter EBITDA declined by 2 percent, mainly due to lower margins at JLR. It expects a challenging year ahead for JLR, citing pressure from US tariffs, increasing competition in China, and rising customer acquisition costs.

Read more: Small, midcap indices outperform benchmarks to extend gains for a third session: These are the top gainers

Defence stocks extended gains on May 14, led by very strong momentum in shipbuilders, with Cochin Shipyard, GRSE and Mazagon Dock rising as much as 17 percent to take the Nifty India Defence higher by more than four percent. Axis Securities, in its latest note, said the surge in defence shares was fuelled by expectations of increased orders.

Tata Steel shares were up 4 percent s investors digested brokerage reactions following the firm's quarterly earnings show for the January-March period. Tata Steel reported a 117 percent jump in its consolidated profit at Rs 1,200.88 crore in the quarter ending March 31, 2025, compared to Rs 554.56 crore in the same period of the previous financial year, as the company reported declines in its input costs, especially for coking coal, as well as improved sale volumes. The profit stood at Rs 295.49 crore in the third quarter of FY25.

The dip in the market extended further than expected on Tuesday, but found support near the 24,590–24,550 zone—the recent breakout region—which helped contain deeper losses. While the decline suggests underlying weakness, it remains in line with broader volatility trends. A rebound is likely in early trade, though any upside may be short-lived if the index fails to clear the 24,660–24,726 zone. A failure to sustain above this level could trigger another drop towards the 24,509–24,424 range, Anand James of Geojit Investments Limited said.

Tata Steel, Shriram Finance, Hindalco, Bharat Electronics, and Eternal were the major gainers on the Nifty. Laggards included Asian Paints, Cipla, NTPC, Kotak Mahindra Bank, and Tata Motors.