Market Wrap, May 13: Indices take a pause after stellar rally; NIFTY50 closes below 24,600 level, SENSEX sheds 1,281 points; broader market outshines

A day after witnessing a sharp rally, the Indian equity benchmark indices on Tuesday, May 13, declined over 1.3% each amid profit booking following a surge in crude oil prices.

The broader market, however, outperformed the main indices and ended with gains at the end of the session.

Meanwhile, the ongoing geopolitical uncertainties between India and Pakistan also kept market investors worried.

Globally, the United States and China said in a joint statement that the US will cut tariffs on Chinese goods to 30% from as high as 145%. China, meanwhile, said its tariffs on US goods will fall to 10% from 125%.

Analysts believe this could impact India, as China is a major competitor for the country.

During the day, the pharma and PSU bank stocks rallied the most. On the other hand, FMCG and auto sectors were the biggest losers.

On Monday, according to exchange data, the foreign institutional investors (FIIs) bought equities worth ₹1,246.48 crore on a net basis.

On the global front, except for Hong Kong’s Hang Seng index, all Asian shares ended with modest gains on Tuesday as the initial euphoria over the 90-day truce in the trade war between the United States and China faded.

Hang Seng slipped 1.91% to settle at 23,108.27 levels, while the Shanghai Composite Index edged 0.17% higher to end at the 3,374.87 mark.

Tokyo's Nikkei 225 surged 1.41% to close at the 38,183.26 level, while South Korea’s Kospi ended with marginal gains of 0.04% at the 2,608.42 level.

The US markets rallied the most in three years on Monday after the US-China trade deal. Experts believe it also reduced the probability of recession to some extent.

The Dow Jones Industrial Average rose 1,160.72 points, or 2.81%, to 42,410.10 for its highest close since March 26. The S&P 500 jumped 184.28 points, or 3.26%, to finish at 5,844.19, its highest close since March 3, while the Nasdaq Composite gained 779.43 points, or 4.35%, to 18,708.34 for its highest finish since February 28.

As many as 2,959 stocks traded on the NSE on Tuesday. Out of this, 1,948 advanced, and only 937 declined, while 74 scrips remained unchanged.

This, however, indicates that the market breadth favoured positives.

A total of 43 stocks hit their 52-week highs, while 10 stocks touched their one-year lows. Besides, 199 stocks hit their upper circuit limits, and 31 touched their lower circuit bands on Tuesday.

NSE-listed firms' market capitalisation stood at ₹428.90 lakh crore at the end of the session.

The volatility index India VIX declined 1.04% to end at 18.20 levels.

Infosys was the top losing stock, falling 3.63% on the 50-share index. Eternal (-3.34%), Power Grid (-3.19%), HCL Technologies (-3.02%) and Tata Consultancy Services (-2.83%) were the other top losers.

On the other side, Bharat Electronics (4.06%), Jio Financial Services (1.83%), Hero MotoCorp (1.77%), Dr Reddy’s (1.04%) and Sun Pharma (0.95%) were the most gaining stocks on NIFTY50.

The broader market ended with gains despite the main indices’ crash on Tuesday. The NIFTY Midcap 100 index gained 0.19% to close at 55,520.70 levels, while the NIFTY Smallcap 100 index settled at 16,903.40 levels, rising 0.81%.

Nifty IT (-2.42%), Nifty FMCG (-1.34%), Nifty Auto (-1%), Nifty Private Bank (-0.99%) and Nifty Metal (-0.89%) were the biggest losers among sectors.

Nifty Media (1.66%), Nifty PSU Bank (1.56%) and Nifty Pharma (1.22%) were among the gainers.