Why Sensex fell 1000pts, Nifty below 24,550 on May 22? Check reasons here

Why are Sensex, Nifty falling today? Indian benchmark indices – Sensex and Nifty – declined in trade on Thursday, May 22, 2025, primarily due to the global market weakness and renewed concerns over US fiscal health.
The BSE Sensex fell as much as 1.23 per cent or 1,004.95 points to 80,727.11. Similarly, the NSE Nifty50 dropped 1.22 per cent or 304.35 points to 24,509.10.
Broader markets, too, slipped. As of 11:30 AM, the Nifty SmallCap 100 index was down 0.40 per cent, while the Nifty MidCap 100 index slipped 0.68 per cent.
Kranthi Bathini, equity strategist at WealthMills Securities, explained that the market downturn is primarily driven by weakness in global markets. Added to this are concerns over US debt, which could have a ripple effect on other economies, and a natural correction after last month's rally—together forming the key triggers behind the current decline.
Echoing a similar view, Ravi Singh, SVP of retail research at Religare Broking said Indian benchmark indices started the day on a negative note, as global investor confidence weakened due US fiscal uncertainties and rising Treasury yields. Additionally, the earnings of Indian companies present a mixed outlook for fiscal year 2026.
Given this, here are the top reasons behind the stock market's fall:
Weak global cues
Asia-Pacific markets fell Thursday, tracking overnight declines on Wall Street as investors grew cautious over mounting US fiscal concerns.
At last check, Japan's Nikkei was down over 0.7 per cent, while the Topix slipped 0.5 per cent. South Korea's Kospi dropped 1.1 per cent, and Australia's ASX 200 was down 0.4 per cent.
On Wall Street, all three major indexes closed lower. Investors reacted negatively to a surge in Treasury yields, triggered by concerns that a new US budget bill would further stress the country's already major deficit.
The Dow Jones Industrial Average lost 1.91 per cent to 41,860.44. The S&P 500 shed 1.61 per cent to 5,844.61. The Nasdaq Composite slid 1.41 per cent to 18,872.64.
The 30-year Treasury bond yield last traded near 5.09 per cent, hitting its highest level since October 2023. Meanwhile, the 10-year benchmark yield stood at 4.59 per cent.
US debt woes
Gita Gopinath, first deputy managing director of the International Monetary Fund (IMF), has warned that the United States is running excessively large fiscal deficits and must urgently address its 'ever-increasing' debt burden. Her remarks were published in an interview with The Financial Times on Wednesday.
Gopinath's comments came shortly after Moody's downgraded the US sovereign credit rating, citing the federal government's inability to manage its growing $36 trillion debt and persistently high deficits. READ MORE
Most sectors fall
Barring Nifty Media, all other sectoral indices were in the red zone (trading negatively). Nifty Auto was the top laggard, down 1.4 per cent, followed by Nifty FMCG and IT, which declined 1.27 per cent and 1.11 per cent, respectively.
Other sectors including Pharma, PSU Banks, Private Banks, Consumer Durables, and Oil & Gas also posted losses in the range of 0.5 to 1 per cent.
Technicals
According to Singh, both the Nifty and Sensex witnessed selling pressure and are down nearly 1 per cent. Notably, the Nifty has begun trading below its strong support level of 24,800, which is now likely to act as a key resistance in the near-term.
Jigar S Patel, senior manager of equity research at Anand Rathi explained that Nifty recently broke below the key support level of 24,800, following a double top formation on the hourly chart, accompanied by bearish divergence. This breakdown triggered a sharp pullback of nearly 200 points.
'Looking ahead, the 24,800–25,000 zone will act as a critical resistance, while support is now seen in the 24,600–24,500 range. A sustained move above or below these levels will determine the next directional bias.' Patel added.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

News18

27 minutes ago

• News18

Did ICICI Bank Try To Acquire HDFC? What Deepak Parekh Reveals

Last Updated: 'I remember you talking to me said ICICI started HDFC. 'Why don't you come back home?' That was your offer,' Parekh said in interaction with Ex-ICICI CEO Chanda Kochhar. ICICI Bank once tried to merge housing finance firm HDFC with itself before its reverse merger with its own banking arm, HDFC Bank former chairman Deepak Parekh has revealed. In a YouTube video, Parekh, in an interaction with ICICI Bank former MD & CEO Chanda Kochhar, said, 'I remember you talking to me once…you said that ICICI started HDFC. 'Why don't you come back home?' That was your offer." However, Parekh said he declined the offer, saying 'it won't be fair or proper with our name and the bank and all". He also said the HDFC Bank-HDFC reverse merger, which was completed in July 2023, was primarily driven by regulatory pressure. 'The RBI supported us and they pushed us into it to some extent and they helped us…there were no concessions, no relief, no time, nothing but they helped us to go through the process and get the approval," Parekh said. On the reverse merger, Parekh called it 'a sad day and a happy day". He added, 'It's good for the institution. It's good for the country to have large banks. Look at how large Chinese banks are. We have to be bigger, larger in India." Describing the merger as good for the institution, he said, it is good for the country to have large banks. Indian banks must grow through acquisitions to become stronger in future, he added. HDFC Ltd, the parent entity of HDFC Bank, merged with its banking subsidiary to create the country's biggest private sector lender. The merger became effective from July 1, 2023. With the reverse merger, the 44-year-old institution HDFC Ltd faded into memory lane. Interestingly, the creation of HDFC Ltd was financially supported by erstwhile ICICI Ltd, the parent entity of ICICI Bank. The Reserve Bank of India had classified large NBFCs like HDFC, which then held assets exceeding Rs 5 lakh crore, as systemically important — well above the Rs 50,000-crore threshold. (With Inputs from PTI) First Published:

The Hindu

37 minutes ago

• The Hindu

Are foreign university campuses in India truly beneficial?

Every year, thousands of Indian students pursue higher education abroad, with the U.S., Canada, the U.K., and Australia being among the top choices. According to data from the Ministry of Education, the number of Indian students studying overseas increased by 52.2% over five years; from 586,337 in 2019 to 892,989 in 2023. This is due to several factors: the perception of receiving a globally recognised, high-quality education at top-ranked universities; access to cutting-edge research facilities; improved career prospects; international exposure; better job opportunities and higher salaries; a superior quality of life; and relatively smoother immigration processes. Studies indicate that over 75% of Indian students who study abroad intend to work and settle in their host countries, with only a small fraction planning to return to India. This suggests that such students have already considered critical questions such as: What are the advantages of earning a degree from a foreign university? What career opportunities will it open up? New questions Now, with some foreign universities setting up campuses in India, aspiring students are beginning to ask a new set of questions: What are the benefits of earning a degree from an international university's Indian campus? Is it as valuable as studying at the main campus abroad? Will it offer the same academic experience and career prospects? The National Education Policy (NEP) 2020 supports the establishment of independent campuses by foreign universities in India and Union Education Minister Dharmendra Pradhan recently announced that 15 international universities will set up campuses in the country during the current academic year. The University Grants Commission (UGC) has already issued Letters of Intent (LoI) to some institutions, including the University of Liverpool and to the University of Aberdeen to set up branch campuses in Bangalore and Mumbai respectively. According to the specified guidelines, foreign universities seeking entry into India must rank among the top 500 globally, demonstrate subject-specific expertise, and be duly recognised in their home countries to offer academic and research programmes. They will have autonomy in designing their curriculum, managing admissions, setting fee structures and are authorised to award internationally recognised degrees. Foreign universities stand to gain significantly by entering the Indian education sector as they can expand their global footprint, enjoy academic and administrative autonomy, and offer international degrees within India. The presence of top-ranked foreign university campuses in India is also expected to bring several advantages to the country. It can introduce world-class education; help raise domestic academic standards to global levels and promote knowledge exchange. Participation in conferences organised by these institutions can provide Indian scholars with valuable exposure and enriching learning experiences. Moreover, Indian students will be able to earn foreign degrees without going abroad, thereby helping retain talent within the country. Local needs and priorities But one must also ask: who are the actual beneficiaries? Will these branch campuses cater exclusively to the elite? Will academically gifted students from economically disadvantaged backgrounds have an opportunity to gain admission? In a country where millions of young people struggle to access higher education — or are unable to pursue it due to financial constraints — this initiative risks neglecting local needs and priorities. With regard to bringing world-class education to India, any foreign university setting up a campus here is primarily driven by monetary interests, and the focus is likely to be on profit rather than academic excellence. This opens the door to the commercialisation of education, reducing it to a commodity rather than upholding it as a service. Foreign university branch campuses in India risk becoming symbols of elitism rather than instruments of equality or social justice. A truly vibrant campus is one that embraces equality, upholds social justice, and celebrates diversity and inclusiveness. On a typical Indian campus, students from diverse socio-economic and cultural backgrounds come together, interact, and learn from one another. This environment helps everyone become sensitive to the needs of one another and empathetic. A foreign campus in India is unlikely to foster or reflect this kind of inclusive environment. Introducing foreign university campuses should lead to reforms in the education sector, not widen inequality. It is misguided to claim that graduates from foreign university campuses in India will help reduce brain drain. On the contrary, a degree from a foreign university can serve as a stepping stone and increase the chances for those who aspire to work abroad. If the purpose of inviting foreign universities to set up branch campuses in India is to bring world-class education, develop global citizens, and transform the country into a 'Viksit Bharat' (Developed India) by 2047, the focus must be on addressing local needs, particularly by enabling economically and socially disadvantaged groups to access higher education and by improving the overall quality of education. That is what will lead to true transformation. Let us not forget: all that glitters is not gold. The writer is an ELT resource person and education columnist. Email: rayanal@

Mint

an hour ago

• Mint

When diversification backfires: Four Indian companies walking a fine line

Diversification is a well-worn corporate strategy. Done right, it can help companies de-risk operations, tap new revenue streams, and create lasting shareholder value. Done poorly, it can distract management, strain capital, and ultimately erode core businesses—a phenomenon legendary investor Peter Lynch once dubbed "diworsification." Several marquee Indian companies are now testing that fine line between smart expansion and costly distraction. Grasim's recent move into paints, UltraTech's foray into cables and wires, and IndiGo's venture into hotels have raised eyebrows. But in each case, there's a strategic logic: Grasim and UltraTech can leverage their existing cement distribution networks, while IndiGo's established travel brand can extend naturally into hospitality. Others, however, have ventured into businesses far afield from their core competencies—often with damaging results. Read this | Company Outsider: The Gensol-BluSmart fiasco shows the dangers of reckless diversification Here are four listed Indian companies that show how overextension can strain even established businesses. Unitech: Diversification derailed the core By the early 2000s, Unitech had cemented its position among India's top real estate developers, with residential complexes, commercial projects, and amusement parks sprawled across more than 14,500 acres. Following India's 2005 liberalization of foreign investment in real estate, Unitech drew substantial foreign interest and saw its stock soar by 3000% in a year. Flush with cash, the company ventured into telecom in 2007. But the global financial crisis hit its real estate business hard, and the telecom bet proved disastrous. The venture saddled Unitech with crippling debt. The 2G spectrum scandal that followed led to cancelled licences, criminal charges against its promoters, and the forced sale of its telecom operations. At its peak, the company owed ₹8,000 crore in debt. The collapse spilled into its core real estate business: stalled projects, mounting client complaints, regulatory interventions, and severe brand erosion. Though Unitech has since pivoted back to real estate, it faces a long road to recovery from the debt burden, reputational damage, and years lost chasing an ill-fated diversification. OK Play India: Stretching to thin OK Play began as a manufacturer of water tanks, but over time expanded into a disparate set of businesses: toys, auto components, delivery boxes, mannequins, and electric three-wheelers. Management has cited plastic as the common thread—but the reality has been less convincing. The company struggled to leverage any synergies between these businesses, failing to transfer brand strength, manufacturing capabilities, or distribution scale across segments. Its core toy business continues to drive most of its revenues, while newer ventures have mostly added losses and distraction. Despite management's stated goal of doubling toy revenues annually and targeting 15-20% growth in other segments, its history of losses casts doubt on such projections. Recent expansions into home décor and air purifiers only raise further concerns. For OK Play, focus on profitable segments rather than new distractions appears critical. Patanjali Foods: Early signs of overreach Investor favourite Patanjali Foods, once an edible oil company, has successfully transformed into a broader FMCG player by acquiring foods and home & personal care businesses from its parent. Today, it ranks as India's third-largest FMCG company by revenue. However, while it has climbed the revenue ranks, profitability remains a weak spot. Revenues have also been vulnerable to volatile edible oil prices. The growing contribution of higher-margin segments has eased some of those concerns, and after several years of underperformance, the stock has been outperforming since June 2023. But recent moves have raised concerns that Patanjali may be drifting into 'diworsification." Its investment in wind power generation has already resulted in intermittent losses. Even if that can be justified as captive green energy for its core operations, its more recent forays into construction and infrastructure with KBC Global, and insurance with Magma General Insurance, mark clear departures from its core strengths. How management navigates these ventures remains to be seen. Balmer Lawrie: Overdiversification hits PSUs too Established in the pre-independence era, Balmer Lawrie is now a central PSU under the Ministry of Petroleum and Natural Gas, classified as a Miniratna-I company. As the company itself puts it, there is scarcely a business it hasn't ventured into. It has ventured into tea, shipping, insurance, banking, and manufacturing over the years. Today, it operates across eight strategic businesses spanning manufacturing and services. Its manufacturing portfolio includes industrial packaging, greases and lubricants, and chemicals, alongside refinery and oil field services. While some of these businesses are adjacent, the company's sprawling portfolio suggests an overextension of its operating focus. Read this | How ITC and BAT's divergent diversification strategies flipped the narrative In its travel vertical, Balmer Lawrie offers services ranging from travel planning, ticketing, forex, and hotel bookings to visa processing and travel insurance. It also runs logistics operations, including cold chain logistics and door-to-door freight forwarding. While logistics contributes a fifth of the company's revenues, its subsidiary, Visakhapatnam Port Logistics Park, has been a drag on profitability. The travel vertical has limited revenue contribution, with a bulk of the business still being driven by industrial packaging, and greases and lubricants. Result? Distractions from multiple fronts have kept profits volatile. When diversification Becomes diworsification Diversification isn't inherently negative. Expanding into upstream or downstream segments can lower costs, while entering adjacent businesses can help de-risk operations and cushion against business-cycle or seasonal fluctuations. Also read | Why some Indian companies are paying dividends despite posting losses The real concern arises when companies venture into industries entirely unrelated to their core strengths. Done well, such moves can mark the early stages of building a diversified conglomerate—as seen with Reliance Industries Ltd or ITC Ltd. But execution is critical, and professionally managed firms are better equipped to navigate the risks. Even then, conglomerates often trade at a discount, with the whole valued less than the sum of their parts. If a company has proven its strength in its core business, investors may be willing to back unrelated diversification—Patanjali Foods being one example. But when companies already struggling at the core venture into unrelated businesses, they risk spreading themselves too thin. Bull markets may temporarily lift such stocks on a wave of optimism, but when sentiment cools and fundamentals reassert themselves, these weaknesses are quickly exposed. For more such analyses, read Profit Pulse. Ananya Roy is the founder of Credibull Capital, a Sebi-registered investment adviser. X: @ananyaroycfa Disclosure: The author does not hold shares of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.