Dalal Street Ends Week Lower: Sensex Slips 182 Points, Nifty Below 24,800 Amid GDP Jitters & Global Cues

Indian equity markets concluded the trading week on a weaker note, with benchmark indices snapping their previous session’s gains to close lower on Friday, May 30, 2025, as investors adopted a cautious stance ahead of the release of key macroeconomic data and tracked unsupportive global cues.

Market Performance Overview

The 30-share BSE Sensex commenced the day on a softer note and traded within a range for most of the session. It finally settled at 81,451.01, marking a decline of 182.01 points or 0.22%. During the day, the index touched an intraday high of 81,698.21 and a low of 81,286.45.

Similarly, the broader NSE Nifty 50 index fell by 82.90 points or 0.33% to close at 24,750.70. The Nifty saw an intraday high of 24,863.95 and a low of 24,717.40.

The market breadth was negative, indicating broader selling pressure. On the NSE, out of 2,955 stocks traded, 1,581 shares declined, 1,299 advanced, and 75 remained unchanged. The overall market capitalisation of NSE-listed companies stood at $5.17 trillion.

Sectoral Deep Dive

Sectoral performance was mixed, with significant pressure seen in rate-sensitive and globally-linked sectors. The Nifty IT and Nifty Metal indices were among the top laggards, each declining by over 1%. The Nifty Auto index also shed nearly 1%.

In contrast, the Nifty PSU Bank index emerged as a notable outperformer, rallying by a significant 2.88%, led by gains in stocks like Bank of Maharashtra and UCO Bank. Select financial services stocks also saw some buying interest.

Among the Nifty 50 constituents, top gainers included Eternal Healthcare (closing up around 4.58% to ₹238.75), State Bank of India (SBI) (up 1.89% to ₹812.40), HDFC Bank (up 0.81% to ₹1,944.60), Larsen & Toubro (L&T), and Dr Reddy’s Laboratories.

On the losing side, Bajaj Auto was the top Nifty decliner, falling around 3.10%. Other major laggards included Hindalco Industries, Shriram Finance, HCL Technologies (down approximately 1.7% to 2%), and Tech Mahindra (also down around 1.7% to 2%). From the Sensex pack, Infosys, Asian Paints, and NTPC also contributed to the decline.

Key Catalysts for the Day’s Movement

Several factors contributed to the market’s cautious behaviour and subsequent decline:

1. Anticipation of GDP Data: Investors remained on edge ahead of the release of India’s Gross Domestic Product (GDP) figures for the fourth quarter (January-March 2025) and the full fiscal year 2024-25, which were due post-market hours. This data is a crucial indicator of the economy’s health and future growth trajectory.
2. Weak Global Cues: Asian markets predominantly traded in negative territory. South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng all ended lower. This weakness was partly attributed to renewed concerns over US tariff policies and their potential impact on global trade.
3. Profit Booking: The market had seen some gains in the preceding sessions, and Friday’s move could be partly attributed to profit booking by investors at higher levels.
4. Corporate Earnings Season Winding Down: Investors were also digesting the last batch of corporate earnings for the March 2025 quarter, looking for cues on future performance.
5. Institutional Activity: On the previous trading day (Thursday, May 29), Foreign Institutional Investors (FIIs) were net buyers of Indian equities to the tune of ₹884.03 crore. Domestic Institutional Investors (DIIs) also showed strong buying interest, purchasing equities worth ₹4,286.50 crore, according to exchange data. This underlying institutional support likely prevented a steeper fall.

Expert Commentary

Market analysts pointed to a confluence of these factors. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, commented, “Markets languished in negative territory to end lower amid weak Asian cues as investors cut their position in IT, metal, oil & gas and auto shares.”

V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted the broader market dynamics: “Stable institutional flows- both FII and DII - are keeping the market steady even in the absence of positive triggers. The ongoing consolidation phase is likely to continue in the near-term.” He also highlighted a disconnect, stating, “Investors should understand two distinct big trends that will weigh on markets: One, India’s macros are strong and improving. Two, this positive trend in macros is not getting reflected in corporate earnings. This is the fundamental reason for the range bound movement of the market.”

Interestingly, despite the day’s dip, cash market turnover on the Indian bourses (NSE and BSE combined) surged to an eight-month high in May 2025. The average daily trading volume (ADTV) in the cash segment rose by 11% month-on-month to ₹1.19 trillion. Experts attributed this to a rise in underlying stock values and improved investor sentiment over the month. In contrast, F&O ADTV (notional turnover) saw a 5% decline in May to ₹348.2 trillion.

What to Watch Next

Looking ahead, the market will first react to the Q4FY25 and full-year FY25 GDP numbers on Monday. These figures will be critical in shaping near-term sentiment.

Other key factors to monitor include:

• Global Market Trends: Developments in US markets, particularly inflation data and Federal Reserve commentary, will continue to influence global risk appetite.
• Crude Oil Prices: Fluctuations in Brent crude will be watched, especially for their impact on inflation and the import bill.
• Monsoon Progress: The advancement and distribution of the monsoon will be crucial for the rural economy and agricultural output.
• FII/DII Flows: Continued institutional participation will be key for market stability.
• Technical Levels: For the Nifty 50, the immediate support levels are likely around 24,500, while resistance might be faced near the 25,000 mark. A decisive break on either side could dictate the next directional move.

Retail investors are advised to remain cautious, focus on fundamentally strong companies, and consider a staggered investment approach given the current market volatility and the impending macroeconomic data points.

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This article is for informational purposes only and does not constitute financial advice. Always do your own research before investing.