Indian Equity Markets Open Flat as Sun Pharma Decline Offsets Broader Sector Gains

As of 9:20 a.m. IST, the Nifty 50 edged up by 0.13 per cent to 24,637.85, while the BSE Sensex was marginally higher by 0.04 per cent, trading at 81,055.12.

Market Update at 10:20 AM: India's benchmark equity indices opened on a flat note this Friday, as early gains in broader sectors were weighed down by a sharp decline in Sun Pharmaceutical Industries. Investor sentiment remained cautious due to concerns over foreign fund flows and uncertainty surrounding the U.S. fiscal situation.

As of 9:20 a.m. IST, the Nifty 50 edged up by 0.13 per cent to 24,637.85, while the BSE Sensex was marginally higher by 0.04 per cent, trading at 81,055.12.

Out of 13 key sectoral indices, 10 were in the green. However, Small-Cap stocks underperformed, with the Nifty Small-cap index slipping 0.3 per cent, and the Nifty Mid-Cap index declining by 0.1 per cent.

The pharmaceutical sector saw notable pressure, falling 1.5 per cent, largely due to a 4 per cent drop in Sun Pharma shares. Despite reporting a rise in adjusted profit for the March quarter, driven by demand for rare disease treatments.

Pre-Market Update at 8:00 AM: Indian equity markets are expected to open on a firm note this Friday, May 23, following mixed global signals. As of 7:20 am, Gift Nifty was trading around 24,684, indicating a 30-point rise from the previous close.

Asian indices traded mostly in the green, while U.S. markets ended flat on Thursday. The market mood in the U.S. turned cautious after the House of Representatives narrowly passed President Donald Trump’s tax reform proposal, intensifying concerns around growing federal debt levels.

In a slight positive shift, Morgan Stanley has revised its forecast for India’s GDP growth. The firm now expects India to grow by 6.2 per cent in FY2026, up from the previous estimate of 6.1 per cent, and projects 6.5 per cent growth for FY2027, up from 6.3 per cent.

On the domestic front, the Sensex is set for a rejig from June 23. Trent, the retail arm of the Tata Group, and Bharat Electronics Ltd (BEL) will replace Nestle India and IndusInd Bank in the 30-share index.

Stock-specific activity will remain in focus as the Q4 earnings season continues. Several large and mid-cap companies are slated to report their results today.

Companies scheduled to release Quarterly Results include JSW Steel, BEML, Ashok Leyland, Glenmark Pharma, AIA Engineering, Narayana Hrudayalaya, Balkrishna Industries, Timken India, Devyani International, Reliance Infrastructure, and Aditya Birla Fashion & Retail.

On May 22, foreign institutional investors (FIIs) net sold equities worth ₹5,045.36 crore. Meanwhile, domestic institutional investors (DIIs) remained net buyers with purchases totaling ₹3,715 crore.

Domestic markets slipped into negative territory on Thursday amid global uncertainties, premium valuations, and geopolitical tensions. The Sensex dropped 644.64 points to end at 80,951.99, while the Nifty 50 declined by 203.75 points, closing at 24,609.70.

With F&O expiry around the corner and concerns around U.S. bond yields, volatility is expected to increase, potentially leading to range-bound movement in the coming sessions.

Asian stocks traded higher, buoyed by regional economic data. Japan’s inflation saw a sharp rise in April, with the core CPI—excluding fresh food but including energy—rising 3.5 per cent YoY, beating expectations of 3.4 per cent and marking a significant jump from March's 3.2 per cent.

U.S. equity indices remained largely flat during Thursday’s trade. The Dow Jones edged down 1.35 points, while the S&P 500 shed 2.60 points. The Nasdaq, however, advanced 53.09 points, supported by tech stocks.

Yields on U.S. 30-year Treasury bonds touched a 19-month high before easing slightly to 5.0521 per cent. The 10-year note also cooled to 4.551 per cent after hitting an intraday high of 4.629 per cent.

Crude oil prices continued their downward trend, set to record their first weekly decline in three weeks due to rising OPEC output. Brent crude was down 0.42 per cent at USD 64.17 per barrel, while WTI fell 0.52 per cent to USD 60.88.

Gold prices inched higher amid a weakening dollar and safe-haven demand. Spot gold rose to USD 3,299.79 per ounce, gaining nearly 3 per cent this week—its strongest weekly performance since early April.

For today, Titagarh Rail Systems, Dixon Technologies, RBL Bank and Mannapuram Finance continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.