Stock market today: Sensex today tumbles 270 points, Nifty slips below 25K in range-bound trade; IT stocks bleed

Stock market today: Indian stock market extended its range-bound movement to the second straight session on Monday, May 19, ending with a modest decline, as domestic technology stocks once again bore the brunt of selling pressure. Both benchmark indices consolidated in a tight range after touching a 7-month high on May 15.

While the headline indices lacked clear direction, broader markets continued to attract investor interest. The Nifty 50 ended with a cut of 74 points, or 0.30%, to settle below the 25,000 mark at 25,945, while the Sensex fell by 271 points, or 0.33%, to close the session at 82,059.

The Nifty Midcap 100 and Nifty Smallcap 100 indices, however, outperformed the benchmarks, with the former ending with a gain of 0.08%, while the latter surged by 0.51%, reflecting a continued risk-on sentiment among investors.

After maintaining a steady upward trend last week, defence stocks witnessed some level of profit booking, with names like Paras Defence, Mazagon Dock Shipbuilders, Data Patterns (India), and HAL ending the session with cuts of up to 5.1%.

Meanwhile, textile stocks attracted a good amount of buying interest in an otherwise subdued market, following India’s imposed restrictions on Bangladeshi exports of ready-made garments and several other consumer goods through land ports. The move is aimed at ensuring fairness and equality in bilateral trade.

Sectoral Performance: IT bleeds, realty stocks gain

Domestic technology stocks once again witnessed heavy selling pressure from Dalal Street investors amid growth concerns in their top revenue region—the US—after global rating agency Moody’s downgraded the US government’s credit rating to Aa1 from Aaa, citing rising debt and interest costs. 

The Nifty IT index ended the session with a decline of 1.37%, settling at 37,450. IT companies, which derive a substantial portion of their revenue from the US, had jumped 5.8% last week, marking the IT index's second-biggest weekly gain in 2025.

The rating action also pushed US Treasury yields higher, potentially making equities in emerging markets such as India less attractive to foreign investors. Bond yields were further boosted after US President Donald Trump’s sweeping tax-cut bill was approved by a key congressional committee.

Further, US consumer sentiment weakened, according to a survey released by the University of Michigan on Friday. The index of consumer sentiment dropped to 50.8, down from 52.2 in April, marking the second-lowest reading on record, behind June 2022, which further dented investor sentiment towards tech stocks. 

Other sectoral losers included Nifty Media, Nifty Oil & Gas, and Nifty FMCG, all of which ended with cuts of up to 0.60%.

On the winning side, realty stocks emerged as the top sectoral performers, extending their winning streak to the fourth consecutive trading session, with Nifty Realty ending the session up 2.26% at the 932 level on expectations that the Indian economy could recover in the current fiscal year, potentially boosting urban consumer demand.

Meanwhile, Nifty PSU Bank, Nifty Pharma, Nifty Auto, and Nifty Metal all ended with gains ranging between 0.10% and 1.47%.

Markets to remain in consolidation phase?

Rupak De, Senior Technical Analyst at LKP Securities, said, "Indian stocks witnessed a volatile session, with the Nifty and Bank Nifty decoupling from each other. The Nifty slipped lower as IT and Oil & Gas stocks came under profit-taking pressure".

"Technically, the index appears to be in a consolidation phase, which may continue for the next few days. On Monday, the Nifty closed below the 25,000 mark after two days of holding above it. The index may remain under pressure unless it reclaims the 25,000 level. On the downside, the Nifty could drift toward the 24,800–24,750 zone. A deeper correction may be likely if it breaks below 24,750. Conversely, a move above 25,000 could trigger a rally toward the 25,250–25,350 range," he further stated.

Meanwhile, Ajit Mishra – SVP, Research, Religare Broking, said this intermediate pause in the index, without any significant damage to the overall structure, is a healthy sign. “During such phases, traders should adopt a stock-specific approach. Among the key sectors, banking now merits more attention following its recent consolidation phase, as it could lead the next leg of the rally and help the Nifty move towards the 25,200 mark and beyond,” said Mishra.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.