Nifty Rebounds, End 3-Day Losing Streak; Realty Stocks Lead Market Rally

The Nifty 50 rose by 0.52 per cent, reclaiming the 24,800 level, while the Sensex gained 0.51 per cent.

Market Update at 4:00 PM: On Wednesday, May 21, Indian equity markets bounced back, breaking a three-day losing streak with a modest uptrend. The Nifty 50 rose by 0.52 per cent, reclaiming the 24,800 level, while the Sensex gained 0.51 per cent. A broad-based recovery was seen across sectors, with all major indices closing in positive territory.

This comeback followed Tuesday’s sharp 1 per cent drop, triggered by aggressive selling from foreign institutional investors (FIIs), who offloaded equities worth over Rs 10,000 crore — the highest single-day outflow since February 28.

The realty sector led the day’s gains, with the Nifty Realty index climbing 1.72 per cent. Raymond saw the strongest move in the pack, rising over 2.5 per cent. Pharma stocks also saw buying interest, advancing 1.2 per cent, aided by the U.S. decision to exclude generic drugs from future price control measures.

Among the notable performers, Dredging Corporation rallied 10.75 per cent after turning profitable for the quarter. On the flip side, IndusInd Bank slipped 1.57 per cent as investors turned cautious ahead of its quarterly earnings report.

Major contributors to the Nifty’s rise included:

• HDFC Bank (+14.14 pts)
• ICICI Bank (+12.25 pts)
• Bharti Airtel (+8.91 pts)

Meanwhile, the index was held back slightly by:

• Kotak Bank (-7.48 pts)
• ITC (-4.5 pts)
• JSW Steel (-3.09 pts)

Mid-Cap and Small-Cap indices also ended on a strong note, gaining 0.78 per cent and 0.38 per cent, respectively. Market breadth was broadly positive: out of 2,941 stocks on the NSE, 1,753 advanced, 1,095 declined, and 95 remained unchanged.

The session saw 50 stocks hitting fresh 52-week highs, while 17 touched 52-week lows. Additionally, 75 stocks were locked in upper circuits, and 65 hit their lower circuit limits.

Market Update at 12:30 PM: India’s key stock indexes recovered on Wednesday, reversing losses from the previous session, with notable gains in financial and pharmaceutical sectors.

By 12:05 p.m. IST, the Nifty 50 climbed 0.43 per cent to 24,790, while the BSE Sensex advanced 0.53 per cent to reach 81,623. All 13 sectoral indices were trading in the green. Broader market indices, including small-cap and mid-cap segments, also edged up by 0.4 per cent each.

Financial stocks, represented by the Nifty Finance index, rose 0.9 per cent after falling 1.2 per cent a day earlier. HDFC Bank, the largest constituent on the indices, gained 1.5 per cent.

The pharma index surged 1.7 per cent, bouncing back from the prior day’s 1.3 per cent drop. Investor interest was lifted after the U.S. health department indicated that its upcoming measures to cut healthcare costs would target branded drugs, sparing generics and biosimilars. Eighteen out of twenty stocks in the sector gained.

Auto stocks also regained ground, with the Nifty Auto index rising 1.4 per cent following Tuesday’s 2.2 per cent decline.

Meanwhile, shares of Dredging Corporation soared 13.6 per cent after the company posted a quarterly net profit, reversing a loss recorded in the same period last year.

Market Update at 10:20 AM: Indian benchmark indices opened slightly higher on Wednesday, recovering from Tuesday’s 1 per cent fall. However, analysts noted that gains might remain limited due to persistent concerns over foreign investor outflows.

As of 9:19 a.m. IST, the Nifty 50 rose by 0.11  per cent to 24,711.2, while the BSE Sensex climbed 0.17 per cent to 81,327.61.

Out of the 13 major sectoral indices, nine opened in the green. Broader markets, including small-cap and mid-cap segments, traded nearly unchanged in early trade.

Financial stocks edged up 0.3 per cent, recovering some losses after falling 1.2 per cent in the previous session. The IT sector also gained 0.3 per cent, following a 2.6 per cent cumulative decline over the past three sessions.

The sharp drop in both the Nifty 50 and Sensex on Tuesday was attributed to heavy selling by foreign portfolio investors, who offloaded shares worth Rs 100.2 billion (USD 1.2 billion) — the highest single-day outflow since February 28, according to provisional data.

Pre-Market Update at 8:00 AM: Indian equity markets are likely to begin Tuesday, May 21, 2025, on a positive note, as suggested by early trends from GIFT Nifty. As of 7:25 am, GIFT Nifty was trading near 24,797, up by 23 points, hinting at a firm start.

While Asian markets were trading in the green, Wall Street closed lower overnight, ending a six-day winning streak for the S&P 500. Meanwhile, India's core sector data for April indicated a significant slowdown. Growth in the eight core industries—coal, crude oil, natural gas, refinery products, steel, cement, electricity, and fertilisers—fell sharply to 0.5 per cent, an eight-month low, compared to 6.9 per cent in April 2024 and 4.6 per cent in March 2025.

Dixon Technologies posted strong financial results for Q4 FY25. The company’s net profit jumped 379 per cent YoY to Rs 465 crore, compared to Rs 97 crore in the same quarter last year. Revenue grew by 120 per cent YoY, reaching Rs 10,304 crore. For the full year, profit increased by 229 per cent to Rs 1,233 crore, and revenue stood at Rs 38,880 crore, a 119 per cent YoY rise. The board also recommended a final dividend of Rs 8 per share.

Investors will keep an eye on several earnings announcements due today, including results from ONGC, Interglobe Aviation, Power Finance Corporation, Mankind Pharma, NTPC Green Energy, Rail Vikas Nigam, Colgate-Palmolive India, Oil India, IndusInd Bank, UNO Minda, Astral Ltd, NALCO, and Ircon International.

On May 20, FIIs net sold equities worth Rs 10,016.10 crore, while DIIs were net buyers at Rs 6,738.39 crore. Indian markets closed in the red on Tuesday, marking their third straight session of losses. The Sensex fell 872.98 points to 81,186.44, and the Nifty 50 lost 261.55 points to close at 24,683.90. Last week’s rally driven by geopolitical and trade-related optimism is now facing profit booking and cautious sentiment.

Asian indices were trading higher despite Wall Street's decline. In Japan, April trade data showed a deficit of 115.8 billion yen versus expectations of a surplus. Exports rose by 2 per cent YoY but slowed from March’s 4 per cent growth. Imports declined 2.2 per cent, better than forecasted.

U.S. markets ended lower due to rising Treasury yields and fiscal worries. The Dow slipped 114.83 points, while the S&P 500 and Nasdaq lost 23.14 and 72.75 points, respectively. The 10-year Treasury yield edged up to 4.477 per cent, and the 30-year yield rose to 4.965 per cent.

Gold prices moved higher as the dollar weakened, pushing spot gold up 0.4 per cent to USD 3,300.72/oz. Crude oil rose over 1 per cent on geopolitical tensions, with Brent crude at USD 66.22 and WTI at USD 62.91 per barrel for July delivery.

For today, Titagarh Rail Systems, Hindustan Copper and Mannapuram Finance continue to remain under the F&O ban list.

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