Indian benchmark indices, Sensex and Nifty, continued their downward path during the afternoon session on May 20, hampered by declines in the auto, banking, and pharma sectors. The Nifty Midcap 100 and Smallcap 100 indices also succumbed to selling pressure, bringing an end to their six-day winning streak.
By noon, the Sensex had dropped by 317.89 points, or 0.39 percent, settling at 81,741.53. The Nifty fell by 87.95 points, or 0.35 percent, to 24,857.50. At that time, there were 1,558 advancing shares, 1,798 declining shares, and 121 remaining unchanged.
In terms of sectoral performance, the Nifty Metal and IT indices managed to mitigate some of the losses in the broader market. Positive investor sentiment boosted metal stocks, following China’s announcement of an interest rate cut aimed at bolstering its economy amidst ongoing trade tensions with the United States.
The People’s Bank of China reduced its benchmark lending rates for the first time in seven months, igniting hopes for increased demand for metals, which could benefit Indian producers and exporters.
On another note, the Nifty IT index resumed its upward trajectory, though it had retreated from its intraday highs. This bounce-back came a day after concerns about a slowing U.S. economy surfaced, triggered by Moody’s downgrade of the country’s credit outlook.
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