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All eyes on key earnings and global cues to set the tone for the rest of the day
The Indian stock market opened on a weak note on Thursday, May 22, 2025, with both benchmark indices—Sensex and Nifty—trading significantly lower during the morning session. By 10:30 AM, the BSE Sensex had dropped by 726 points, reaching 80,869.9.
Meanwhile, the Nifty 50 index slipped by 238 points, or 0.95%, to trade at 24,579.6. The decline came amid broad-based selling pressure across sectors and mixed global cues.
Key Market Highlights – Opening Session
Sensex: Down 726 points to 80,869.9
Nifty: Down 238 points to 24,579.6
Nifty Bank: Weak trading trend observed
BSE Midcap Index: Down 0.15%
BSE Smallcap Index: Up 0.25%
The early losses reflect investor caution amid global uncertainties and sectoral profit booking, especially after the strong rally seen in the previous weeks.
Top Gainers and Losers
Top Gainers on BSE:
IndusInd Bank: Gained due to a positive earnings outlook and strong quarterly results
Tata Steel: Saw buying interest amid stable metal prices
Bharti Airtel: Continued to attract investors amid strong telecom sector sentiment
Eternal: Reported robust growth and investor accumulation in early trade
Top Losers on BSE:
Power Grid: Declined due to profit booking and sector rotation
M&M (Mahindra & Mahindra): Slipped on muted earnings expectations
ITC: Witnessed selling ahead of its Q4 earnings results
Bajaj Finserv: Dropped following weak cues in the financial services space
Reliance Industries: Fell due to volatility in oil prices and lower refining margins
Sectoral Overview
The decline in benchmark indices was accompanied by widespread selling across major sectors. Most sectoral indices were trading in the red:
Nifty FMCG: Down over 1%
Nifty Consumer Durables: Also fell more than 1%
Nifty IT: Down by 0.87% as tech stocks faced mild selling pressure
Nifty Pharma: Declined by 0.9% amid concerns over global demand and margin pressure
Only a few defensive or fundamentally strong stocks managed to show resilience, while broader investor sentiment remained cautious.
Broader Market Performance
The performance of broader market indices remained mixed:
BSE Midcap: Marginally down by 0.15%, indicating cautious trading
BSE Smallcap: Inched up by 0.25%, showing selective buying in small and mid-sized companies
The divergence in midcap and smallcap indices suggested a stock-specific trading approach among investors.
Institutional Activity – FIIs & DIIs
On the institutional front, activity was relatively positive on the previous trading day:
Foreign Institutional Investors (FIIs): Net buyers with purchases worth ₹2,201.79 crore on May 21
Domestic Institutional Investors (DIIs): Net buyers with purchases worth ₹683.77 crore
Sustained buying by foreign investors has provided support to the markets in recent weeks, although domestic investors remain more selective amid earnings season.
IPO Market Update
The primary market continued to witness active participation from investors:
Belrise Industries IPO: Entered its second day of subscription today
Borana Weaves Mainline IPO: Reached Day 3 of its offer period
Strong retail and institutional interest in ongoing IPOs indicates a healthy appetite for new listings, despite volatility in the secondary market.
Earnings to Watch
Corporate earnings remain a key focus for the Street. Several companies have already released their quarterly results, while others are scheduled to report soon.
Earnings released or expected reactions:
IndusInd Bank: Reported strong quarterly numbers, supporting early gains
Nalco and Oil India: Results expected to guide sectoral movement
Key upcoming results today:
ITC
Sun Pharmaceutical
Grasim Industries
GMR Airports
Container Corporation of India
Metro Brands
The Ramco Cements
Market sentiment is likely to react to earnings reports from these companies, particularly those in defensive and consumption-oriented sectors.
Commodity Market Highlights
Gold:
Gold prices extended their gains for a third straight session, as the metal benefitted from safe-haven buying and a weaker dollar.
Spot Gold: Rose by 0.7% to $3,312.77 per ounce
US Gold Futures: Gained 0.9% to reach $3,313.50 per ounce
The demand for gold remains strong amid concerns over geopolitical tensions and currency volatility.
Crude Oil:
Oil prices declined in early trading hours following bearish inventory data from the United States.
Brent Crude: Fell by 0.72% to $64.91 per barrel
WTI Crude: Dropped by 0.74% to $61.57 per barrel
Despite earlier gains driven by Middle East tensions, the downward trend reflects worries about lower-than-expected demand and rising inventories.
Global Market Sentiment
Asian markets opened mixed amid investor caution regarding interest rate policies in major economies and uneven corporate earnings. Wall Street closed mostly lower on Wednesday, reflecting the same cautious approach. European markets are expected to open flat to lower, based on futures trends.
These global trends are playing a role in shaping sentiment in Indian markets, especially as global central banks remain non-committal about the timing of rate cuts.
Outlook for the Day
The near-term outlook for Indian equities remains cautious. Traders and investors are watching closely for the following cues:
Key earnings results, particularly from FMCG and pharma majors
Global commodity price movements
Institutional activity trends and FII inflows
Developments in the Middle East and geopolitical stability
Volatility is likely to continue, especially with the market reacting to both domestic earnings and international cues. Sector rotation and profit booking could dominate the day’s trading action, although selective buying in mid- and small-cap counters may provide some support.
Stock markets opened lower on May 22, 2025, as the Sensex and Nifty witnessed sharp declines amid broad-based selling. Weakness in sectors like FMCG, IT, and financials dragged indices down. While institutional buying activity remains strong, cautious investor behavior, profit booking, and global cues are weighing on market sentiment.
The upcoming earnings results from large-cap companies, especially from defensive sectors, will be closely watched for direction. Meanwhile, the commodity market remains active, with gold gaining and crude oil falling.
Traders are expected to follow a wait-and-watch strategy, assessing corporate earnings and global trends before taking fresh positions. The overall outlook remains mixed with a short-term bias towards consolidation or mild correction.