Indian stock markets experienced a subdued opening on Friday, May 16, 2025, with the Sensex initially dropping around 200 points and the Nifty 50 hovering just above the 25,000 mark. This came after a strong rally in the previous session, where both indices had seen significant gains.

Market Performance:

• The BSE Sensex index slipped 224 points, or 0.27 percent, to trade at 82,307. Later in the morning session, the Sensex was down 250 points.
• The NSE Nifty 50 was down 43.25 points, or 0.17 percent, trading at 25,018.85. The Nifty 50 index had closed above the 25,000 mark in the previous session.
• By late morning, the Sensex was trading at 82,391.78, down 138.96 points, while the Nifty was slightly up at 25,064.65, a gain of 2.55 points.

Factors Influencing the Market:

• Profit Booking: The initial dip was attributed to investors booking profits after Thursday's substantial rally.
• US-India Trade Negotiations: Continued trade negotiations between the United States and India were expected to provide support to the market, potentially sustaining the recent rally fueled by easing geopolitical tensions. US President Trump had indicated that India was considering dropping tariffs on US goods.
• Global Cues: Mixed global cues also played a role in the market's direction. Asian stocks had generally followed Wall Street higher.

Sectoral Performance:

• Selling pressure was seen in sectors like IT and Pharma. The Nifty IT and Nifty Pharma indices were down by 0.2%.
• Sectors like Auto, Financial Services, Metal, PSU Bank, Realty, and Consumer Durables opened with gains.
• The Nifty MidCap and Nifty SmallCap indices were up by 0.25 percent and 0.42 percent, respectively.

Top Stocks in Focus:

• Bharti Airtel: Shares of Bharti Airtel experienced a decline, dropping over 2% in early trade. The stock was under pressure due to reports of a block deal by Singtel, which planned to sell a 0.8% stake in the telecom major through its arm, Pastel. The expected floor price for the deal was ₹1,800 per share, a discount from the previous day's closing price. BNP Paribas maintained an outperform rating for Bharti Airtel, citing strong financial performance and dividend increases.
• SBI: State Bank of India (SBI) was also among the top losers, with shares slipping.
• PB Fintech: Shares of PB Fintech, the parent company of Policybazaar, saw a rise of 2% after reporting a strong Q4FY25 performance with a 185% year-on-year surge in consolidated net profit.
• Other stocks in focus included JSW Energy, Abbott India, Alkem Laboratories, and Godrej Industries.

Analyst Views:

• Shrikant Chouhan from Kotak Securities suggested that the market outlook remained positive, recommending a strategy of buying on intraday corrections and selling on rallies.
• VLA Ambala, Co-Founder of Stock Market Today, anticipated support for Nifty around 25,020 and resistance between 25,200 and 25,280.

Other Key Updates:

• Several companies, including Hyundai Motor India, Bharat Heavy Electricals, Emami, and Delhivery, were scheduled to announce their Q4 results on May 16, 2025.
• The Accretion Pharmaceuticals IPO was in its final day of subscription.

Overall, the Indian stock market started the day on a cautious note, influenced by profit-booking and mixed global signals. While some sectors faced selling pressure, others showed resilience. Investors were closely monitoring trade negotiations between India and the US, as well as Q4 earnings announcements from major companies.