Indian Stock Market Update: Sensex and Nifty50 End Week on a Low Note

This week, India's stock market indices, Sensex and Nifty50, ended on a negative note despite a strong overall performance. The Sensex fell by 200.15 points, while Nifty50 dropped 42.30 points. The market had previously surged due to easing tensions between India and Pakistan, which positively influenced foreign investments. However, fluctuations were noted, including a significant net outflow on Tuesday. Overall, foreign investors have infused Rs 18,620 crores into Indian equities this month. Read on to learn more about the factors affecting the market.

By Narendra Chaudhary May 17, 2025, 14:29 IST

Market Performance Overview

On Friday, May 16, 2025, India's key stock market indices, the Sensex and Nifty50, experienced a decline. The Sensex, which tracks the top 30 companies, fell by 200.15 points, finishing at 82,330.59. Similarly, the Nifty50, representing the top 50 firms, dropped 42.30 points, closing at 25,019.80. Out of the stocks included in the Sensex, 17 saw gains while 13 faced losses.

Weekly Market Trends

In the previous week, on April 25, 2025, the Sensex had a significant drop of 880.34 points, ending at 79,454.47, while the Nifty50 decreased by 265.80 points to 24,008. However, analyzing the week overall, the Sensex gained 2,876.12 points, and the Nifty50 rose by 1,011.8 points. Notably, foreign investors contributed Rs 18,620 crores to Indian equities this month.

Factors Influencing the Market

The Indian stock market had a robust week, driven by global optimism and the easing of trade tensions. The week commenced positively, with the Sensex climbing 2,975.43 points to close at 82,429.90 on May 12, 2025, while the Nifty50 increased by 916.70 points to 24,924.70. This surge followed a ceasefire agreement between India and Pakistan, which halted military actions along their border. This agreement came after a tragic terror attack in Pahalgam that claimed 26 lives. Although the ceasefire is in effect, India continues to enforce certain measures, including the suspension of the Indus Waters Treaty.

Investment Trends

The easing of tensions between India and Pakistan significantly impacted the stock market this week. Foreign Portfolio Investors (FPIs) made substantial investments, contributing Rs 4,452.3 crore to Indian equities from May 13 to May 16, according to data from the National Securities Depository Limited (NSDL). The highest investment was recorded on Friday, with FPIs injecting a net amount of Rs 5,746 crore. However, the market did experience fluctuations, including a net outflow of Rs 2,388 crore on Tuesday, suggesting some uncertainty or profit-taking among foreign investors. Overall, the total FPI investment in Indian equities for May has reached Rs 18,620 crore.