Markets End Lower After Volatile Trade As Nifty Manages To Keep Above 24,000 Amid Oil Boil

Mumbai, May 5:Equity benchmarks ended on a weaker note in a volatile session on Tuesday, with the Nifty managing to somehow close above the 24,000 mark despite persistent pressure from global cues and elevated crude oil prices.

The Sensex declined 251.6 points or 0.33% to 77,017.8, while the Nifty 50 fell 86 points or 0.36% to settle at 24,033. Market breadth remained slightly negative, with about 1,890 shares advancing, 2,110 declining, and 169 remaining unchanged.

Weak Start

Markets started weak, reflecting negative global cues and a surge in crude oil prices amid escalating tensions in the Middle East. Selling pressure in early trade dragged stocks lower with the Nifty even dipping below the psychologically significant 24,000 mark briefly.

The decline during the first half was led by banking and rate-sensitive stocks with rising crude raising inflationary fears and dragging on sentiment. The private banking index, in particular, showed strain throughout the day.

Mid-SessionRecovery

Afternoon saw an attempt at recovery as benchmarks came off their intraday lows with the Nifty managing to reclaim the psychologically significant 24,000 mark

But the rebound could not sustain going ahead as concerns around oil price surge and rupee weakness came rushing back to drag the stocks lower.

Sectoral Divergence

Sectoral trends were mixed. Auto, FMCG, power, pharma, and telecom indices offeredsomestrength to marketswiththeir indices edginghigher by around 0.5% each.

On the other hand, realty stocks did just the opposite, dragging the markets down by declining 1.4% and emerging as the worst stocks followed by consumer durables, down about 1%, and the private banking index, which dipped 0.5%.

The divergence in index performance signals selective buying amid broader caution.

Stock-Specific Action

Among Nifty constituents, major laggards included Jio Financial Services, ICICI Bank, Coal India, Tech Mahindra, and Eternal, which weighed on the indices.

On the flip side, gains were seen in Mahindra & Mahindra, UltraTech Cement, Nestlé India, Bajaj Finserv, and Hindalco Industries, reflecting stock-specific resilience driven by earnings and sectoral tailwinds.

Broader Resilience

Interestingly, the broader market held up relatively well. The Nifty midcap and smallcap indices ended with marginal gains, indicating continued participation beyond large caps and selective risk appetite among investors.

Macro Overhang

The overarching theme through the session remained caution driven by macro factors. Elevated crude oil prices and a weakening rupee continued to weigh on sentiment, overshadowing domestic positives.

While the Nifty’s ability to hold above 24,000 offers some technical comfort, the day’s volatile price action suggests that markets remain sensitive to global developments particularly oil and geopolitics.

For now, the undertone remains cautious, with volatility likely to persist unless external pressures begin to ease.

Source:

• Exchanges