Sensex-Tanks-Over-900-Points-Nifty-50-Below-24800Profit Booking, Global Cues Drag Sensex, Nifty 50 Deep Into Red

 

As of mid-morning on Tuesday, May 27, 2025, the Indian stock market is witnessing a steep fall. Both major benchmark indices, BSE Sensex and NSE Nifty 50, are trading sharply lower as investors react to weak signals from global markets and start booking profits after a recent rally. 

This decline comes after two sessions of steady gains, suggesting that investors may be turning cautious due to high valuations, global economic pressures, and sector-specific weaknesses. 

 

Current Market Situation 

 

At around 11:38 AM (IST), the Sensex is down by over 900 points, trading near 81,261, and the Nifty 50 has dropped around 1%, slipping below the 24,800 mark to hover near 24,737. This downward trend is impacting nearly all sectors, and volatility is also rising. 

The India VIX, which measures market volatility and investor fear, has climbed about 4%, signaling nervousness among traders and institutional investors. 

 

Sector-wise Performance 

 

All the major sectors are in the red today, with heavy selling visible across most of them: 

Information Technology (IT) stocks are among the biggest losers. This is due to global recession concerns and slowing demand from international clients. The Nifty IT index is down by nearly 1%. 

Banking and Financial Services are also under pressure. The Nifty Bank index is down by 0.66%, and Private Banks are seeing selling activity with the index lower by 0.7%. 

Auto Sector stocks are declining too. The Nifty Auto index has fallen by 0.57%. Experts believe this is due to rising raw material costs and concerns about high fuel prices. 

Midcap and Smallcap stocks are showing mixed trends. While the Nifty SmallCap index is slightly positive, the Nifty MidCap index is trading slightly in the red. 

 

Why the Market Is Falling Today 

 

Global Market Weakness 

 

Asian markets are down today, including Japan’s Nikkei and South Korea’s Kospi. These weak trends from global markets often affect investor confidence in India as well. Concerns about global interest rates, China’s economic slowdown, and geopolitical tensions are playing a role in dragging markets down. 

 

Profit Booking 

 

The Indian market has been hitting record highs in recent weeks. Investors are now choosing to sell and book profits, especially in large-cap stocks. This profit-taking is causing sudden drops in the indices. 

 

Valuation Concerns 

 

The Nifty 50 is trading at a price-to-earnings (PE) ratio of 22.6, which is higher than its 1-year average. This means that many stocks are looking expensive, and investors are worried that future earnings might not be strong enough to support such high valuations. 

 

Foreign Investor Caution 

 

Foreign investors are becoming more cautious. On May 26, they bought Indian stocks worth around ₹135 crore, which is lower compared to recent sessions. These investors play a big role in driving market trends, and lower participation from them can lead to weakness. 

 

Major Stock Highlights 

 

InterGlobe Aviation (IndiGo) 

 

The stock is down by nearly 3% after its co-founder, Rakesh Gangwal, sold shares worth $1.36 billion. This kind of large selling from a promoter usually signals concern to the market and can pull the stock down. 

 

FirstCry Parent (Brainbees Solutions) 

 

This stock has fallen more than 4% today. The company reported higher quarterly losses, which have disappointed investors. 

 

Borana Weaves 

 

Despite the negative market trend, Borana Weaves has made a strong debut. The company listed its shares at ₹243, which is about 12.5% higher than its IPO price. This shows that there is still investor interest in select IPOs. 

 

Container Corporation of India 

 

The company has announced a bonus issue, where investors will get 1 free share for every 4 shares they hold. Along with this, the company has also declared a final dividend of ₹2 per share. This news has helped the stock trade with more stability compared to others. 

 

Expert Stock Recommendations 

 

Market experts suggest that despite today’s fall, investors can still look at strong-performing stocks for long-term gains. 

Computer Age Management Services (CAMS) is being recommended for buying as it has shown good financial performance and strong future potential. 

Inox Wind is another stock that experts are bullish on due to growth in renewable energy and government support for clean power projects. 

However, analysts also advise investors to be careful, focus on strong fundamentals, and avoid jumping into trades based on short-term trends. 

 

What to Expect Going Forward 

 

Many market participants believe that today’s fall could be a short-term correction. The overall long-term trend remains positive due to: 

Strong domestic economy 

Good earnings performance by many companies 

Increased participation from retail investors 

But, short-term movements will depend heavily on global events, crude oil prices, inflation data, and central bank policies (especially the US Federal Reserve and the Reserve Bank of India). 

 

Outlook 

 

If global markets recover or show stability, Indian markets may bounce back soon. On the other hand, if global cues worsen, further pressure could be seen in the coming days. 

Today’s market activity reflects a cautious and nervous mood among investors. Despite strong fundamentals in many companies, external factors like global market weakness and profit booking are driving the fall. This reminds investors of the need to stay informed, look at long-term trends, and avoid panic during market corrections. 

Long-term investors with a clear strategy and strong stock selection should use these corrections as buying opportunities, while short-term traders should remain cautious until more stability returns.