Indian Equity Benchmarks Edge Up at Open, Financials Lead Gains

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.

Market Update at 10:20 AM: Indian benchmark indices opened slightly higher on Wednesday, recovering from Tuesday’s 1 per cent fall. However, 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.