The Indian stock market took a hit on Thursday, May 22, 2025, as global jitters and sector-specific pressures dragged indices lower. Despite a mid-session tumble, the NSE NIFTY50 managed to claw back from its day’s low of 24,462.40 to close at 24,609.70, down 203.75 points or 0.82%. Similarly, the S&P BSE SENSEX, which dipped to 80,489.92 during intraday trading, ended the day at 80,951.99, shedding 644.64 points or 0.79%. While the recovery offered some relief, the broader market sentiment remained cautious, with IT, FMCG, and oil and gas sectors leading the downturn.
A Rough Day for Indian Markets
The market’s performance reflected a ripple effect from global cues, particularly after a sharp sell-off in the US markets on Wednesday. Investors worldwide grew wary of rising US treasury yields, fueled by concerns over a potential widening of the federal deficit if President Donald Trump’s proposed tax-cut bill gains traction. The Dow Jones Industrial Average plummeted 816.80 points (1.91%) to 41,860.44, the S&P 500 fell 95.85 points (1.61%) to 5,844.61, and the Nasdaq Composite dropped 270.07 points (1.41%) to 18,872.64. This unease spilled over into Asian markets, with Japan’s Nikkei 225 sliding 0.85% to 36,985.87, Hong Kong’s Hang Seng falling 1.2% to 23,544.31, and South Korea’s KOSPI tumbling 1.23% to 2,593.67. China’s Shanghai Composite also edged down 0.22% to 3,380.19.
In India, the IT sector bore the brunt of the global tech sell-off, as shares of IT services companies mirrored the dip in US tech stocks. FMCG and oil and gas sectors also struggled, dragging most sectoral indices into the red. The sole exception was NIFTY Media, which managed to close in positive territory, offering a rare bright spot in an otherwise gloomy session.
Broader Market and Key Statistics
The broader market followed the downward trend, with the NIFTY Midcap 100 index slipping 0.52% to 56,324.85 and the NIFTY Smallcap 100 index declining 0.26% to 17,503.10. On the NSE, 2,949 stocks were traded, with 1,275 advancing, 1,582 declining, and 92 remaining unchanged—a clear tilt toward bearish sentiment. The market capitalization of NSE-listed firms stood at ₹436.62 lakh crore by the session’s close.
Despite the negative breadth, some stocks stood out. A total of 45 stocks hit their 52-week highs, while 17 touched their one-year lows. Additionally, 84 stocks reached their upper circuit limits, and 53 hit their lower circuit bands. The India VIX, a measure of market volatility, eased slightly by 1.65% to 17.26, signaling a touch of calm amid the storm.
Investor Activity
Foreign institutional investors (FIIs) remained active, snapping up equities worth ₹2,201.79 crore on a net basis on Wednesday, according to exchange data. Domestic institutional investors (DIIs) also joined the buying spree, purchasing ₹683.77 crore worth of equities. This inflow provided some cushion to the market, likely aiding the NIFTY50’s recovery from its intraday lows.
What’s Next for the Market?
Thursday’s session underscored the Indian market’s sensitivity to global developments, particularly in the US. With concerns over treasury yields and potential policy shifts looming, investors are likely to remain cautious in the near term. The IT sector, a heavyweight in India’s indices, may continue to face headwinds if global tech sentiment doesn’t stabilize. However, the market’s ability to recover from intraday lows suggests resilience, and the buying interest from FIIs and DIIs could provide support in the sessions ahead.
For now, traders and investors will be closely watching global cues, particularly US economic data and policy updates, to gauge the next move. The NIFTY50’s ability to hold above 24,600 is a small victory, but the market will need stronger catalysts to reverse the current bearish tide.
