India’s share market indices, Sensex and Nifty50, ended the day’s trade in red on Tuesday, May 20, 2025. The Sensex (index with top 30 firms) tumbled 872.98 points to close at 81,186.44 on Tuesday. Meanwhile, Nifty50 (index with top 50 firms) was down 261.55 points to close at 24,683.90 points.
In the Tuesday morning, the Sensex surged 47.73 points to open at 82,107.15. Meanwhile, Nifty50 tumbled 50.75 points to open at 24,996.20 points.
Indian benchmark indices tracked the cues from the US markets, which also ended flat amid ongoing concerns over tariff wars. The market mood remained cautious globally as trade tensions and fiscal issues in the US cast a shadow on investor sentiment.
What Else For Share Market?
Experts noted that pressure in the US markets is evident, largely due to the lingering effects of tariff wars under President Trump’s administration. The tariff policy, which includes a minimum of 10% duty on almost all imports into the US, has raised concerns about the future of global trade. The impact of this trade policy has been felt across financial markets worldwide, including India. Adding to the pressure, the White House and the US Treasury strongly opposed Moody’s recent downgrade of the US’s “AAA” credit rating.
Despite these developments, US stock futures remained weak throughout the Asian and European trading sessions but managed to recover and close in green for the sixth consecutive day.
Notably, yields on US 30-year Treasury bonds briefly crossed the 5 per cent mark but ended the day below that level. The US dollar also weakened, which some experts believe was expected in such an economic environment.
Another major concern for the US economy highlighted by the experts is the wide fiscal deficit, which continues to grow amid the Trump administration’s tax cuts. Analysts point out that this deficit is being financed by what is often referred to as the “exorbitant privilege” of the US dollar being the preferred global reserve currency.
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