May 22, 2025
New Delhi, India
Stock Market Today
Indian equity benchmarks ended sharply lower on Thursday, May 22, amid a global risk-off sentiment triggered by growing concerns over the US fiscal health and a spike in Treasury yields. The BSE Sensex plunged 645 points, closing at 81,009.61, while the NSE Nifty50 shed 203.75 points to end at 24,609.70. Intraday, both indices witnessed heightened volatility, with the Sensex briefly dropping over 1,000 points.
The selloff followed a downgrade of the US sovereign credit rating by Moody’s and signs of weak demand at the latest 20-year US bond auction. Investors worldwide are increasingly uneasy about rising US debt levels, especially after the advancement of a massive tax and spending bill by the Republican-controlled House.
Broad-Based Losses Drag Market Lower
The fall was led by heavyweights such as Reliance Industries, Power Grid, ITC, Tech Mahindra, and HCLTech. Sectoral indices were deep in the red, with Nifty Auto, FMCG, IT, Pharma, Consumer Durables, and Oil & Gas falling between 1% and 1.5%. Nifty Bank and Financials also slipped up to 0.7%.
ONGC shares dropped over 3% after posting a 35% YoY decline in Q4 profit, while M&M fell 2%. Despite posting a 62% jump in Q4 net profit, IndiGo shares tumbled nearly 2%, highlighting the cautious sentiment in the market. Meanwhile, Ircon International slipped 5% as its Q4 PAT declined 14% YoY, while Nalco surged over 5% following a doubling of its Q4 profit, boosted by firm aluminium prices.
In the broader markets, the Nifty Midcap index declined 0.35%, while the Nifty Smallcap posted a marginal gain of 0.1%. According to data, the total market capitalization of BSE-listed companies fell by ₹2.6 lakh crore, settling at ₹438.56 lakh crore.
Global Cues Turn Risk-Off
Asian shares followed Wall Street lower, as US stocks tumbled amid debt concerns. The US dollar weakened on fiscal anxiety, while gold prices edged higher as investors sought safer assets. Oil prices, however, eased after a surprise build in US inventories.
Looking ahead, market sentiment remains fragile as investors await more clarity on US fiscal developments and global macroeconomic indicators. Until then, volatility is expected to persist.
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