Indian equity markets experienced sharp declines on May 22, 2025, with the BSE Sensex falling as much as 1,000 points to 80,630 and the NSE Nifty dropping below 24,500. The sell-off was attributed to a combination of global risk-off sentiment, rising US Treasury yields, concerns over the US fiscal deficit, foreign and domestic institutional selling, profit booking after a recent rally, and weakness in large-cap stocks such as HDFC Bank, Reliance Industries, and ICICI Bank. Market volatility increased, with the India VIX rising and all sectoral indices in negative territory, particularly IT, FMCG, and banking. Renewed COVID-19 concerns in Asia and technical indicators pointing to further downside contributed to the negative sentiment. Analysts highlighted that a Moody's downgrade of the US credit outlook and a weak US Treasury auction exacerbated the risk aversion. Amid the broader market decline, several major Indian companies reported quarterly earnings. IndusInd Bank posted its first net loss in 20 years, reporting its largest-ever quarterly loss of Rs 2,329 crore in Q4 FY25, reversing a net profit of Rs 2,349 crore a year earlier. Net interest income fell 43% year-on-year. The loss was driven by accounting discrepancies in derivatives and microfinance segments, with the bank flagging suspected employee fraud involving Rs 2,600 crore and Rs 172.58 crore of income incorrectly recorded over three quarters. The board indicated that all issues have been identified and addressed. The CEO and deputy CEO stepped down last month. The bank's share price swung from a 6% loss to a nearly 10% intraday gain, closing 2% higher. In contrast, InterGlobe Aviation (IndiGo) reported its highest-ever fourth quarter net profit of Rs 3,068 crore, up 62% year-on-year, driven by strong air travel demand. The airline declared a dividend of Rs 10 per share, its first in six years. Capacity increased 21% to 42.1 billion ASKs, passenger numbers rose 19.6% to 31.9 million, and total income reached Rs 23,097.5 crore. Passenger ticket revenue was Rs 195,673 million, and ancillary revenue was Rs 21,525 million. IndiGo's total cash stood at Rs 481,705 million, with a fleet of over 400 planes and more than 2,200 daily flights. Other notable earnings included ITC, which reported a multifold jump in net profit to Rs 19,727 crore for Q4 FY25, largely due to an exceptional gain, and declared a dividend of Rs 7.85 per share. Standalone net profit was Rs 19,561.6 crore, standalone revenue was Rs 17,248 crore, standalone EBITDA was Rs 5,986.3 crore, and margin stood at 34.7%. Sun Pharmaceutical posted a 19% decline in net profit to Rs 2,154 crore, with revenue at Rs 12,958.8 crore and EBITDA at Rs 3,715.9 crore, and announced a final dividend of Rs 5.50 per share. Honasa Consumer (Mamaearth parent) saw net profit fall 18% to Rs 25 crore, with revenue up 13% to Rs 533 crore and EBITDA margin at 5.1%, as the company continued to recover from a prior offline distribution restructuring. Gujarat State Petronet's net profit declined 54% to Rs 220.3 crore, margin shrank to 13.4%, and a dividend of Rs 5 per share was declared. Power Finance Corporation reported a 10.6% increase in consolidated net profit and a 41% rise in net interest income. Overall, the Indian stock market faced heightened volatility and broad-based selling, with global macroeconomic developments and detailed company earnings shaping the session.