Stock Market Today: Why Is Nifty 50 Below 24,600 And BSE Sensex Down 700 Points?

Dalal Street opened on a weak note on Thursday, May 22, as a sharp surge in global bond yields triggered a broad-based sell-off across equity markets. On the weekly expiry session, the Nifty 50 slipped below the 24,600 mark, while the Sensex plunged over 700 points in early trade.

As of 10:24 am, the Sensex was down 663.89 points, or 0.81%, at 80,932.74, and the Nifty was lower by 200.65 points, or 0.81%, at 24,612.80.

Top Drags and Sectoral Pressure
Heavyweights like PowerGrid, ITC, M&M, HUL, Reliance, HCL Tech, Maruti, Tech Mahindra, Tata Motors, and Axis Bank led the decline. On the flip side, IndusInd Bank, Tata Steel, Bharti Airtel, and Eternal showed resilience.

In sectoral indices, Nifty Auto fell the most, down 1.43%, followed by FMCG, Pharma, PSU Banks, Metal, IT, and Oil & Gas. Media and Realty sectors bucked the trend, trading in the green.

Why is the stock market down today?
Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, noted: “Nifty has been consolidating in the broad range 24,500 – 25,100 for the last couple of weeks. Yesterday there was an attempt to breach above 25,000, but it was unsuccessful. The crucial support zone is placed at 24,500 – 24,450, which coincides with the 20-day moving average and Fibonacci support.”

Read More – IndusInd Bank Share Price Jumps Over 3% Despite Q4 Loss

He added that a breakdown below the 20-DMA could lead to a further slide towards 24,000 – 23,900. “The overall structure is still positive, and dips towards the support zone should be considered as a buying opportunity with a stop loss at 24,400,” Gedia advised.

Wall Street Sinks on Fiscal Worries
Overnight, U.S. markets ended sharply lower amid concerns that a new budget bill could worsen the country’s deficit.
Dow Jones fell 816.80 points (1.91%) to 41,860.44
S&P 500 dropped 1.61% to 5,844.61
Nasdaq Composite lost 1.41% to 18,872.64

The 30-year U.S. Treasury yield spiked to 5.09%, its highest since October 2023, while the 10-year yield rose to 4.59%.
 

“Bond markets from the US to Japan to Europe are throwing a tantrum as a warning. US markets had a 1% plus fall on the back of worries on the debt and deficit impact of the Trump tax cuts and spending plan… Markets are edgy without giving time for developments to play out.”

Bagga remains cautiously optimistic: “Trump has shown his sensitivity to market feedback and we expect better outcomes than what are being priced in by global markets at present.”

Asian Markets Follow Suit
Asian stocks mirrored the US sell-off. Japan’s Nikkei 225 fell 1.06%, while Topix declined 0.85%. South Korea’s Kospi dropped 0.59% and Kosdaq 0.69%. Australia’s ASX 200 dipped 0.36%, and Hong Kong’s Hang Seng edged down 0.24%. China’s CSI 300 was also marginally lower.

Investors are awaiting New Zealand’s 2025 budget release for further regional cues.

Soaring global bond yields, US fiscal concerns, technical resistance in Indian indices, and a lackluster US Treasury auction have all contributed to today’s sharp sell-off in the stock market. While technical analysts still hold a cautiously optimistic view, broader global cues continue to pressure equities across the board.