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WEEKLY MARKET REPORT
The Indian stock markets experienced a volatile week, with the BSE Sensex and Nifty 50 indices showing mixed performances.
For the week, the BSE Sensex index declined 980.53 points or 1.19 percent to close at 81,451.01, and Nifty50 shed 288.65 points or 1.15 percent to close at 24,750.70.
Sectoral indices exhibited mixed performance for the week. Nifty PSU Bank led the gains at 4.08%, followed by Nifty Capital Markets (3.35%), Nifty India Defense (2.73%), and Nifty Realty ( 1.33%). Nifty Pharma, Bank, and Nifty Financial Services registered a weekly positive performance for the period at 0.04%, 0.63%, and 0.05%, respectively.
On the other end of the spectrum, Nifty Auto (-0.81%), Nifty IT (-1.46%), Nifty FMCG (-2.16%), Nifty Metal (-0.61%) , and Nifty Consumer Durables (-0.77%) suffered losses.
Taking into account, the Broader market indices, the BSE Large-cap Index went down 1.16 percent, the BSE Mid-cap Index also went down a mere 0.05 percent while the BSE Small-cap index gained 1.08 percent.
In the week, Eternal recorded the highest gain in market capitalisation, followed by SBI, HDFC Bank, and Larsen, driven by strong order flows and sector optimism. Meanwhile, Bajaj Auto, Hindalco, Shriram Finance, HCL Tech, and Tech Mahindra saw the largest declines in market value
Foreign Institutional Investors (FIIs) remained largely inactive, while elevated market valuations continued to limit the scope for fresh buying.
The rupee remained relatively stable, supported by RBI interventions in the forex market. The Indian rupee closed at Rs 85.56 per US$ on 16 May compared to Rs 85.97 on May 23.
ECONOMY
India’s Q4 GDP Surges, But RBI Stays Cautious on Rate Cuts
In FY25, India’s economy grew significantly during the January–March quarter, with GDP growth exceeding forecasts at 7.4%. Significant government capital investment and sturdy manufacturing and construction industry results were the main drivers of this upswing.
The Reserve Bank of India (RBI) is expected to continue its monetary easing policy despite this remarkable quarterly growth. The central bank is expected to continue concentrating on promoting economic expansion, specifically because the annual GDP growth rate decreased from 9.2% in FY24 to 6.5% in FY25.
Despite the positive Q4 GDP numbers, the RBI is anticipated to maintain its liberal monetary policy to maintain economic growth in the face of international uncertainty.
US doubles Steel and Aluminum tariffs to 50%
U.S. President Donald Trump raised pressure on international steel manufacturers and extended his trade war on Friday when he announced his intention to raise import duties on steel and aluminum from 25% to 50%. This will be effective from Wednesday, June 4, 2025.
The main objective of this action is to preserve American employment and support the American steel industry. A new collaboration agreement between U.S. Steel and Nippon Steel, located in Japan, was released at the same time as the announcement. The effects of this tariff rise on previous trade deals, including the one with the UK that lowered steel and aluminum levies to zero, are yet unknown, though.
STOCKS IN NEWS
Onix Solar Energy
The shares have increased by over 8 percent in the past week. This is primarily due to its announcement of a ₹25,000 crore investment plan to develop 7 GW of renewable energy capacity and 5 GW of solar module and cell production within the next three years. Additionally, the company’s plans to raise ₹1,000 crore through an IPO, targeting a ₹10,000 crore valuation, have further boosted investor confidence.
Ola Electric
India’s electric vehicle manufacturer Ola Electric’s shares have seen a massive decline over the past week. The company reported a net loss of ₹870 crore, more than double that of the previous year, and a 62% drop in revenue to ₹611 crore. Vehicle deliveries dropped to 51,375 units in Q4 FY25 from 1.15 lakh units in Q4 FY24.
Apollo Micro Systems
The shares have gained nearly 35 percent in the past week and over 60 percent in the past month. The reason for such massive gains is due to many reasons, including the company has signing of various MoUs and completing an acquisition. Commercial orders for its software-defined homing system for heavyweight torpedoes are also expected soon. As several defence programs enter the production phase, management sees a strong pickup in order execution, driving revenue growth, margin expansion, and better working capital efficiencies.
Brainbees Solutions
The parent company of FirstCry has decreased by over 7 percent in the week. This is primarily due to its Q4 FY25 financial results, which revealed a net loss of ₹111 crore—more than double the loss from the same period last year—despite a 16% increase in revenue. This widening loss has raised concerns among investors about the company’s profitability.
AN OUTLOOK
For the upcoming week, market players may keep an eye on changes in foreign trade dynamics, institutional investment activity, and industry-specific trends, especially in FMCG and IT. There are also planned policy changes and economic data releases, which the market may keenly monitor.
Source – Moneycontrol, Reuters
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