Indian Stock Market Opens with Minor Gains Amid Volatility

On May 23, 2025, India's stock market indices, Sensex and Nifty50, opened with minor gains despite signs of volatility. The Sensex fell slightly, while the Nifty50 saw an increase. Broader market indices remained positive, with various sectors showing gains. However, foreign institutional investors exhibited significant selling activity, raising concerns about market stability. Experts attribute the volatility to global bond market fluctuations and suggest that as global sentiment improves, Indian markets may benefit from domestic factors. This article delves into the current state of the Indian stock market and its influencing factors.

By Narendra Chaudhary May 23, 2025, 10:53 IST

Market Overview

On Friday, May 23, 2025, India's primary stock market indices, the Sensex and Nifty50, began trading with slight increases. The Sensex, which tracks 30 major companies, fell by 55.48 points, starting at 80,896.51. In contrast, the Nifty50, representing the top 50 firms, rose by 29.80 points to open at 24,639.50.

The Indian stock market exhibited fluctuations, primarily influenced by unpredictable foreign portfolio investor (FPI) activities. Despite a generally flat opening, broader indices showed positive movement. The Nifty Next 50 increased by 0.18%, while the Financial Services index saw a modest rise of 0.06%. The Nifty Bank index remained stable but positive, and both the Nifty Midcap and Nifty Smallcap indices were also trading in the green.

Sector Performance

In terms of sector performance, all indices except for Nifty Pharma and Nifty Healthcare opened positively. The Nifty Auto index gained 0.29%, Nifty FMCG rose by 0.76%, and Nifty IT increased by 0.16%. Additionally, the Nifty Media index saw a gain of 0.1%, while the Nifty50 Metal index added 0.28% during the initial trading session.

Gainers and Losers

Among the top gainers in the early session were Grasim, Trent, ITC, BEL, and SBI Life. Conversely, the leading losers included Sun Pharma, Dr. Reddy, M&M, Titan, ONGC, and Cipla.

Institutional Activity

On the institutional side, foreign institutional investors (FIIs) sold shares worth Rs 5,045 crore in the cash market on May 22, while domestic institutional investors (DIIs) purchased equities valued at Rs 3,715 crore.

Global Influences

Internationally, the approval of the US tax and spending bill has bolstered key economic strategies under Trump's second term. However, concerns regarding the fiscal deficit and rising long-term bond yields have contributed to market apprehension. Analysts suggest that the situation will stabilize as markets adjust to these developments.

Market Volatility Insights

Experts attribute the current market volatility to disturbances in global bond markets. FPIs are frequently altering their positions, buying stocks one day and selling them the next, which adds to the uncertainty in Indian markets.

Banking and market expert Ajay Bagga commented, "The Indian markets are experiencing significant volatility in FPI flows, with large outflows one day followed by inflows and then more outflows. Clearly, FPIs are unsettled by the turmoil in global bond markets, prompting some to withdraw in advance. This creates an overhang on a market that is benefiting from several domestic tailwinds. As global sentiment improves, we can anticipate that Indian markets will gain from a domestic focus."