Nifty Ends Lower; IT Stocks Drag the Indices Down as Bond Yields in U.S. & Japan Edged Higher
On Thursday, May 22, Indian benchmark indices closed lower, as concerns over U.S. fiscal policy and elevated Treasury yields sapped global investor sentiment.
The Nifty 50 declined by 0.82%, closing near the 24,600 level, while the Sensex fell by 0.79% to end below the 81,000 mark. Both indices faced broad-based selling, with IT stocks emerging as the biggest drag on overall market performance.
Bond yields in both the U.S. and Japan edged higher due to growing concerns around rising debt levels. Higher U.S. Treasury yields typically draw foreign investment away from equities in emerging markets like India, adding to the selling pressure.
IT stocks, represented by the Nifty IT Index, which are heavily dependent on U.S. revenues, fell 1.31% as concerns over America’s fiscal health deepened. The Nifty Finance index also saw a drop of 0.43%.
Stock-Specific Highlights
Among individual stocks,
- IndusInd Bank experienced sharp intraday swings after announcing its highest-ever quarterly loss, linked to previously disclosed accounting discrepancies due to alleged employee fraud. The stock initially declined by almost 5% but later recovered, rising over 3% by the end of the session.
- Colgate-Palmolive (India) slipped 6% following a weaker fourth-quarter profit, impacted by muted urban consumption and growing competitive pressure.
- Power Grid Corporation declined by around 1.77% after the company flagged a possible reduction in dividends and announced plans to increase capital expenditure over the next two years.
Nifty FMCG - Top Loser of the Day
The Nifty FMCG index declined by 1.44% on Thursday, falling below the 200-day exponential moving average (DEMA). Varun Beverages slipped more than 2%, the most among the FMCG stocks, dragging the Nifty FMCG index down.
Nifty 50: Top Pullers and Draggers of the Day
The key drivers of the index gains were:
- Bharti Airtel: +5.83 points
- Indusind Bank: +2.66 points
- Bajaj Auto: +1.62 points
On the other hand, these stocks weighed on the index:
- M&M: -21.89 points
- Infosys: -20.83 points
- Reliance: -18.51 points
Broader Markets Negative
The broader market indices ended in the red, with the Mid-cap and Small-cap 100 indices dropping by 0.52% and 0.26%, respectively, while all major sectoral indices ended in the negative territory except Nifty Media.
Market Breadth
As of May 22, 2025, the Indian stock market witnessed negative market breadth. Out of 2,949 stocks traded on the NSE, 1,275 advanced, 1,582 declined, and 92 remained unchanged.
A total of 45 stocks touched their 52-week highs, while 17 hit their 52-week lows. Additionally, 84 stocks were locked in their upper circuits, whereas 53 stocks were in lower circuits.
Disclaimer: The article is for informational purposes only and not investment advice.
