📉 Indian Stock Market Plummets: Sensex and Nifty50 Experience Sharp Decline on May 22, 2025

 📉 Indian Stock Market Plummets: Sensex and Nifty50 Experience Sharp Decline on May 22, 2025

     

Overview

                On May 22, 2025, the Indian stock markets witnessed a significant downturn, with key benchmark indices experiencing substantial losses. The BSE Sensex plunged over 1,000 points, settling at 80,649.22, a decrease of approximately 1.16%. Similarly, the Nifty50 index dropped below 24,550, closing at 24,524.75, down by 289 points or 1.16% .

Contributing Factors

Several elements contributed to the market's decline:

1. Spike in U.S. Treasury Yields: Yields on longer-dated U.S. Treasuries hit their highest levels in 18 months, with the 30-year bond yield remaining above 5%. Rising yields tend to divert capital away from equities, especially in emerging markets like India .@EconomicTimes

2. U.S. Fiscal Concerns: Investor sentiment was dampened by Moody's downgrade of the U.S. credit rating, citing concerns over the country's rising debt burden. This downgrade intensified global risk aversion, affecting markets worldwide .@EconomicTimes+1Business Standard+1

3. Weak U.S. Bond Demand: A tepid response to a $16 billion sale of 20-year U.S. bonds indicated declining confidence in U.S. debt instruments, further unsettling global markets .@EconomicTimes

4. Technical Correction: After a prolonged bullish trend, the markets experienced a technical pullback, leading to profit booking across various sectors .

Sectoral Impact

All 13 sectoral indices on the NSE were in negative territory, with the heavyweight IT index falling 1.7%. The FMCG, pharma, banking, and financial services indices also contributed to the sharp decline .Angel One+7India Today+7Goodreturns+7

 

Top Gainers and Losers

Top Gainers:

• Tata Steel: Gained 0.65%, buoyed by optimism about global steel demand and positive cues from Chinese stimulus measures .Groww+1Goodreturns+1

• Bharti Airtel: Increased by 0.56%, supported by strong subscriber additions and positive management commentary on ARPU growth .Groww

• Jio Financial Services: Rose by 0.44%, as investors showed renewed interest in its digital lending initiatives and recent fintech partnerships .Groww

Top Losers:

• Mahindra & Mahindra (M&M): Experienced a decline of 2.52% due to concerns over rural demand and rising input costs .

• Power Grid Corporation: Fell by 2.36%, attributed to muted growth in transmission revenues and rising operational costs .Groww

• Tata Motors: Decreased by 1.93%, impacted by profit booking and concerns about margin pressures from higher input costs .Groww

Investor Sentiment

The sharp decline has led to heightened caution among investors. Market analysts suggest closely monitoring global economic indicators and domestic policy developments to navigate the current volatility.