Indian stock markets opened sharply lower on Thursday, May 22, as investors turned risk-averse following a surge in global bond yields. This global cue led to heavy selling across equity markets, dragging down key indices.
The Nifty 50 slipped below the 24,600 mark, while the Sensex plunged over 700 points, signaling widespread caution across Dalal Street. The sharp decline came on a weekly expiry session, typically known for heightened volatility.
By 10:26 AM, the Sensex was down by 700.49 points, or 0.86%, trading at 80,896.14, and the Nifty 50 dropped 218.35 points, or 0.88%, to stand at 24,595.10.
Despite the weakness, market breadth remained mixed, with 1,590 stocks advancing, 1,477 declining, and 140 remaining unchanged, reflecting a balanced participation in individual counters despite index-level pressure.
Volatility Spikes Amid Global Concerns
One of the key highlights of the session was the sharp rise in market volatility. The India VIX index, which measures market fear and volatility, spiked over 3% to reach 18.04, indicating rising nervousness among investors.
A spike in India VIX typically signals caution among traders, and today’s move reaffirmed the fragile sentiment amid global uncertainty.
Sectoral Performance: Bears Take Charge
Almost all sectoral indices traded in the red, except for the Nifty Metal and Nifty Media indices, which managed to hold ground. On the downside:
Nifty IT, Nifty Auto, and Nifty Consumer Durables were among the worst performers, falling up to 1.2%.
Broader markets, however, showed relative resilience. The Nifty Midcap index fell by 0.4%, and the Smallcap index slipped by 0.2%, faring slightly better than the frontline benchmarks.
What’s Driving the Decline?
The decline in Indian equities is being driven by global risk-off sentiment, primarily due to the sharp rise in bond yields overseas. Rising yields make equities less attractive, especially in emerging markets, as investors shift funds toward safer assets.
This global backdrop, combined with weekly expiry-related volatility, has added to the selling pressure in Indian markets today.
