Nifty gains over 200 points: What’s cheering bulls?

Indian equities in Friday’s session (May 23, 2025) traded sharply higher supported by gains in bluechip stocks. At the last count at around 2:38 pm, Nifty50 index traded with gains of 0.99 per cent or 244.65 points at 24,854.35.

Here are the likely reasons for markets resilience today:

Bond yields softened

Bond yields in the US softened to some extent, offering relief to markets. Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said, “Particularly the sharp spike in US bond yields with the 30-year yield touching 5.14 % and the 10-year yield at 4.52% reflect concerns surrounding the US debt levels and its fall out on global financial markets. It remains to be seen how this pans out.”

Domestic driven segments lend support

The silver lining from the market perspective is India’s strong macros particularly the resilient growth and declining inflation and interest rates. 

Even when the market turns weak domestic demand driven segments like financials, telecom, aviation etc are resilient and this is reflected in the strength in the stock prices of the big boys in these segments like ICICI Bank, Bharti Airtel and Interglobe Aviation. This message from the market is important. added Vijaykumar.

IT, Private Bank and FMCG gauges lead gain

As of the last count, the IT gauge has erased some of its early losses and was up 1 per cent. While FMCG index outrun all the others.

Technicals 

Anand James, Chief Market Strategist, Geojit Investments Limited on the Nifty outlook said, “Break below the 10day SMA reopened the possibilities of a downside plunge again. But as pointed out yesterday, momentum being low, the downsides eased off on test of the 20 day SMA, and yet another bounce back attempt is likely. However, thanks to the multiple consolidation attempts through this week, the upside attempts will face several challeges, first being 24728. It would require a direct rise above 24810-60 to signal strength. Else, expect continuation of slippages, with a break below 24580 opening doors for 24200-24060.”