Key Points
- Sensex plunged 872 points (1.06%) to 81,186.44; Nifty50 dropped 261.55 points (1.05%) to 24,683.90.
- Over ₹3.44 lakh crore in investor wealth erased as BSE market cap fell to ₹440.23 lakh crore.
- Widespread sell-off: 26 of 30 Sensex stocks declined; 2,522 of 4,104 BSE stocks closed lower.
- Auto sector led the fall, with Nifty Auto index down 2.17% after recent rally.
- Major losers: Eternal (-4.24%), Maruti Suzuki (-2.7%), UltraTech Cement, Power Grid, Nestlé India.
- Only Tata Steel, Infosys, and TCS ended in the green among Sensex constituents.
- Volatility index (India VIX) rose to 17.39, signaling heightened market nervousness.
New Delhi: Tuesday, May 20, proved to be a punishing day for Indian equity markets as a wave of selling swept across sectors, erasing over ₹3.44 lakh crore in investor wealth. The BSE Sensex closed sharply lower by 872 points (1.06%) at 81,186.44, while the Nifty50 slipped 261.55 points (1.05%) to end at 24,683.90.
Broad-Based Sell-Off Hits All Sectors
The rout was widespread: 26 out of 30 Sensex stocks finished in the red, and 2,522 of 4,104 traded stocks on the BSE closed lower, reflecting negative market breadth. The Nifty Midcap100 and Smallcap100 indices also ended down by 1.62% and 0.94%, respectively, showing that the sell-off extended beyond blue-chips into mid- and small-cap segments.
Auto Sector Bears the Brunt
The auto sector was the hardest hit, with the Nifty Auto index plunging 2.17%—the steepest sectoral fall of the day. This sharp reversal came after a four-day rally fueled by optimism over a potential US-India trade deal. Key losers included:
- Eternal (formerly Zomato): Down 4.24%, leading the day’s losers.
- Maruti Suzuki: Fell 2.7% as profit booking set in after recent gains.
- Hero MotoCorp, Eicher Motors, Mahindra & Mahindra, Bajaj Finance, Bajaj Finserv, Hindustan Unilever, and Nestlé India also posted significant losses.
Tube Investments of India dropped over 3% after a strong monthly run-up, while other auto majors like Tata Motors and Bajaj Auto also traded lower.
Few Stocks Buck the Trend
Amid the carnage, only a handful of stocks managed to post gains. Tata Steel rose 1.27%, Infosys edged up 0.23%, and TCS closed marginally higher by 0.07%. ONGC and Hindalco also saw modest advances in the broader market.
Market Volatility on the Rise
The India VIX, a key measure of market volatility, inched up by 0.12% to 17.39, reflecting increased nervousness among investors. Analysts attributed the sharp decline to profit booking, global uncertainty, and caution ahead of key domestic and international events.
With all sectoral indices ending in the red and the broader market under pressure, investors are expected to remain cautious in the coming sessions. Market participants will closely watch global cues, macroeconomic data, and any updates on trade negotiations for signs of stability or further volatility.
A broad-based sell-off on May 20 saw Sensex and Nifty tumble over 1%, led by steep declines in auto and FMCG stocks. Market volatility spiked, and only a few stocks managed to resist the downtrend, leaving investors wary about the near-term outlook.
