Indian equity markets witnessed a sharp recovery in early trading on Wednesday, May 21, 2025, as investors poured money into major banking stocks. The rally comes after a steep fall in the previous session, reflecting renewed investor confidence amid a broadly positive trend in Asian markets.
The BSE Sensex surged 835.2 points, or 1.02%, to reach 82,021.64, while the NSE Nifty climbed 262.3 points, or 1.06%, to touch 24,946.20, signaling a strong bounceback across frontline indices.
Blue-Chip Banks Drive the Rally
Gains were primarily led by heavyweight banking and financial services stocks. Among top performers on the Sensex were:
- Sun Pharma
- Bajaj Finance
- UltraTech Cement
- Mahindra & Mahindra
- Bajaj Finserv
- Tech Mahindra
- HDFC Bank
- Tata Motors
IndusInd Bank stood out as the only laggard, slightly bucking the bullish trend.
Economic Sentiment Boosted by Moody’s Outlook
Adding to the market optimism, Moody’s Ratings released a report highlighting India’s economic resilience in the face of global trade tensions and new U.S. tariffs. The report emphasized that India’s strong domestic growth, expanding manufacturing base, and infrastructure investments will help cushion the economy from global shocks.
Asian Markets Mostly Positive
Asian equities echoed the positive sentiment with South Korea’s Kospi, China’s SSE Composite, and Hong Kong’s Hang Seng Index trading in the green. However, Japan’s Nikkei 225 registered a minor dip.
Meanwhile, U.S. markets closed lower on Tuesday, reflecting caution ahead of key data releases and continued trade uncertainty.
Other Key Market Updates
- Brent crude oil prices rose 1.62%, reaching $66.44 per barrel, indicating tightening supply concerns.
- Foreign Institutional Investors (FIIs) sold equities worth ₹10,016.10 crore on Tuesday (May 20), suggesting cautious investor behavior after recent volatility.
Context: Previous Session’s Decline
Just a day earlier, on Tuesday, May 20, the Sensex had plummeted 872.98 points (1.06%), ending at 81,186.44, while the Nifty fell 261.55 points (1.05%), settling at 24,683.90. Today’s sharp rebound has effectively erased those losses.
