Overview

• Indian equity indices opened lower on May 22, with Sensex falling over 600 points and Nifty dropping below 24,650, driven by global fiscal worries.
• US Treasury yields spiked after a weak 20-year bond auction, fueling concerns about the sustainability of US fiscal policies and impacting emerging markets like India.
• Foreign Portfolio Investors (FPIs) resumed net selling earlier in the week, while Domestic Institutional Investors (DIIs) provided some counterbalance through steady buying.
• Moody’s affirmed India’s economic resilience, citing strong domestic growth drivers and low export dependence as key buffers against global volatility.
• Geopolitical tensions, particularly concerning potential Israel-Iran conflicts, and fluctuating oil prices continue to add pressure to global market sentiment.