Stockgram

India's equity markets have had a forgettable trading session on Thursday, May 22, exactly a week after a strong rally that was seen during the May 15 trading session, which had taken the Nifty past the 25,000 mark.





As the close of trade on Thursday, the Sensex fell 650 points, while the Nifty fell 200 points, but managed to hold on to the 24,500 level on the downside.





A combination of multiple factors are behind the fall seen on Dalal Street in today's trading session. Here are a few of them:


Weak Global Cues


Dalal Street walked into Thursday's trading session after a very weak handover from the US markets. Wall Street indices saw their sharpest sell-off in over a month on Wednesday night as bond market tensions roiled sentiment across the equity markets.





A 20-year bond auction drew subdued demand, which resulted in a spike in bond yields, particularly the longer tenor 30-year note, which surged to the highest level since October 2023. The 30-year bond yield is now just 10 basis points away from reaching levels last seen in 2007.





The yield on the 10-year bond also hit levels of 4.6%, the same level at which US President Donald Trump was forced to announce a 90-day pause on his reciprocal tariff plans on April 9.





The Dow Jones fell 800 points, while the S&P 500 and Nasdaq fell 1.5% each. Unlike other previous sessions where lower levels were met with buying interest, the indices on Wednesday ended at the lowest point of the day.


Weekly Expiry


Today was also the weekly expiry of the Nifty, which generally results in extreme moves on either side for the index. Last Thursday, the Nifty 50 had seen a sharp upmove and even went on to cross the 25,000 mark from where it has come off.


Experts Say


Gautam Shah of Goldilocks Premium Research said that there has been a lot of global and local stress and yet the markets have come flying colours. He believes that the Nifty can first head towards 25,600 levels before moving higher towards the all-time high levels.





Shah also shared levels for the US market, where he expects the S&P 500 to retest its previous record high of 6,144, getting to levels of 6,150 going forward.





Morgan Stanley on Wednesday had revised its target higher on the Sensex to 89,000 from 82,000 earlier. In its bull case scenario, Morgan Stanley highlighted that there is a 30% probability of the Sensex hitting levels of 1,00,000 by June 2026. More on that here.





The losses seen so far during the day have led to an erosion of ₹3.5 lakh crore in investor wealth.