India's key stock indices advanced on Friday, mirroring gains across broader Asian markets, buoyed by a decline in U.S. Treasury yields and strength in information technology and consumer goods sectors.
Gaurav Garg, Lemonn Markets Desk
India's key stock indices advanced on Friday, mirroring gains across broader Asian markets, buoyed by a decline in U.S. Treasury yields and strength in information technology and consumer goods sectors. The Nifty 50 climbed 0.99% to 24,853.15, while the BSE Sensex rose 0.95% to 81,721. Broader indices also reversed early declines, with both small-cap and mid-cap indices gaining around 0.7%.
Gaurav Garg,
Lemonn Markets Desk
Mumbai, May 23, 2025: Consumer stocks led the sectoral rally, as the Nifty FMCG index jumped 1.8%, driven by a 2% rise in ITC following strong March-quarter results. The Nifty IT index also rebounded, gaining 1.8% after a 1.3% drop in the previous session.
Despite the positive momentum, foreign portfolio investors sold ₹50.45 billion ($586.8 million) worth of Indian equities on Thursday, amid lingering concerns over U.S. Treasury yields and the implications of a proposed U.S. tax-cut bill on federal debt. However, a slight retreat in U.S. yields after the bill narrowly cleared the House helped restore some investor confidence and eased pressure on emerging markets.
Elsewhere in Asia, equity markets were broadly higher, with the MSCI Asia ex-Japan index rising 0.4%, recovering from a 0.9% decline the previous day. Nevertheless, both the Nifty and Sensex remain about 1% lower for the week.
Given the continued uncertainty surrounding the U.S. economy, foreign investment flows, and trade negotiations, Indian markets may see a phase of consolidation in the near term. Although March-quarter earnings have shown signs of recovery, the gains remain modest, potentially capping further market upside.
In contrast to the overall uptrend, the Nifty Pharma index slipped 0.5%, weighed down by a 3.3% fall in Sun Pharma after brokerages cut earnings forecasts due to weak revenue guidance for FY26. Meanwhile, Honasa Consumer surged 12% after several analysts raised their FY26 revenue estimates, citing a positive growth outlook and strong performance across new brand segments.
