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Indian Stock Market Opens Flat Amid Global Uncertainty and RBI’s Liquidity Measures – April 22, 2025

Stock Market

Stock Market

Market Opening Overview

On Tuesday, April 22, 2025, Indian stock markets opened on a flat note. The Sensex rose by 481.73 points (0.61%) to 79,890.23, and the Nifty increased by 80 points (0.33%) to 24,205.55 in the pre-opening session .​

Factors Influencing the Market

Global Economic Concerns

Global markets faced volatility due to U.S. President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell, raising concerns about the Fed’s independence. This led to a sell-off on Wall Street, with the Dow Jones falling by 971.82 points (2.48%) .​

RBI’s Liquidity Measures

Domestically, the Reserve Bank of India (RBI) introduced liquidity-enhancing measures by allowing banks to maintain a lower buffer rate of 2.5% on digitally linked deposits. This move is expected to inject ₹2.5-3 trillion into the system, potentially boosting credit growth by 1.4%-1.6% .​

Sectoral Highlights

Banking Sector

Banking stocks continued their upward trend, supported by strong earnings from HDFC Bank and ICICI Bank, and consistent foreign portfolio investor (FPI) inflows .​

Metal Industry

Metal stocks were in focus after India imposed a 12% safeguard duty on certain steel imports to curb a surge in cheap shipments, primarily from China .

Energy Sector

Coal India announced plans to build a ₹165 billion coal-fired plant in Jharkhand, and Tata Power partnered with Tata Motors on a 131-megawatt wind-solar hybrid project .​

Investor Sentiment

Foreign portfolio investors (FPIs) purchased ₹19.7 billion worth of Indian shares on Monday, aided by a weakening U.S. dollar that makes Indian assets more attractive .​

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