India’s share market indices, Sensex and Nifty50, ended the day’s trade in red on Monday, May 19, 2025. The Sensex (index with top 30 firms) tumbled 271.17 points to close at 82,059.42 on Monday. Meanwhile, Nifty50 (index with top 50 firms) was down 74.35 points to close at 24,945.45 points.
In the Monday morning, the Sensex surged 24.33 points to open at 82,354.92. Meanwhile, Nifty50 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.
Overall, mixed global cues and increased short positions by foreign investors are keeping traders cautious as they look ahead.
Foreign portfolio investors (FPIs) have infused Rs 26,103 crore in the Indian market in May 2025, so far. Notably, the invested Rs 4,223 crore in Indian equities in April, which was the first month of this calendar year, which saw the inflows from foreign investors. However, taking the cumulative data of 2025 till now, these investors have sold Indian equities worth over Rs 86,248 crore in 2025 so far, according to data available on the website of National Securities Depository Limited (NSDL).
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.”
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