Market Close: Sensex Ends 1,300 Points Lower As Afternoon Recovery Fades; Broad-Based Selling Hits Key Sectors

Mumbai, May 11:Indian equities ended sharply lower on Monday, though the session saw a partial recovery around 2 pm before selling pressure re-emerged in the final hour of trade. Benchmarks initially drifted lower from the open amid weak global cues and sectoral stress, briefly trimmed losses in mid-session, but eventually closed deep in the red as broad-based selling intensified.

At the close, the Sensex fell 1,312.91 points, or 1.70 percent, to 76,015.28, while the Nifty declined 360.30 points, or 1.49 percent, to 23,815.85. The afternoon bounce offered temporary relief, but it failed to sustain as investors used rebounds to pare exposure, particularly in large-cap and cyclical stocks.

Sharply Negative

Market breadth remained sharply negative, highlighting the depth of the correction. A total of 2,779 shares declined versus 1,390 advances, reflecting widespread selling across segments. Volatility also surged, with the India VIX rising over 10 percent, signalling heightened uncertainty and defensive positioning among traders.

Sector-wise, the pressure was broad and decisive. Consumer durables emerged as the worst-performing NSE sectoral index, falling 3.7 percent. The index saw heavy selling throughout the day. Realty, PSU banks and oil & gas stocks also witnessed significant declines, tracking concerns around crude oil prices, inflation risks and global risk aversion.

Titan Tumbles

Within the benchmark index, heavyweight names added to the downside. Titan Company, SBI, Bharti Airtel and Reliance Industries were among the top Nifty losers, weighing heavily due to their index influence. Titan led the losers after PM Modi’s advisory urging restraint on gold purchases for one year, particularly in the context of weddings and discretionary buying, which market participants interpreted as potentially impacting near-term demand sentiment for the sector. To be sure, the advisory hammered other jewellery stocks as well.

Financial stocks remained under pressure, while energy-linked counters tracked volatility in global crude markets.

Brief Recovery

The brief afternoon recovery around 2 pm coincided with selective buying in oversold counters, suggesting some traders attempted value-based positioning. However, the rebound lacked broad participation and gradually faded as selling resumed toward the close, keeping indices firmly below key levels.

Tata Tall

Amid the weakness, Tata Consumer Products surged over 8 percent, standing out as the top Nifty gainer. The stock jumped to its highest level in over two years after the Tetley ‌tea maker forecast double-digit revenue growth in FY27. Tata Consumer posted a broad-based performance beat, supported by robust volume growth across its India beverages and foods segments, while management indicated scope for further margin improvement, aided by softening tea prices and a more favourable product mix.

Overall, Monday’s session was marked by volatility, weak breadth and sectoral divergence. Although intraday recovery attempts emerged mid-session, they were short-lived. With volatility elevated and global cues still in focus, investors are likely to remain cautious, tracking commodity prices, currency trends and foreign flows for direction in the coming sessions.

Source:

• Exchanges