India's benchmark share market indices, Sensex and Nifty50, started the day's trade almost flat on Monday, May 19, 2025. The Sensex (30 firms index) surged 24.33 points to open at 82,354.92 on Monday. Meanwhile, Nifty50 (index with top 50 firms) tumbled 14.45 points to open at 25,005.35 points.
According to market experts, foreign investors increased their short positions in the derivatives segment during the last trading session. This move suggests that markets could remain volatile in the coming days.
---Advertisement---
At the sectoral level, most indices were trading in the green at the time of filing this report. Nifty Auto saw a healthy rise of 0.55%, while Nifty Pharma gained 0.49%. Nifty FMCG was almost flat with a marginal gain of 0.02%. However, Nifty IT was the only major sector trading in the red.
---Advertisement---
In the broader Asian markets, sentiment remained weak. Japan's Nikkei 225 index declined by 0.36%, Hong Kong's Hang Seng Index was down 0.38%, and Taiwan's Weighted Index fell by 0.54%. South Korea's KOSPI saw a sharper fall, dipping by more than 1% during the early trade.
Overall, mixed global cues and increased short positions by foreign investors are keeping traders cautious as they look ahead.
What Else For Share Market?
VK Vijaya kumar, Chief Investment Strategist, Geojit Investments said, "The prime mover of the ongoing rally in the Indian market is the sustained FII inflows of around 23800 so far this month. An apparently perplexing trend from the last trading day is that the market declined despite 14018 crores of institutional buying (FIIs plus DIIs). This indicates that FIIs are increasing their short positions in the derivatives market. So expect more volatility ahead."
He further added, "An important trend in the market is the sharp rally in defence stocks. Even though this segment has bright medium to long-term prospects, their valuations have become excessive and, therefore, investors have to be extremely cautious. Some profit booking in this segment would be appropriate."
ALSO READ: India’s Foreign Exchange Reserves Reach $690.6 Billion, Highest In 7 Months