The Indian stock market witnessed a positive opening today, May 20, 2025, with the Sensex gaining 150 points and the Nifty hovering near the 25,000 mark. This upward movement was primarily driven by gains in IT and banking stocks, with Infosys and ICICI Bank leading the charge.
Infosys, a major player in the IT sector, saw its share price impacted by recent news. The stock last traded at Rs 1,559.80, a decrease of -1.90% from its previous close of Rs 1,589.90. Despite this dip, Infosys has shown strong financial performance in the recent past. In the third quarter, the company reported a quarter-on-quarter revenue growth of 1.7% and secured large deals totaling $2.5 billion. The company's strategies, including focusing on emerging technologies, establishing collaborations, investing in research and development, and maintaining a customer-centric approach, have positively affected its stock over time. The company announced a dividend of Rs 22 per share on April 17, 2025, with a record date of May 30, 2025. However, concerns remain regarding margin and revenue guidance.
ICICI Bank, a prominent name in the banking sector, also played a significant role in today's market activity. ICICI Bank opened at 1,446.50, while its previous close was at 1,454.00. During today's trading session, ICICI Bank reached a high of 1,459.70 and a low of 1,443.80. The stock is moving sideways in intraday trend. The bank's share price has been influenced by factors such as falling gross NPA and net NPA over the past four years, as well as an uptrend in net interest margin. The bank's gross NPA% and Net NPA% have fallen continuously over the past 4-years to 1.67% and 0.39%, respectively. The company is able to expand its net interest margin on a continuous basis over the last 3 years with margins of 3.68% in last year.
Overall, the market sentiment appears to be cautiously optimistic. Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, noted a preference for quality in the market, with defensives like pharmaceuticals and FMCG gaining traction. However, there is weakness in the mid and small cap segments.
While the Sensex and Nifty started the day on a positive note, it's important to note that the market can be volatile. Earlier in the month, on May 15, 2025, the NSE Nifty closed above 25,000 for the first time since October 2024, driven by anticipated India-US trade agreements. However, the market also experienced a downturn on Monday, May 19, with the Sensex falling and the Nifty slipping below 25,000, weighed down by losses in IT stocks.
Investors are advised to keep a close watch on market trends, global cues, and key economic data releases to make informed decisions.
