Indian Stock Market Opens Steady Amid Mixed Global Signals

Market Overview
On Friday, May 16, 2025, India's primary stock market indices, the Sensex and Nifty50, began trading nearly unchanged. The Sensex, which tracks 30 companies, dropped by 138.11 points, starting at 82,392.63. Conversely, the Nifty50, representing the top 50 firms, gained 2.55 points, opening at 25,064.65.
Market analysts observed that Indian stocks are experiencing strong foreign inflows, with the indices currently positioned in a historical range where upward momentum is likely to resume. Despite mixed signals from global markets, the overall sentiment remains positive.
Sector Performance
In sector-specific movements, indices like Nifty Auto, Nifty PSU Bank, Nifty Consumer Durables, and Nifty Oil & Gas showed gains in early trading. However, sectors such as Nifty Private Bank, Nifty Realty, Nifty Healthcare, Nifty IT, FMCG, and Media were under pressure, trading in negative territory at the time of this report.
Asian Market Trends
Other Asian markets displayed varied performances. Taiwan's Weighted Index increased by 0.34%, while South Korea's KOSPI remained stable with a slight gain of 0.09%. In contrast, Japan's Nikkei 225 fell by 0.21%, Hong Kong's Hang Seng dropped by 0.76%, and Singapore's Straits Times decreased by 0.18% during the same timeframe.
Expert Insights
Banking and market expert Ajay Bagga commented, "The Indian markets are benefiting from robust foreign portfolio investments, with domestic institutional investors also remaining active buyers. The positive market reaction to the recent assertion of zero tariffs by Trump has bolstered IT, auto, and banking stocks, leading the rally among top market cap stocks."
He further noted, "It has been seven months since the Indian markets reached their all-time highs in late September 2024, placing them in a historical zone where momentum is expected to build again. However, geopolitical tensions and trade tariff concerns continue to pose risks as the markets aim to revisit previous highs in the coming weeks. Caution persists following a significant rally, raising concerns about an overheated market, which has shifted investor interest towards defensive dividend-paying stocks that had lagged recently."