Sensex Falls 180 Points, Nifty 50 Slips Below 24,800 in Range-Bound Trade; Metal Stocks Bleed

Mumbai, May 31, 2025 — The Indian equity markets concluded the final trading session of the month on a cautious note as benchmark indices witnessed a range-bound session and closed in the red. The BSE Sensex declined by 180.46 points to end at 82,354.67, while the NSE Nifty 50 slipped below the psychological 24,800 mark, settling at 24,785.20, down by 62.10 points.

A day marked by tight movement saw selling pressure emerge in the latter half, with metal stocks particularly bearing the brunt of investor exit. Broader market sentiments remained mixed, mirroring the indecisive global landscape and macroeconomic headwinds.

Market Snapshot

• BSE Sensex: 82,354.67 (−180.46 points / −0.22%)

• NSE Nifty 50: 24,785.20 (−62.10 points / −0.25%)

• Nifty Bank: 54,118.40 (−0.31%)

• India VIX: 11.82 (+2.3%)

Key Drivers Behind Today's Market Movement

1. Global Market Uncertainty

Global cues played a dampening role in Friday’s trade as investors remained cautious ahead of key inflation prints in the U.S. and Europe. Asian markets traded mixed, with the Hang Seng and Nikkei under pressure, while European markets opened slightly positive but lacked momentum.

2. Profit Booking After Recent Rally

With indices recently hitting record highs earlier this week, today’s move was largely seen as a healthy consolidation. Market participants opted to book profits, particularly in overbought sectors like metals, realty, and energy, while staying on the sidelines ahead of the U.S. PCE inflation data.

3. Slump in Metal Stocks

The steepest decline was observed in the metal pack, as concerns over weak global demand, declining Chinese manufacturing data, and falling base metal prices weighed on sectoral sentiment.

4. Rupee Weakness and FII Outflows

The Indian rupee closed at ₹83.19 per dollar, slightly weaker, adding to the caution among foreign investors. According to provisional data, Foreign Institutional Investors (FIIs) were net sellers to the tune of ₹1,130 crore, while Domestic Institutional Investors (DIIs) remained net buyers with ₹890 crore worth of purchases.

Sectoral Performance: Metal Stocks Take the Biggest Hit

Top Sectoral Losers:

Metal stocks saw aggressive selling led by JSW Steel (−3.6%), Tata Steel (−3.2%), Hindalco (−2.8%), and NMDC (−2.4%). Global base metal prices slid further amid weak Chinese industrial activity and waning demand forecasts.

Outperformers:

Despite the broader weakness, sectors such as FMCG, IT, and Pharma showed resilience, supported by defensive positioning. Infosys, HUL, and Sun Pharma ended in the green.

Stock-Specific Action

Top Gainers on Nifty 50:

Top Losers on Nifty 50:

Broader Market Performance

The broader indices reflected a similar cautious sentiment.

• Nifty Midcap 100: +0.14%

• Nifty Smallcap 100: −0.08%

Among broader markets, Titagarh Rail Systems, Mazagon Dock, and KPI Green Energy continued to draw investor interest, while microcaps in IT services and infra struggled to find traction.

Technical View: Nifty 50 in Consolidation Zone

Technical analysts noted that the Nifty 50 has entered a phase of short-term consolidation, facing resistance near the 24,850–24,900 range and support near 24,700. A decisive breakout or breakdown from this zone could determine near-term directional bias.

“With momentum oscillators cooling off, a corrective phase may continue unless we see a strong move above 24,900. Traders should keep a strict stop-loss while deploying fresh intraday longs,” said Ravi Singh, Technical Head at ShareIndia.

Market Breadth & Volatility

• Advance-Decline Ratio (NSE): 962 / 1,199

• India VIX (Volatility Index): Rose 2.3% to 11.82

The rise in India VIX suggests increased nervousness among participants heading into the weekend.

IPO Market Buzz

Two SME IPOs—Maitreya Medicare and Systango Technologies—closed today with oversubscriptions, reflecting ongoing interest in primary markets despite secondary market volatility. Meanwhile, Go Digit's listing this week was tepid, opening at a 5% premium but ending flat by market close.

FII/DII Activity

This persistent FII selling is increasingly being offset by strong domestic flows via mutual funds and SIPs, which continue to show monthly net inflows exceeding ₹16,000 crore.

Global Market Check

Investors worldwide remain cautious amid U.S. inflation data due tonight and concerns over Fed's future interest rate trajectory.

Expert Views

Sujata Rao, Fund Manager, Kotak AMC:

"The market is undergoing a healthy breather after a stellar run. While largecaps are pausing, we expect midcaps to offer selective alpha going forward. Keep an eye on June macro triggers and monsoon progress."

Rahul Mishra, Equity Strategist, Angel One:

“Metals are under cyclical pressure and may remain weak in the near term. However, longer-term fundamentals for industrial growth remain intact. This is more of a sectoral rotation than panic selling.”

What to Watch Next Week

As we step into June, several triggers are lined up:

• US PCE Inflation Data (Tonight)

• India’s GDP Numbers for Q4FY25 (Early Next Week)

• RBI Monetary Policy Meeting (June 6)

• Monsoon Onset Forecast by IMD

• Auto Monthly Sales Numbers

Market participants are advised to maintain a balanced portfolio with focus on defensives, high earnings visibility, and monsoon-sensitive stocks like FMCG, agrochemicals, and rural consumption plays.

The Indian stock markets closed on a subdued note today with the Sensex falling by 180 points and the Nifty 50 dipping below 24,800. Metal stocks were the biggest losers, while defensives like IT and FMCG managed to hold the fort. With a range-bound setup and key global and domestic data due next week, traders and investors are expected to remain cautious and stock-specific in their strategies.

Key Takeaway: Volatility is likely to persist in the coming sessions. While profit booking has set in, strong domestic liquidity continues to cushion major corrections. Smart money is gradually rotating between sectors, indicating an evolving market phase rather than a sharp reversal.