How Did the Indian Market Perform Today?
Indian markets witnessed a sharp sell-off on Thursday, May 22, 2025, as investors responded to weak global cues and domestic sectoral drag. The Sensex fell by 644.64 points (-0.79%) to close at 80,951.99, and the Nifty 50 slipped 203.75 points (-0.82%) to end at 24,609.70. (Moneycontrol)
Interestingly, the Nifty Bank index fared relatively better, shedding just 0.24% to settle at 54,941.30. On the volatility front, India VIX eased 1.65% to 17.26, signaling limited near-term panic. (NSE India)
Which Sectors Dragged the Market?
Most sectors ended in the red, with IT and FMCG leading the correction. Here’s a snapshot:
- IT: Declined over 1%, weighed down by Tech Mahindra and Wipro, as global tech demand worries spooked investors.
- FMCG: Down 1.44% on valuation concerns; ITC and Nestle saw notable selling.
- Auto, Consumer Durables, Oil & Gas: Each lost over 1% amid broader market weakness.
- Media: Stood out as the only gainer, possibly benefiting from bargain buying or defensive rotation.
(Source: Business Standard)
Why Did These Nifty 500 Stocks Move?
Top Gainers
- TTML (+10.99%): Spiked on speculation of Tata Sons’ capital infusion to handle AGR dues. (Business Today)
- GRSE (+10.23%): Rose after winning a major ₹25,000 crore navy contract. (Value Research)
- PTCIL (+8.37%): Continued its strong momentum as investors chased high-growth manufacturing stories.
- SCI (+7.87%): Despite weak earnings, dividend hopes and long-term shipping outlook supported gains. (Value Research)
- Fortis (+7.70%): Strength came from yield-seeking investors and brokerage upgrades. (Nasdaq)
Top Losers
- ABFRL (-66.59%): Crashed due to the demerger of Madura Fashion; the fall reflects price adjustment. (LiveMint)
- Colgate-Palmolive (-6.48%): Q4 net profit decline led to heavy sell-off. (Moneycontrol)
- Redington (-5.17%): Profit booking after recent highs.
- PEL (-4.24%): Broader risk-off sentiment hurt recent outperformers. (Markets Mojo)
- BSE (-4.22%): Declined ahead of its 2:1 bonus issue record date. (Samayam Telugu)
What Moved Nifty 50 Gainers and Losers?
Gainers
- IndusInd Bank (+1.95%): Despite Q4 issues and internal fraud allegations, some technical buying emerged. (ET Markets)
- Bajaj Auto (+0.53%): Gained due to its defensive nature and low beta appeal. (ET Markets Live)
- JSW Steel (+0.47%): Uptrend supported by 3-month positive momentum and recovery in global steel prices. (ET Markets Live)
Losers
- ONGC (-2.82%): Q4 net profit fell 35% YoY, denting sentiment. (ET Markets)
- Mahindra & Mahindra (-2.73%): Profit-booking after a strong 3-month run. (ET Markets Live)
- Tech Mahindra (-2.04%): Reacted to fears over reduced tech spending in the U.S. (Reuters)
- Hindalco (-2.03%): Hit by volatile global metal prices.
- Wipro (-1.98%): Continued its downward trend amid weak tech sentiment globally.
What Global Factors Drove Sentiment?
A surge in U.S. Treasury yields and concerns over unsustainable fiscal spending rattled global markets. The U.S. government’s approval of a $3.8 trillion stimulus package raised debt fears, further amplified by Moody’s revising its U.S. credit outlook. This had a direct spillover effect on Indian equities, especially IT stocks that depend heavily on U.S. demand.
What’s the Institutional Flow Looking Like?
As of May 21:
- FIIs were net buyers of ₹2,201.79 crore.
- DIIs added ₹683.77 crore.
These flows suggest underlying strength, but updated data for May 22 will reveal if institutions supported the market during the fall.
What Does the Chart Say?
The Nifty formed a bearish candle on the daily chart and is hovering just above the 21-day EMA (24,445). Resistance continues to hold around the psychological 25,000 mark. Traders are likely to see range-bound action unless either side is broken decisively.
What’s on the Radar for May 23?
Corporate Watchlist:
- BSE Ltd. goes ex-bonus for its 2:1 share issue.
- Ashok Leyland will declare its Q4 earnings and is expected to announce a bonus issue.
- LTIMindtree is scheduled to post results, likely impacting tech sentiment.
Global Indicators:
- Movement in crude oil and U.S. bond yields will be key to global risk sentiment.
Sectoral Outlook – What Could Lead or Lag?
| Sector | Outlook | Drivers |
|---|---|---|
| Banking & BFSI | Positive | Healthy earnings, stable credit growth, improved asset quality |
| IT | Cautiously Positive | Fundamentals solid but watch for U.S. demand headwinds |
| Pharma | Positive | Good domestic traction, export revival |
| Auto | Neutral | Near-term headwinds from raw material costs |
| Infra & Capital Goods | Positive | Government capex and order visibility providing tailwinds |
Final Thoughts
The market’s choppiness is likely to persist. While institutions are still buying, global uncertainty — especially out of the U.S. — may keep investors cautious. Upcoming earnings and macro prints will set the next tone.
For now, it’s less about timing the market and more about understanding what’s driving it.
Disclaimer: This blog is for educational purposes only. It is not investment advice. Please consult a SEBI-registered advisor before making any financial decision.
We have covered previous equity sessions in our previous blogs, as mentioned below:
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