Snapping three-day losses, Indian stock indices back in green; Sensex up 410 points

ANI May 22, 2025 193 views

Indian stock markets rebounded with Sensex gaining 410 points after three straight sessions of losses. Sectoral indices like Pharma and Realty drove the recovery amid optimism around India-US trade talks. Analysts warn of cautious sentiment due to global uncertainties and upcoming GDP data. The market remains watchful of Fed policy and fiscal risks affecting foreign investor flows.

"Markets exhibited a broadly positive undertone today, but sentiment remains cautious amid India-US trade uncertainties." – Vinod Nair, Geojit Investments
New Delhi, May 21: After three straight session losses, Indian stock indices soared on Wednesday, possibly due to buying at relatively lower levels.

Key Points

1

Sensex surges 410 points after 3-day losing streak

2

Nifty Pharma and Realty lead sectoral gains

3

Investors await India-US trade deal updates

4

Q4 GDP data release on May 30 crucial for market direction

The indices had slumped in the past three sessions, possibly due to profit booking.

Going ahead, investors now await further updates on India-US trade deal negotiations. US, Commerce Minister Piyush Goyal earlier this week had "good discussions" with US Commerce Secretary Howard Lutnick about expediting the first tranche of the India-US Bilateral Trade Agreement.

On Wednesday, Sensex closed at 81,596.63 points, up 410.20 points or 0.51 per cent, while Nifty closed at 24,813.45 points, up 129.55 points or 0.52 per cent. Barring Nifty consumer durables, all sectoral indices were in the green. Nifty Pharma and Nifty Realty were the top movers.

Nifty India Defence jumped 3.4 per cent. Gold, a key indicator of the financial sector, was trading at USD 3,318 per ounce, up USD 30 or 0.9 per cent.

Sensex is now over 4,000 points below its all-time high of 85,978 points.

Vinod Nair, Head of Research, Geojit Investments Limited said markets exhibited a broadly positive undertone today. However, overall sentiment remained confined within a narrow range, indicating risk of "sell on rallies" strategy in the near future amid escalating uncertainty around India - US trade negotiations. There is a growing perception that India may not derive the anticipated benefits initially projected during the peak of the tariff war, which has since de-escalated," Nair said.

"FIIs turned net sellers due to the concerns over the recent US credit rating downgrade, tax cut plans in the US that could significantly widen the fiscal deficit, and its effect on the upcoming Fed policy next month. This change in stance hints at an increased probability of emerging risk-averse sentiment in the near term," Nair added.

For Indian stock markets, key monitorables going ahead are Q4 GDP numbers and global cues. The official GDP data for Q4 2024-25 is scheduled to be released on May 30 by the National Statistics Office, along with the annual GDP for 2024-25.

During the April-June, July-September, and October-December 2024 quarters, the country's economy, in real terms, observed a growth rate of 6.7 per cent, 5.6 per cent, and 6.2 per cent, respectively. As per the second advance estimates of NSO, the country's economy is projected to grow at 6.5 per cent in 2024-25.

Reader Comments

R
Rahul K.
Finally some green after 3 red days! 💚 This bounce was expected as our markets were oversold. Defence stocks leading the rally shows investor confidence in India's growing military capabilities. Just hoping US trade talks don't spoil the party next week.
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Priya M.
As a small investor, these market swings make me nervous. The experts say "buy the dip" but with US uncertainties and FIIs pulling out, I'm holding my SIPs but not adding fresh money right now. Better safe than sorry!
A
Amit S.
Pharma and realty performing well is interesting - shows domestic demand remains strong despite global headwinds. But RBI should watch inflation carefully if gold prices keep rising. Our middle class invests heavily in gold.
S
Sunita P.
The market recovery is good news but I wish media wouldn't hype daily fluctuations so much. Long-term investors like me focus on fundamentals - and India's GDP growth story remains solid despite quarterly ups and downs.
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Vikram J.
While today's rally is welcome, we must be cautious. The "sell on rallies" warning is valid - many retail investors burned their fingers in 2008 and 2020 by chasing short-term gains. Always have an exit strategy!
N
Neha R.
The US trade deal uncertainty is concerning. We need clarity soon - our exporters and manufacturers are stuck in limbo. Hope our negotiators don't compromise too much just to get any deal done quickly. 🇮🇳

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Sensex Nifty Indian stock market Piyush Goyal US trade deal GDP growth