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WEEKLY MARKET REPORT
The ongoing border tensions between India and Pakistan dragged the Indian benchmark indices by more than a percent in the week ended May 9, breaking 3-week gaining streak ignoring other positive global cues, including US-UK trade talk, US-Chine trade negotiation, ECB rate cut, FII buying and Free Trade Agreement (FTA) between UK-India.
For the week, the BSE Sensex index declined 1,047.52 points or 1.3 percent to close at 79,454.47, and Nifty50 shed 338.7 points or 1.4 percent to close at 24,008.
Considering the broader indices, the BSE Large-cap Index declined 1.5 percent, the BSE Mid-cap Index shed 1.4 percent, and the BSE Small-cap Index also shed 1.3 percent.
Among sectors, Nifty Realty index plunged 6.5 percent, Nifty PSU Bank index shed 4.4 percent, Nifty Bank, Pharma, Energy, Oil & Gas down more than 2 percent each. On the other hand, Nifty Auto and Media rose more than 1 percent each.
In this week, Reliance Industries lost the most in terms of market value, followed by ICICI Bank, HDFC Bank, Sun Pharmaceutical Industries. On the other hand, Tata Motors, Larsen & Toubro, Titan Company added the most of their market-cap.
The Foreign Institutional Investors (FIIs) remained net buyers in the fourth consecutive week as they bought equities worth Rs 5,087.42 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 10,450.96 crore.
The Indian rupee ended lower against the US dollar as domestic currency slipped 81 to end at 85.37 per dollar on May 9 against the May 2 closing of 84.56.
ECONOMY
Japanese SMBC Bank acquires 20% stake in India’s Yes Bank
Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) has signed an agreement to take a 20% stake in Indian private lender Yes Bank, a deal that marks the largest cross-border merger and acquisition deal in India’s financial sector. The total value of the deal, which involves SMBC buying shares from eight existing shareholders, comes up to 134.8 billion rupees ($1.58 billion). SMBC’s stake purchase in Yes Bank, which will make it the largest shareholder in the lender, also marks the latest major overseas acquisition by a Japanese financial institution as they look to secure new sources of growth after years of rock-bottom interest rates at home and a shrinking domestic population.
Walmart turns towards India amid high tariffs on Chinese goods
Facing escalating U.S. tariffs on imports from China, Bangladesh, and Vietnam, major U.S. retailers like Walmart are increasingly sourcing garments from India. India’s textile hub, Tiruppur in Tamil Nadu, presents a competitive advantage with relatively lower tariffs of 26% compared to 145% for China and 37% for Bangladesh.
Garment exporters in India say workers have to be trained, and many leave within months to work at smaller, unorganised units that allow longer hours and pay more. The larger manufacturers can’t match them due to foreign clients’ requirements on cost and workers’ conditions, according to Reuters interviews with 10 manufacturers and apparel exporter trade groups representing 9,000 businesses.
STOCK IN NEWS
Bharat Forge
Bharat Forge shares jumped 5.32 percent this week, supported by the upbeat Q4FY25 performance, with India-Pakistan tensions supporting defence stocks. Chairman and Managing Director BN Kalyani told CNBC-TV18 that the government has summoned key defence equipment manufacturers to Delhi for consultations.
YES Bank
Yes Bank saw a strong rally during the week, with its stock climbing by nearly 10% to ₹20.00. The surge came after the bank announced a remarkable 164.5% year-on-year rise in net profit to ₹612 crore for Q4 FY25, alongside a 10% growth in Net Interest Income (NII). The results indicated a strengthening of the bank’s balance sheet and operational efficiency, boosting investor confidence.
Eternal
Shares of Eternal, parent company of Zomato, dropped nearly 3.46 percent to extend losses after the company reported a 78 percent year-on-year decline in net profit to Rs 39 crore for the quarter ended in March. The company, which operates food delivery platform Zomato and quick commerce service Blinkit, faced investor pressure following the weak earnings.
ICICI Bank
The bank’s shares slipped by 3.16% during the week, closing at ₹1,388.70. While there was no major negative company-specific news, the stock was impacted by profit-booking and a broader rotation out of banking stocks amidst global macroeconomic uncertainty.
PowerGrid Corporation of India
Power Grid Corporation’s stock declined by 2.70% to ₹299.55. The weakness was largely due to sectoral pressure on utilities and some profit-taking by investors. There were no major corporate developments during the week, but investor focus shifted away from defensives.
Source – Moneycontrol, Reuters
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