Sensex Falls Over 1,200 Points, Nifty Below 24,600 | Indian Stock Market Analysis – May 13

Date: May 13, 2025 | By: TalesXP News Desk

After a sharp rally on Monday, the Indian stock market witnessed a strong pullback on Tuesday, May 13, 2025. The BSE Sensex closed 1,281.68 points down at 81,148.22 while the Nifty 50 ended the day 346.35 points lower at 24,578.35.

🔍 Key Reasons Behind Today’s Market Fall

• Profit Booking: Heavy profit booking was seen after Monday’s 4% rally, as investors cashed out gains.
• Weak Global Sentiment: Global markets traded lower amid uncertainty over U.S.–China trade deals.
• Mixed Corporate Earnings: Several companies underperformed on quarterly earnings expectations.
• High Valuations: Analysts raised red flags about stretched valuations in Nifty and Sensex.

📊 Sector Performance Snapshot

Top Losers:

• IT Sector: Infosys, Wipro, HCL Tech saw declines between 2% to 3%.
• Auto & FMCG: Titan, Maruti, Tata Motors slipped sharply.
• Financials: HDFC Bank, Axis Bank, Bajaj Finance were major drags.

Sector Gainers:

• Pharmaceuticals: Lupin gained 3.65% after a U.S. drug launch.
• Mid & Small Caps: BSE MidCap and SmallCap indices closed in green.

💥 Why Did the Market Crash?

1. Profit Booking After a Strong Rally

On Monday, Indian equities had seen a near-4% surge as tensions between India and Pakistan de-escalated. However, Tuesday brought reality checks, as traders and institutional investors engaged in profit booking—a common market behavior after sharp rallies.

2. Weak Global Sentiment

Asian and European markets traded lower following uncertainties around U.S.–China trade relations and slowdown concerns in Europe. The risk-off sentiment rippled into Indian equities as well.

3. Q4 Earnings Not Meeting Expectations

Despite optimism, several companies disappointed investors with subpar Q4 results. For instance, UPL shares dropped by over 5% despite reporting a net profit jump, raising eyebrows on its future outlook.

4. Overvalued Indices

Experts have raised caution over Nifty’s valuation levels, which have outpaced earnings growth. The market correction appears to be a valuation reset amid lackluster earnings guidance for the rest of FY25.

📌 Key Stock Movers

• Lupin: +3.65% — U.S. launch of Tolvaptan boosted buying interest.
• UPL: -5.3% — Despite profit rise, outlook spooked investors.
• ICICI Lombard: Closed above 150-DMA, showing bullish strength.

📈 Technical Levels to Watch

• Nifty Support: 24,300 – 24,450
• Nifty Resistance: 24,750 – 25,000
• Sensex Support: 80,000 – 80,500
• India VIX: Increased by 5% to 15.20, indicating market nervousness

🔮 Market Outlook

Analysts suggest staying cautious in the near term. With inflation data, global cues, and Q4 earnings ahead, the market could remain volatile. Long-term investors may use dips to accumulate quality stocks in pharma, energy, and infrastructure sectors.

“The correction was expected. Markets needed to consolidate after Monday’s big jump. We recommend selective buying,” said Rajeev Mehta, Senior Analyst at Kotak Securities.

🗓️ Events to Watch This Week

• India’s April CPI inflation data
• U.S. Fed commentary and interest rate cues
• Quarterly earnings from ONGC, Airtel, SBI Life
• Progress of 2025 monsoon season

Stay tuned to TalesXP for daily stock market coverage, earnings updates, and financial news that matters to Indian investors.

Tags: Indian share market, Sensex today, Nifty 50, Stock Market News, May 13 market report, Indian equity analysis, BSE, NSE