On May 21, 2025, Indian equity markets witnessed a notable recovery, with the BSE Sensex rising by 410.19 points (0.51%) to close at 81,596.63, and the NSE Nifty50 advancing 129.55 points (0.52%) to settle at 24,813.45. This rebound followed a three-day losing streak and was driven by renewed investor interest in banking, realty, and pharmaceutical sectors. (The Times of India)

Market Dynamics

The day's gains were primarily attributed to buying in heavyweight stocks such as HDFC Bank and ICICI Bank, coupled with positive cues from Asian markets. Despite recent volatility, the market capitalization of BSE-listed companies increased by ₹2.89 lakh crore, reaching ₹441.09 lakh crore. (The Times of India, Business Today)

Foreign Institutional Investors' Activity

Contrasting the domestic optimism, foreign institutional investors (FIIs) withdrew ₹10,016 crore from Indian equities on May 20, marking the largest single-day outflow since February 28, 2025. This significant withdrawal is attributed to concerns over global economic uncertainties and profit-booking after recent market rallies. (Livemint)

Top Gainers

Among the Sensex constituents, Bajaj Finserv led the gains with a 2.02% rise, followed by Tata Steel (1.86%) and Sun Pharmaceutical Industries (1.83%). Other notable gainers included Tech Mahindra and Bajaj Finance. (Rediff, Zee Business)

Market Outlook

While the market's rebound is encouraging, analysts advise caution due to ongoing global uncertainties and potential further FII outflows. Investors are recommended to monitor developments closely and consider a balanced investment approach. (@EconomicTimes)