Profit booking continues in Largecaps; Midcaps and PSU Banks rally

2 Jun 2025 , 11:50 AM

In another week that was dominated by profit booking in large caps, NIFTY 50 fell 0.4%. On the other hand, Midcap and Smallcap indices did well. NIFTY MIDCAP SELECT index rallied ~1%. PSU banks were a notable exception as they rallied on rate cut expectations and strong earnings. There was selective buying as earnings dominated the newsflow. Select Power related stocks witnessed significant rallies on strong earnings.

 

NIFTY 50

＄NIFTY 50 – Bearish Breadth as NIFTY falls for the 2nd consecutive week

date	open	high	low	close
2025-05-26	24919.3	25079.2	24900.5	25001.2
2025-05-27	24956.7	25062.9	24704.1	24826.2
2025-05-28	24832.5	24864.2	24737.1	24752.4
2025-05-29	24825.1	24892.6	24677.3	24833.6
2025-05-30	24812.6	24863.9	24717.4	24750.7

Weekly Performance: -0.4%

NIFTY extended its losses and corrected 0.4% last week. This was the 2nd consecutive week of losses for the NIFTY and has given up some of its recent gains. Market sentiment was bearish as there were 35 declines to 15 advances. Stock specific moves dominated the index. Top gainers were were Trent (3.83%), IndusInd Bank: (2.97%), State Bank of India (2.76%), Adani Ports (2.68%) and L&T (2.09%). On the other hand, UltraTech Cement, Grasim, ITC, Shriram Finance and NTPC were the major losers that fell 4.56%, 4.27%, 4.18%, 3.11% and 3.11%, respectively.

 

NIFTY MIDCAP SELECT

＄NIFTY MIDCAP SELECT – Midcaps Shine

date	open	high	low	close
2025-05-26	12639.1	12692.8	12627.0	12654.0
2025-05-27	12658.5	12673.0	12560.8	12618.3
2025-05-28	12660.0	12713.7	12576.4	12595.3
2025-05-29	12659.7	12733.5	12598.8	12706.0
2025-05-30	12725.5	12772.8	12664.5	12712.2

Weekly Performance: 1.0%

Midcap and Smallcap indices performed well. The NIFTY MIDCAP SELECT index was up 0.95% last week and significantly outperformed NIFTY. Stocks such as Cummins India (up 11.14%), BSE (up 9.23%), Godrej Properties (up 2.81%), Coforge (up 2.75%) and Idea (up 2.37%) were among the top gainers for the week. On the other hand, the top losers were Max Healthcare at 4.41%, Aurobindo Pharma (4.12 per cent), Dixon (2.18%), Ashok Leyland (1.49%) and SRF (1.35%). Advances outnumbered declines with 14 stocks advancing and 11 declining.

 

NIFTY IT

＄NIFTY IT – Stocks stabilise in a subdued week

date	open	high	low	close
2025-05-26	37491.1	37819.6	37442.9	37785.9
2025-05-27	37777.9	37798.7	37323.3	37501.4
2025-05-28	37751.4	37777.5	37440.7	37465.8
2025-05-29	37762.1	38121.4	37585.1	37754.1
2025-05-30	37646.4	37665.4	37241.2	37321.8

Weekly Performance: -0.2%

In a subdued week for the markets, the NIFTY IT Index fell 0.22% in the week ended May 30 2025. There was profit booking in the largecaps as some of the sector rotation trades faded. That said, there was selective buying in some of the midcaps. Coforge led the gainers and was up 2.75% for the week, followed by Oracle Financial Services (1.15%), Wipro (0.93%), Mphasis (0.68%), and LTI (0.46%). On the other hand, TCS fell the most at 1.46%, followed by HCL Technologies, Persistent Systems, Tech Mahindra and Infosys. Market breadh was even as advances matched declines at 5:5.

 

NIFTY AUTO

＄NIFTY AUTO – Extends losses and underperforms again

date	open	high	low	close
2025-05-26	23574.4	23839.8	23551.2	23763.2
2025-05-27	23785.5	23795.2	23477.4	23596.9
2025-05-28	23639.3	23639.3	23411.9	23437.1
2025-05-29	23529.1	23607.9	23417.2	23555.8
2025-05-30	23547.6	23590.2	23291.1	23325.6

Weekly Performance: -0.8%

Last week, the NIFTY AUTO Index was down 0.81%, and underperformed the NIFTY 50 (-0.41%). Motherson, Exide Industries, Tube Investments of India, Tata Motors and Hero MotoCorp were the top gainers in the index, which returned 0.01% to 3.3%. On the other hand, Balkrishna Industries, MRF, Bosch, Bajaj Auto and Ashok Leyland were the top losers, falling between 1.49% and 7.07%. Market breadth was weak as the index had 6 advances and 9 declines.

 

NIFTY BANK

＄NIFTY BANK – PSU Banks stage a sharp rally

date	open	high	low	close
2025-05-26	55534.9	55875.8	55307.5	55572.0
2025-05-27	55458.9	55831.4	55037.9	55352.8
2025-05-28	55328.6	55521.8	55235.6	55417.0
2025-05-29	55571.4	55782.8	55096.4	55546.1
2025-05-30	55615.6	55813.3	55356.6	55749.7

Weekly Performance: 0.6%

Last week, the NIFTY BANK Index was among the top performers with a return of 0.63% against a fall of 0.41% by the NIFTY 50. Many PSU banks witnessed a sharp rally. Positive sentiment related to RBI rate cuts and strong earnings contributed to their performance. Key gainers were Canara Bank which gained 7.04%, followed by Punjab National Bank which added 6.13%, State Bank of India which added 3.18%, and Bank of Baroda which added 2.68%. Conversely, the top losers were Axis Bank, Kotak Mahindra Bank, Federal Bank, AU Small Finance Bank and ICICI Bank with losses of 0.28%, 0.43%, 0.88%, 1.34% and 1.48%, respectively. IndusInd Bank extended its gains and was up 5.83%.

 

NIFTY ENERGY

＄NIFTY ENERGY – Strong rallies in select stocks

date	open	high	low	close
2025-05-26	35873.4	36127.6	35853.0	35882.6
2025-05-27	35906.7	36013.6	35634.0	35880.9
2025-05-28	35941.4	36094.1	35855.6	35888.6
2025-05-29	36020.4	36082.4	35858.0	35988.7
2025-05-30	36236.8	36421.4	35821.0	35879.1

Weekly Performance: 0.7%

The NIFTY ENERGY index was up 0.68% for the week vs the NIFTY 50 index which dropped 0.41% over the same period. Top gainers in the NIFTY ENERGY pack were GE T&D, Suzlon, Power India, up 18.9%, 14.9% and 12.49%, respectively. On the other hand, top losers were CESC, Thermax and Aegis Logistics, which fell 4.64, 4.5 and 4.22%, respectively. Declines outpaced advances 24 to 16.

Renewables witnessed strong buying on favorable industry tailwinds and strong earnings from key players. Suzlon and GE T&D’s strong earnings were among the key reasons for their significant rally.

 

NIFTY FMCG

＄NIFTY FMCG – ITC drags the index down

date	open	high	low	close
2025-05-26	56678.5	57084.9	56614.7	57049.7
2025-05-27	57133.6	57204.1	56236.9	56547.6
2025-05-28	55890.7	55970.8	55618.4	55703.9
2025-05-29	55846.7	55881.4	55309.2	55630.4
2025-05-30	55608.4	55736.9	55201.8	55283.0

Weekly Performance: -2.2%

Last week, the NIFTY FMCG index declined sharply. It fell by 2.16% and materially underperformed NIFTY 50 index. ITC was a key drag as it lost heavily (-4.2%). A combination of factors led to its poor stock performance. Its largest shareholder offloaded a part of its stake at a discount. In addition, the company had also declared a dividend. ITC was was followed by United Spirits, Godrej Consumer and Tata Consumer that fell 3.72%, 3.6% and 3.02%, respectively. On the other hand, Radico Khaitan was the top gainer, up 3.27%, followed by Marico, Britannia and Dabur that rose by 2.23%, 0.44% and 0.21%, respectively. Overall, the market breadth was negative as there were 4 advances to 11 declines.

 

NIFTY PHARMA

＄NIFTY PHARMA – Holds ground after the rate cap scare

date	open	high	low	close
2025-05-26	21541.7	21650.4	21443.3	21501.8
2025-05-27	21520.3	21590.8	21444.2	21524.9
2025-05-28	21562.6	21574.6	21356.3	21393.3
2025-05-29	21489.9	21610.7	21419.3	21589.3
2025-05-30	21570.8	21641.6	21390.1	21442.1

Weekly Performance: 0.0%

The Nifty Pharma weathered the correction in broader markets and closed flat. Glenmark, Granules, Zydus and Laurus Labs were among the top performers. Each of them were up 2.4% to 3.9%. On the other hand, Aurobindo Pharma, Alkem, Ajanta, IPCA Labs and JB Chemicals were among the top losers with each falling 1.5% to 4%. Advances-declines ratio was marginally in favor of advances – as 10 stocks advanced and 9 declined – pointing to a fairly steady market.
Most of the stocks had company specific events that impacted their performance. Poor earnings from Aurobindo and Alkem were among the key reasons for their corrections.

 

NIFTY REALTY

＄NIFTY REALTY – Strong buying interest driven by rate cut expectations

date	open	high	low	close
2025-05-26	939.6	953.7	935.5	944.0
2025-05-27	944.8	950.2	937.8	946.3
2025-05-28	948.2	955.1	942.5	944.9
2025-05-29	950.3	957.8	938.8	955.7
2025-05-30	958.5	962.0	942.8	949.3

Weekly Performance: 1.3%

The NIFTY REALTY index extended its gains and witnessed a strong rally as it gained 1.33% to outperform the NIFTY 50. Real estate stocks continue to see strong buying interest on expectations of continued rate cuts and a pick up in demand. Top gainers among the pack included Anant Raj Limited (9.52%), Sobha Limited (4.26%), Godrej Properties Limited (2.81%), DLF Limited (2.75%) and Prestige Estates Projects Limited (2.12%). Meanwhile, Phoenix Mills Limited fell 3.84%. Advances outnumbered decliners by 8:2.