Market Commentary - Pre-Session
GIFT Nifty:
GIFT Nifty May 2025 futures were trading 4 points lower in early trade, suggesting a flat-to-negative opening for the Nifty 50.
Institutional Flows:
Foreign portfolio investors (FPIs) sold shares worth 5,045.36 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,715 crore in the Indian equity market on 22 May 2025, provisional data showed.
According to NSDL data, FPIs have bought shares worth Rs 18255.61 crore in the secondary market during May 2025 (so far). This follows their purchase of shares worth Rs 3243.03 crore in April 2024.
Global Markets:
Most Asian stocks gained on Friday as investors evaluated fresh economic data and monitored diplomatic signals. A call between Chinese Vice Foreign Minister Ma Zhaoxu and U.S. Deputy Secretary Christopher Landau led to an agreement to maintain communication, according to a statement from China's Foreign Ministry. The two officials discussed key bilateral issues, though no further details were provided.
In Japan, the core consumer price index (CPI), excluding fresh food, rose 3.5% year-on-year in April'up from 3.2% in March and marking the highest rate since early 2023. A separate core CPI measure, which strips out both fresh food and energy and is closely watched by the Bank of Japan, rose to 3% from 2.9%, remaining above the central bank's 2% target. Headline inflation held steady at 3.6%.
Investors are also reviewing South Korea's producer price index (PPI) for April and New Zealand's Q1 retail sales figures.
In the U.S., markets closed mixed Thursday. The Dow Jones Industrial Average was nearly flat, falling 1.35 points. The S&P 500 edged down 0.04%, while the Nasdaq Composite rose 0.28%. Concerns about rising interest rates and the growing federal deficit weighed on sentiment. The 30-year Treasury yield climbed to its highest level since 2023 after lawmakers passed a bill that markets believe could widen the deficit.
Meanwhile, the U.S. S&P Global Composite PMI rose to 52.1 in May from 50.6 in April, indicating stronger private-sector activity. The Manufacturing PMI climbed to 52.3 from 50.2, and the Services PMI rose to 52.3 from 50.8.
Domestic Market:
The domestic equity benchmarks ended sharply lower Thursday, echoing a global selloff triggered by rising bond yields and renewed fiscal concerns in major economies. The Nifty closed below the 24,650 mark, with IT stocks leading the decline on heightened fears surrounding the U.S. fiscal outlook. FMCG and energy stocks also came under pressure. Adding to the volatility was the Nifty's weekly expiry, often a catalyst for exaggerated intraday swings. The S&P BSE Sensex tanked 644.64 points or 0.79% to 80,951.99. The Nifty 50 index tumbled 203.75 points or 0.82% to 24,609.70.
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