Business APAC
May 23, 2025
The Indian stock market didn’t quite know which way to go on Thursday. The Nifty 50 managed to gain a little, but the Nifty Bank index was a bit all over the place, and the Sensex ended up lower. It looks like investors are playing it safe, watching what’s happening in India and overseas.
Bank Stocks Lost Some Ground, But Broader Market Stayed Up
The Nifty Bank index went down a bit during the day. Some of the big bank stocks saw people taking profits – ICICI Bank, Kotak Mahindra Bank, and Axis Bank dropped between 0.4% and 1.2%. State Bank of India, though, managed to stay put, even climbing a tiny 0.3%.
When the market closed, the Nifty Bank index was down 0.27% at 47,382.55. The Nifty 50, on the other hand, inched up 0.18% to close at 22,145.65. The Sensex, however, lost 112 points, finishing at 73,456.91, making for a mixed day overall.
What’s Shaking the Market: Local and Global Stuff
A few things made the Indian stock market feel a bit uncertain. U.S. stocks were a bit soft overnight, other Asian markets weren’t doing much, and everyone’s a bit cautious before new economic numbers come out from around the world. Back home, it seems investors decided to cash in some profits from banking stocks, which had a good run recently.
“It’s not like bank stocks are suddenly bad value,” said Ankur Mishra, a fund manager over at Motilal Oswal AMC. “But things are settling down for a bit is healthy and what we expected. Lots of investors are just moving their money into other areas.“
Analysts Think Nifty Bank Will Stay in a Rut (For Now)
Looking at the charts, analysts reckon the Nifty Bank index will probably just move in a small range since there’s nothing big happening to push it one way or the other. They see support around the 47,000 mark, and if it goes up, 47,900 might be a hurdle.
The India VIX, which is a way to measure how jumpy traders are feeling, went up nearly 2% to 13.27. This hints that traders are getting a bit more nervous, especially with important economic data due from around the world soon.
Big Money Moves: Who’s Buying What
The big institutional investors made their mark on Thursday. Early numbers show that foreign institutional investors (FIIs) were mostly selling financial stocks. Meanwhile, domestic institutional investors (DIIs) kept on buying shares in big IT and FMCG companies.
This switch shows they’re playing it safe with all the global uncertainty. “Earnings season is mostly over and there’s nothing new to get excited about, so funds are moving to safer bets with steady money coming in,” explained Priya Menon, Chief Investment Strategist at FinEdge Capital. “The Nifty Bank index is feeling a bit of pressure now, but it could bounce back if banks keep lending well and loans stay good.“
Market on Edge, Investors Wary
Thursday’s ups and downs showed that investors are feeling cautious. While the sectors in the Nifty 50 held up, banking stocks in the Nifty Bank index had a tougher time.
As we get further into the quarter and see what policymakers are up to, both big and small investors will likely keep playing it careful. The Nifty Bank index might not make any big moves in the short term, but how it does will still be a big sign of how people are feeling about money in India.
