Indian Markets Open Lower on May 16 Amid Global Cues and Profit Booking

Markets Open in Red on May 16 Following Global Cues and Investor Profit-Taking

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: May 16, 2025

Summary: On May 16, 2025, Indian stock markets dropped again amid the shifts in the global market and investors taking profits.

The gains from the previous day were reversed as the Indian stock market started lower on May 16, 2025. At 9:16 AM, the BSE Sensex slid 242 points (0.29%) to 82,288.75, while the Nifty50 index declined 66 points (0.26%) to 24,996.00.

On May 16, 2025, the Indian stock market opened lower, undoing the gains from the day before. The Nifty50 index dropped to 24,996.00, down 66 points (0.26%), and the BSE Sensex fell by 242 points (0.29%) to 82,288.75 at 9:16 AM.

The loss follows a strong comeback on Thursday, as the Nifty50 soared by 550 points from its lows, led by aggressive buying by Foreign Institutional Investors (FIIs), who invested ₹5,393 crore in Indian stocks.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the unexpected FII purchases contradicted the prevailing consensus that FIIs would slow down investments in India in favor of cheaper Chinese stocks.

Ajit Mishra, Senior Vice President at Religare Broking, stated that a significant breakout above the 25,200 mark might propel the Nifty50 to the 25,400-plus zone. He recommended a "buy on dips" strategy, stressing selective stock selection owing to overbought conditions in specific categories.

Global factors have influenced market sentiment. US shares closed on a mixed note, with Cisco Systems rising and UnitedHealth falling. Asian markets followed Wall Street's lead, as traders anticipated two Federal Reserve rate cuts this year, resulting in Treasuries' gains.

Oil prices rose a bit on Friday, recovering from a big drop the day before. They still show a weekly gain of 1% due to better US-China trade relations easing worries.

Investors need to watch global events and be careful in today's market.