After starting the day on a negative note, pressured by declines in banking and IT stocks, the benchmarks dragged further as the session progressed and ended the day on a weak note.

The benchmark equity indices ended on a weaker note on Thursday.

At the closing bell, the BSE Sensex stood lower by 587 points (down 0.7%).

Meanwhile, the NSE Nifty closed lower by 204 points (down 0.8%).

Bajaj Auto, Bharti Airtel, and JSW Steel were the top gainers today.

ONGC, M&M, and Hindalco dra on the other hand, were among the top losers today.

The GIFT Nifty ended at 22,836, down by 295 points.

The BSE Mid Cap ended 0.3% lower, and the BSE Small Cap index ended 0.2% higher.

Barring the telecom sector, all other sectoral indices are trading on a negative note, with stocks in the power sector, the oil & gas sector, and the FMCG sector witnessing selling pressure.

The rupee is trading at 86 against the US$.

Gold prices for the latest contract on MCX are trading 0.2% lower at Rs 95,795 per 10 grams.

Meanwhile, silver prices are trading 0.1% higher at Rs 98,294 per 1 kg.

Here are four reasons why Indian markets are falling today:

#1 Increasing US Debt

US President Donald Trump's tax and spending bill has raised fears that it will increase the US debt and further slow US economic growth.

Trump's tax bill is expected to be voted on this week in Congress, and investors are worried it could add about $3.8 trillion to the $36 trillion US debt pile, according to media reports.

#2 Escalating Tensions in Middle East

Reports of rising tensions between Iran and Israel also seem to have hit the risk appetite of investors.

CNN reported that the US has gathered new intelligence, suggesting that Israel is preparing for a potential military strike against Iranian nuclear facilities.

#3 Stretched Valuations

The recent rally in Indian markets has stretched the valuations of large-caps, while mid- and small-caps are trading at lofty valuations. This has raised concerns that the market may see some deep correction in the near term.

#4 Mixed Q4 Earnings

Mixed Q4 earnings have failed to give a boost to market sentiment. Kotak Securities pointed out that Q4FY25 earnings season has been broadly muted, with Nifty-50 net profits growing 7.5 per cent year-on-year.
 

Emcure Pharma Q4 Results

In news from the pharma sector, shares of Emcure Pharmaceuticals Ltd. gained as much as 8% on Thursday, 22 May after the company's fourth quarter results.

The company's net profit for the quarter surged 64% year-on-year to Rs 1.9 bn, compared to a profit of Rs 1.2 bn during the same quarter last year.

Revenue for the period also rose on a year-on-year basis to Rs 21.2 bn from Rs 17.7 bn, implying a 20% growth.

The board recommended a final dividend of Rs 3 per equity share of face value of Rs 10 each (at the rate of 30%) for the financial year ending 31 March 2025.

This will be subject to approval of the members of the company at the ensuing Annual General Meeting of the company. The dividend, once approved, will be paid within the prescribed timeline under the Companies Act, 2013.

Why BSE Share Price is Falling?

Moving on, shares of the Bombay Stock Exchange (BSE) fell 5% to Rs 6,933 apiece on May 22, following reports that India's market regulator, SEBI, may soon approve Tuesday as the expiry day for the National Stock Exchange (NSE).

According to media sources, the Securities and Exchange Board of India (SEBI) is expected to issue a circular finalising expiry days for index contracts across stock exchanges. Reports indicate that NSE has proposed Tuesday as its new expiry day-a move recently discussed during a meeting of SEBI's Secondary Market Advisory Committee (SMAC).

Currently, BSE's futures and options contracts expire on Tuesdays, while NSE contracts expire on Thursdays. In March 2025, SEBI released a consultation paper recommending Tuesdays and Thursdays as standard expiry days to avoid overlaps and improve clarity for market participants.

Separately, NSE has already modified the expiry schedule for several of its derivative contracts.

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