😷 Global Covid Fears & Trade Worries Drag Markets Down; Nifty Slips 0.8%, Caution Prevails

📰Daily Market Wrap-Up by Stock Whisperers-May 22

Author

thestock whisperers
May 22, 2025

22-May-2025

📈 Market Overview:

Summary of the Day's Market Performance

Market Overview

  • The Sensex fell 640.16 points (-0.8%) to close at 79,380.33, resuming its downward trend.

  • The Nifty dropped 96.16 points (-0.8%) to 24,104.59, slipping below 24,200.

  • Midcaps (-0.5%) and Smallcaps (-0.2%) saw smaller cuts, showing relative resilience.

  • All sectors ended in the red, with FMCG (-1.4%), IT (-1.3%), and Auto (-1%) facing the heaviest selling pressure.

💸 Market Transactions:

  • Foreign Institutional Investors (FII): Sold ₹5,045.36 crore

  • Domestic Institutional Investors (DII): Bought ₹3,715.00 crore

FII outflows weighed on sentiment, though DII buying cushioned the fall.

📊📑 Important Observations and Market Sentiments: Editor Special

  • Markets turned bearish, driven by global concerns over rising Covid cases in Singapore and Hong Kong, raising fears of disruptions to India’s bull run. Weak global cues, including Moody’s US credit rating downgrade (Aa3) and uncertainty over US-India trade deals under Trump’s tariff policies, added to caution.

  • Selective buying in Midcaps and Smallcaps, along with stable Q4 earnings, provided some support. Analysts see Nifty support at 24,300–24,400 and resistance at 24,800, recommending selective investments in defense (BEL), metals (NMDC), and infrastructure (RVNL) amid volatility.

  • Domestic stability from the RBI’s 6.00% repo rate and low inflation (March CPI at a 5-year low) offers a buffer, but global risks may pressure markets in the near term.

❓ DO YOU KNOW?

Singapore and Hong Kong reported a 30% surge in Covid cases this week, the highest since early 2023, prompting fears of renewed supply chain disruptions impacting global markets.

📰Stock News:

Key Stock Movements and News

  • Top Gainers: Astral, NMDC, Max Financial Services, and PB Fintech

  • Top Losers: Aditya Birla Fashion and Retail, Colgate-Palmolive, Vodafone Idea, and IndusInd Bank

  • Astral gained significantly, supported by robust demand in the pipes and fittings sector.

  • BSE cracked 4% after reports that NSE asked SEBI to change its weekly expiry date to Tuesday.

  • NMDC rose, benefiting from stable global commodity prices and strong metal sector sentiment.

  • Bajaj Auto gained 1% after announcing plans to acquire a majority stake in Austria’s KTM AG.

  • Aditya Birla Fashion and Retail (ABFRL) plummeted 7.35%, the biggest loser, due to profit-taking and weak retail sentiment.

  • Colgate-Palmolive fell, impacted by the FMCG sector sell-off and a cautious consumer spending outlook.

  • PNB Housing Finance gained after a 1.73 crore share block trade; Carlyle’s $308 million stake sale plan remained in focus.

Your Weekly Stock Markets Rundown: 🌪️ After the Storm: 🚀 Nifty Tops 25,000! FIIs Fuel Rally Amid Cooling Inflation & Global Trade Hopes 🌏📊

May 19- May 23, 2025

The week of May 19-23, 2025, sees the Nifty briefly surpassing 25,000 before retreating, reflecting mixed global cues and valuation concerns despite FIIs’ Rs 5,393 crore buying spree. Easing US-China trade tensions and controlled inflation fuel optimism, but Japan’s economic contraction and fading Asian market gains signal caution. Key data like India’s PMI, US jobless claims, and final Q4 earnings from ITC and Sun Pharma will guide sentiment. Investors should focus on heavyweights and defensive sectors while monitoring global developments for potential volatility.

👀Stocks to Focus:

  • NMDC: Metal sector strength may persist.

  • Astral: Demand in pipes and fittings to watch.

  • ABFRL: Retail sector weakness to monitor.

📝Summary:

Indian markets fell 0.8%, with Nifty at 24,104, as global concerns over rising Covid cases and a US credit rating downgrade triggered selling. FMCG, IT, and Auto led losses, despite DII buying. Selective Midcap/Smallcap gains and stable Q4 earnings offer hope—volatility persists, focus on Nifty support at 24,300!

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Disclaimer: The Stock Whisperers is a media platform providing educational and informational content related to the stock market. We do not offer investment advice, stock recommendations, or tips. Readers should consult a SEBI-registered advisor before making any investment decisions.