Selective Buying as Broader Markets Slip

26 May 2025 , 12:46 PM

There was broad-based profit booking as NIFTY fell 0.67% last week. The correction was sharper in midcaps. NIFTY Midcap Index was down 1.7% on significant selling across many counters. Defence stocks bucked the trend and continued to see strong gains. BEL was the top NIFTY performer. Also, there was renewed interest in Reliance Power as it was up 15% last week. Banking Index, was a notable outperformer as there was renewed buying interest as profit booking/sector rotation trades fade and on expectations of continued rate cuts

 

NIFTY 50

＄NIFTY 50 – Defence Stocks Shine as Autos Skid

date	open	high	low	close
2025-05-19	25005.3	25062.9	24916.7	24945.4
2025-05-20	24996.2	25010.3	24669.7	24683.9
2025-05-21	24744.2	24946.2	24685.3	24813.4
2025-05-22	24733.9	24737.5	24462.4	24609.7
2025-05-23	24639.5	24909.1	24614.1	24853.2

Weekly Performance: -0.7%

The NIFTY 50 index fell by 0.67% last week and most of the stocks closed in the red. The biggest gainers in the sensex pack were Bharat Electronics up 5.47 per cent, HDFC Life Insurance Company (3.98%), Tata Steel (3.44%), Bajaj Auto (3.05%) and Jio Financial Services (1.71%). Conversely, Grasim Industries (-5.16%), Maruti Suzuki (-4.17%), Mahindra & Mahindra (-3.92%), EIH Associated Hotels (-3.34%), and Sun Pharmaceutical Industries (-2.96%) were among the top losers. 15 stocks advanced in the market and 35 declined, suggesting a bearish mood.

 

NIFTY MIDCAP SELECT

＄NIFTY MIDCAP SELECT – Significant correction on profit booking.

date	open	high	low	close
2025-05-19	12832.3	12853.8	12732.8	12761.8
2025-05-20	12833.6	12842.6	12555.6	12583.2
2025-05-21	12607.8	12696.0	12520.5	12620.8
2025-05-22	12579.5	12579.5	12408.8	12473.9
2025-05-23	12503.0	12621.1	12462.5	12592.2

Weekly Performance: -1.7%

The NIFTY MIDCAP SELECT index was down 1.71% last week after increasing for two weeks. The top gainers were BHEL - 1.78% and HDFC Asset Management Company Limited – 1.62%. Policybazaar and Ashok Leyland Limited too jumped over 1.22% and 0.96%, respectively. On the flip side, Dixon Technologies India Limited corrected 9.85% and Idea Cellular Limited dropped 8.28%. There were 19 decliners and only 6 gainers over the course of the week, suggesting a broadly negative backdrop. The losses this week were a departure from the index’s recent uptrend, which had seen a 1.08% rise over the past two weeks.

 

NIFTY IT

＄NIFTY IT – Profit Booking Hits IT

date	open	high	low	close
2025-05-19	37845.6	37917.2	37429.6	37477.8
2025-05-20	37722.2	38019.1	37234.2	37283.5
2025-05-21	37418.2	37618.9	37112.6	37540.1
2025-05-22	37246.2	37316.3	36868.6	37050.1
2025-05-23	37108.7	37826.4	37062.8	37403.6

Weekly Performance: -1.5%

The NIFTY IT Index fell 1.5% last week, underperforming the NIFTY 50 which was down 0.67% over the same period. Oracle Financial Services Software, Wipro, Mphasis, Tech Mahindra and Infosys were top losers in the index shedding between 3.79% and 1.58%. There were no advancing stocks as all of the index stocks declined. Last week was a marked divergence in performance from the recent past where it witnessed significant buying interest. Profit booking was likely responsible for its underperformance.

 

NIFTY AUTO

＄NIFTY AUTO – A material correction

date	open	high	low	close
2025-05-19	23943.4	24174.2	23933.2	24052.6
2025-05-20	24111.5	24138.7	23495.6	23531.2
2025-05-21	23580.4	23914.8	23503.9	23700.1
2025-05-22	23629.8	23643.8	23291.4	23459.9
2025-05-23	23528.1	23595.2	23423.4	23515.2

Weekly Performance: -1.8%

The NIFTY AUTO Index corrected heavily. It was down 1.83% for the week compared with 0.67% fall in broader NIFTY 50 Index. Maruti and Mahindra & Mahindra were the biggest losers, falling 4.17% and 3.92%, respectively, whereas Bajaj Auto and MRF were the top gainers at 3.05% and 2.43%, respectively.

 

NIFTY BANK

＄NIFTY BANK – Renewed Buying Interest

date	open	high	low	close
2025-05-19	55326.1	55695.6	55296.6	55420.7
2025-05-20	55445.3	55568.4	54829.4	54877.4
2025-05-21	55060.2	55336.9	54690.8	55075.1
2025-05-22	54875.9	54996.1	54576.6	54941.3
2025-05-23	54959.3	55441.3	54854.5	55398.2

Weekly Performance: 0.1%

The NIFTY BANK Index showed a marginal gain of 0.08% but outperformed the broader NIFTY 50 materially. Among the gainers in the NIFTY BANK Index were many PSU stocks. Bank of Baroda, Federal Bank, IndusInd Bank, AU Small Finance Bank and Punjab National Bank added between 2.58 percent and 1.49 percent. On the contrary, IDFC First Bank, Canara Bank, Kotak Mahindra Bank, ICICI Bank and State Bank of India were the top losers, shedding up to 3.13%. The market breadth was even as number of advances matched declines.
Banking stocks are seeing a revival in buying sentiment as sector rotation and profit booking trades moderate. In addition, the sharply lower headline inflation and RBI’s ‘accommodative’ stance is also leading to expectations of rate cuts continuing.

 

NIFTY ENERGY

＄NIFTY ENERGY – Reliance Power stages a sharp rally

date	open	high	low	close
2025-05-19	35790.3	35959.8	35623.6	35690.9
2025-05-20	35847.9	35967.6	35382.2	35435.1
2025-05-21	35531.0	35737.4	35296.3	35647.1
2025-05-22	35577.9	35645.3	35072.7	35357.1
2025-05-23	35431.2	35707.4	35318.9	35637.9

Weekly Performance: -0.1%

NIFTY ENERGY index was flat for the week and outperformed NIFTY 50. Prominent gainers in the index were Reliance Power, Power India, Siemens, Thermax, and CESC, which rose 15% to 3.09%, respectively. Conversely, Adani Renewable Energy, NHPC, Aegis Logistics, Triveni turbine and SJVN were the top laggards, shedding 3.69% to 4.21%. Declines outnumbered advances by 24 to 15.
Some of the ADAG group stocks rallied materially last week. Reliance Power’s surge is being attributed to the company’s attempts to diversify into renewable energy. On contrary, many of the renewable stocks were also down last week.

 

NIFTY FMCG

＄NIFTY FMCG – A broadbased correction as it drags the broader markets.

date	open	high	low	close
2025-05-19	57038.4	57370.8	56805.9	56955.7
2025-05-20	57209.6	57229.1	56142.6	56206.2
2025-05-21	56369.4	56753.5	56235.2	56413.1
2025-05-22	56326.9	56334.0	55305.2	55598.1
2025-05-23	56022.0	56679.8	55789.9	56502.1

Weekly Performance: -1.0%

The NIFTY FMCG index fell 0.98% over past one week compared to 0.67% fall in NIFTY 50 index. United Sprits, Dabur, Nestle India, ITC bucked the trend and advanced up to 2.5%. On the other hand, Colgate Palmolive, Emami, Patanjali, Radico Khaitan and Marico were the top losers, falling between 3.25 percent and 7.82 percent. Just four stocks advanced while 11 fell. The index fall follows a two-week surge for the FMCG Index

 

NIFTY PHARMA

＄NIFTY PHARMA – A mixed bag as US considers price caps.

date	open	high	low	close
2025-05-19	21723.8	22026.7	21662.5	21740.4
2025-05-20	21819.7	21857.7	21427.8	21456.2
2025-05-21	21489.2	21947.5	21461.2	21723.7
2025-05-22	21703.3	21741.7	21431.4	21521.8
2025-05-23	21389.3	21452.1	21172.8	21434.2

Weekly Performance: -0.9%

The Nifty Pharma Index slid 0.92% during the week, against a 0.67% fall in the Nifty 50. The top gainers among the constituents of Nifty Pharma were IPCA Laboratories which surged 4.84%, followed by Natco Pharma which gained 4.45%, Glenmark Pharmaceuticals which was up 4.04% and Divis Laboratories that also advanced 3.24%. On the other hand, Mankind Pharma, Lupin and Sun Pharma were the top losers slipping 5.45%, 4.33% and 2.96%, respectively.
The key event of the week was a proposal to cut prescription drug prices in the US. While this impacts many pharma companies, generic manufacturers may face less pressure due to already low prices.

 

NIFTY REALTY

＄NIFTY REALTY – Among the best performers of the week

date	open	high	low	close
2025-05-19	914.8	935.3	908.5	933.2
2025-05-20	946.5	947.3	920.2	922.8
2025-05-21	927.7	945.0	926.5	938.7
2025-05-22	937.2	943.0	927.0	934.4
2025-05-23	934.7	944.0	932.1	936.8

Weekly Performance: 2.7%

The NIFTY REALTY was among the strongest performers as it gained 2.66%. During this period DLF, Oberoi Realty, Phoenix Mills, Lodha Developers and Godrej Properties emerged as the top gainers, fetching returns from 0.29% to 8.46%. In the red were Brigade Enterprises, down 1.66% and Anant Raj Industries, down 0.31%. The index was tilted more toward advances; seven stocks gained while only two declined.