India’s benchmark share market indices, Sensex and Nifty50, started the day’s trade with marginal gains on Friday, May 23, 2025. The Sensex (30 firms index) tumbled 55.48 points to open at 80,896.51 on Friday. Meanwhile, Nifty50 (index with top 50 firms) was up 29.80 points to open at 24,639.50 points.
Indian share market indices showed signs of volatility, mainly due to uncertain foreign portfolio investor (FPI) activity. Despite the overall flat start, broader market indices were in the green. The Nifty Next 50 rose by 0.18%, and the Financial Services index also edged up by 0.06%. The Nifty Bank index opened flat but stayed in the green, while both Nifty Midcap and Nifty Smallcap indices were trading positively.
Among sectoral indices, all except Nifty Pharma and Nifty Healthcare opened with gains. Nifty Auto gained 0.29%, Nifty FMCG was up by 0.76%, and Nifty IT rose 0.16%. Nifty Media was also in the green, gaining 0.1%. Nifty50 Metal added 0.28% during the opening session.
Top gainers in the opening session included Grasim, Trent, ITC, BEL, and SBI Life. On the other hand, top losers were Sun Pharma, Dr Reddy, M&M, Titan, ONGC, and Cipla.
On the institutional front, foreign institutional investors (FIIs) sold equities worth Rs 5,045 crore in the cash market on May 22, while domestic institutional investors (DIIs) bought equities worth Rs 3,715 crore.
Globally, the passage of the US tax and spending bill has given a push to key economic policies under Trump’s second term. However, the resulting impact on fiscal deficit and rising long-term bond yields has added to market nervousness. Experts believe this situation will settle once markets fully absorb the implications.
What Else For Share Market?
Experts said the current volatility in the market is largely due to turmoil in the global bond markets. FPIs are frequently changing their stance, buying equities on one day and selling them the next, adding to the uncertainty in Indian markets.
Ajay Bagga Banking and Market Expert told ANI, “Indian markets are seeing a huge volatility in FPI flows, with large outflows on a day followed by inflows and then again a large chunk of outflows. Clearly the FPIs are rattled by the global bond market turmoil and some are withdrawing in advance. That is an overhang on a market that is benefitting from multiple domestic tailwinds. As the global sentiment improves, we can expect Indian markets to benefit from a domestic focus.”
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