Markets Cool After Monday’s Euphoria
After a historic rally on May 12, Indian equity markets witnessed a broad-based correction on Tuesday, May 13, 2025. The sharp pullback was attributed to profit booking, weak global cues, and cautious sentiment ahead of inflation data from India and the U.S.
Market Snapshot
- Sensex: Down 1,281.68 points (-1.55%) to close at 81,148.22
- Nifty 50: Down 346.35 points (-1.39%) to settle at 24,578.35
The drop came after Monday’s euphoric rally that added over ₹16 lakh crore in investor wealth.
Source: Moneycontrol
Key Factors Driving the Decline
- Profit Booking: After Monday’s historic gains, investors locked in profits across large-cap and mid-cap names.
- Weak Global Cues: Rising U.S. Treasury yields and crude oil prices dented risk sentiment globally.
- Foreign Flows Caution: Nomura’s increased China allocation created concerns about FII rebalancing away from Indian equities.
- Awaited Inflation Data: Market participants await India and U.S. CPI data due later this week, prompting cautious positioning.
Source: Economic Times
Top Nifty 50 Gainers
| Company | Price (₹) | % Change | Reason |
|---|---|---|---|
| Bharat Electronics Ltd. | 335.75 | +4.01% | Order inflows and defence sector optimism |
| Hero MotoCorp | 4,063.60 | +1.97% | Recovery in rural demand and EV expectations |
| Jio Financial Services | 267.40 | +1.71% | Positive institutional coverage |
| Dr. Reddy’s Laboratories | 1,207.10 | +0.96% | U.S. FDA-related developments |
| Sun Pharma | 1,700.00 | +0.82% | Pharma buying amid global healthcare sentiment |
Top Nifty 50 Losers
| Company | Price (₹) | % Change | Reason |
|---|---|---|---|
| Infosys | 1,568.60 | -3.58% | Weak global tech cues and profit booking |
| Power Grid Corporation | 298.45 | -3.43% | Broader utilities sector pressure |
| Eternal | 231.65 | -3.28% | Valuation correction post rally |
| HCL Technologies | 1,619.60 | -3.04% | IT sector sell-off |
| Tata Consultancy Services | 3,515.00 | -2.91% | Lower guidance commentary impact |
Top Nifty 500 Gainers (May 13, 2025)
| Company | Price (₹) | % Change | Reason |
|---|---|---|---|
| Tanla Platforms | 557.35 | +12.72% | Strong Q4 earnings and positive outlook in CPaaS space |
| Bharat Dynamics | 1,746.70 | +11.26% | Increased defence orders and export visibility |
| Vishal Mega Mart | 129.71 | +6.56% | Retail expansion and strong footfall growth |
| Inventurus Knowledge Solutions | 1,659.10 | +6.24% | Strategic partnerships and robust quarterly performance |
| Afcons Infrastructure | 457.30 | +6.18% | New project wins and infrastructure momentum |
Top Nifty 500 Losers (May 13, 2025)
| Company | Price (₹) | % Change | Reason |
|---|---|---|---|
| KFin Technologies | 1,047.80 | -6.27% | Heavy profit booking post sharp uptrend |
| UPL | 642.85 | -5.02% | Global agro-chemical price pressure |
| Chambal Fertilisers & Chemicals | 657.55 | -4.61% | Weak quarterly numbers and margin compression |
| Welspun Living | 144.31 | -4.19% | Demand moderation in export markets |
| Jyothy Labs | 336.20 | -4.16% | Margin concerns and muted rural recovery |
Sectoral View
- IT Stocks Plunge: Major drag on the indices with Infosys, HCL Tech, and TCS falling sharply.
- Pharma Shows Resilience: Select names like Sun Pharma and Dr. Reddy’s bucked the broader trend.
- Financials Under Pressure: Banks like Kotak Mahindra and ICICI Bank saw selling pressure.
Currency & Macro Watch
- The Indian rupee ended nearly flat at 85.33 per dollar, as early gains from the India-Pakistan ceasefire faded amid equity weakness.
- All eyes now turn to inflation data, which will set the tone for global interest rate expectations and near-term FPI flows.
Source: Reuters
What to Watch on May 14, 2025
- U.S. CPI Data: The April Consumer Price Index report will be released in the U.S. tonight. A higher-than-expected reading may impact global rate expectations and equity flows. (FXStreet)
- Indian Retail Inflation: With April inflation easing to 3.16%, investors will assess its impact on RBI’s policy stance. (Times of India)
- Earnings from Global Majors: Walmart, Cisco, and Applied Materials will release quarterly results that could impact sectoral sentiment globally. (Investopedia)
- Fed Chair Powell’s Speech: Scheduled for May 15, it will likely provide further clues on interest rate direction.
- Cryptocurrency Volatility: Bitcoin dipped below $102,400, and continued swings may influence broader risk appetite. (Economic Times)
Today’s market action was a classic case of cooling off after an exuberant rise. The correction was broad but not alarming, as profit booking post a record rally is a healthy market sign. Caution is expected to prevail until inflation data provides further direction.
Stay tuned for more updates and insights as the week unfolds.
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