India’s share market indices, Sensex and Nifty50, ended the day’s trade in green on Friday, May 23, 2025. The Sensex (index with top 30 firms) surged 769.09 points to close at 81,721.08 on Friday. Meanwhile, Nifty50 (index with top 50 firms) was up 243.45 points to close at 24,853.15 points.
In the Friday morning, the Sensex tumbled 55.48 points to open at 80,896.51. Meanwhile, Nifty50 was up 29.80 points to open at 24,639.50 points.
Indian share market indices showed signs of volatility at the opening, mainly due to uncertain foreign portfolio investor (FPI) activity. Despite the overall flat start, broader market indices were in the green.
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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