Weekly Market Wrap – NIFTY snaps a six week losing streak

18 Aug 2025 , 05:10 PM

NIFTY had declined for six consecutive weeks before rebounding last week. The losing streak was among the longest since the Covid pandemic. Auto gained the most while most sectors witnessed a robust performance. FMCG, on the other hand, declined as investors likely booked profits. Midcaps, too, witnessed a rally.

With most of the company earnings done, focus now shifts to domestic policies and geopolitics. The outcome of the US-Russia-Ukraine meeting remains a key event to watch. Domestically, GST reform could lead to lower GST rates and a boost to consumption.

NIFTY 50 – Turn Around after Six Weeks Of Decline

Weekly Performance: 1.1%

date	open	high	low	close
2025-08-14	24607.2	24673.7	24596.9	24631.3
2025-08-13	24586.2	24664.6	24535.2	24619.3
2025-08-12	24563.3	24702.6	24465.7	24487.4
2025-08-11	24371.5	24600.8	24347.4	24585.1
2025-08-08	24544.2	24585.5	24337.5	24363.3

Source: NSE

Figure: Recent performance

The NIFTY 50 closed the week of 16 August 2025 with a gain of 1.10%. It ended a losing streak of six weeks. Gains in HDFC Bank, Mahindra & Mahindra, Infosys, Eternal, and State Bank of India contributed more than 0.46 % to the index gain. Market breadth was overwhelmingly positive as 39 stocks advanced and only 11 declined.  The list of top gainers included Apollo Hospitals, Eternal, Cipla, Tata Motors, and Adani Enterprises. On the other hand, ICICI Bank, Bajaj Finance, ITC, Tata Steel, and Adani Ports were among the losers in the pack.

Gains in weekly top performers were driven by strong earnings growth, strategic acquisitions, and positive analyst outlooks.

• HDFC Bank: The bank’s investment in NSDL was also in focus as it surged to INR 779 crore.
• M&M The company outpaced the industry with 10.5% Q1FY26 volume growth, expanding its market share to 45.2% across all HP segments. It was also among the large-caps posting over 20% sales growth in Q1.
• Infosys: Infosys agreed to buy a 75% stake in Australia’s Versent Group for AUD 233.25 million, strengthening its presence in the cloud and AI services market. The deal is expected to close in H2 FY26, pending regulatory approvals.
• Eternal: The company’s stock hit a seven-month high, driven by Blinkit’s impressive growth in the June quarter. Over 30 Eternal executives converted options to more than 1 crore of company shares.
• ICICI Bank: The stock was in the news for its revised minimum average monthly balance requirements for new savings accounts, which it has rolled back.

NIFTY MIDCAP SELECT – Index turns around after a losing streak

Weekly Performance: 1.1%

date	open	high	Low	close
2025-08-14	12718.5	12743.0	12601.0	12639.1
2025-08-13	12623.8	12726.2	12618.3	12699.1
2025-08-12	12630.0	12663.5	12549.8	12561.6
2025-08-11	12493.5	12631.3	12452.5	12610.5
2025-08-08	12762.4	12762.4	12493.3	12506.3

Source: NSE

Figure: Recent performance

 

NIFTY MIDCAP SELECT index gained 1.06 % in the week ending August 16, 2025. This came after three weeks of losses. BSE, Persistent Systems, Policybazaar were top gainers, while Ashok Leyland, Bharat Forge were among the top contributors to the index. Meanwhile, Max Healthcare, Hindustan Petroleum, Idea, Colgate Palmolive, and Voltas were the top laggards, sulking up to 3.68 %. The performance of the index over the last five weeks indicates a turnaround in fortunes, since the index had fallen in three of the last four weeks.

Weekly top performers were driven by participation in the broader rally and stock-specific themes. On the other hand, losers were mostly due to weak earnings or expectations of weak earnings.

• IDEA: The stock hit a fresh 52-week low ahead of Q1 results. Vodafone Idea’s Q1 earnings are expected to reveal continued financial strain despite some operational improvements.
• VOLTAS: The stock declined 8% after Q1 profit slumped 58% YoY on weak AC sales, despite retaining market leadership with a bullish analyst consensus.
• Yes Bank: Shares fell 20% from their peak despite a strong Q1 performance. Furthermore, the market regulator, SEBI, rejected settlement pleas from Anil Ambani and Rana Kapoor in the Yes Bank case.

NIFTY IT – Participates in the broader rally

Weekly Performance: 1.3%

Date	open	high	Low	close
2025-08-14	34732.2	35332.2	34732.2	34833.2
2025-08-13	34756.6	34842.1	34552.9	34692.9
2025-08-12	34589.9	35072.5	34561.3	34674.3
2025-08-11	34367.2	34624.4	34228.0	34544.6
2025-08-08	34603.0	34643.8	34350.9	34398.5

Source: NSE

Figure: Recent performance

For the week ending August 16, 2025, the NIFTY IT index rose by 1.26%. Key contributors to the Nifty IT Index were Infosys, Wipro, Persistent Systems, Coforge and HCL Technologies, which together contributed 62.7% of the index’s gain. Tata Consultancy Services, on the other hand, was the biggest loser in the pack, down 0.46 %.

An analysis over the past 5 years indicates that the index has recorded its first weekly gain after 4 consecutive losses. The advance-decline ratio of index was overwhelmingly positive as only 1 stock was down.

NIFTY BANK – Cautious Optimism Amidst Volatility

Weekly Performance: 0.6%

date	Open	high	Low	close
2025-08-14	55102.6	55472.8	55074.3	55341.9
2025-08-13	55340.1	55340.1	55026.9	55181.4
2025-08-12	55441.1	55566.7	55001.5	55043.7
2025-08-11	54999.4	55582.1	54927.6	55510.8
2025-08-08	55609.4	55652.6	54905.6	55004.9

Source: NSE

The NIFTY BANK index ended the week with a modest gain of 0.61%, as the banking sector witnessed a mixed performance. The top contributors to the index’s gain were HDFC Bank, State Bank of India, Kotak Mahindra Bank, Axis Bank, and Punjab National Bank. These stocks collectively contributed 0.69% to the index’s gain, with State Bank of India being the standout performer with a 2.77% gain. On the other hand, ICICI Bank, IndusInd Bank, IDFC First Bank, and Federal Bank were the notable laggards, dragging the index down by 0.24%.

A glance at the past five weeks’ performance reveals a trend of volatility, with the index experiencing a decline in three out of the last five weeks. The advance-decline ratio of 8 advances to 4 declines also indicates reasonably broad-based growth.

Following companies had significant events during the week:

• ICICI Bank: It faced a backlash from higher minimum account balances and had to roll them back.
• PSU Banks: Arguably, retail loans witnessed faster growth for PSU Banks as private sector banks pulled back.
• State Bank of India: It faced challenges due to the US tariffs and sanctions risk, leading to the halt of Nayara transactions.
• PNB: The stock was in the news due to the RBI’s clarification on minimum balance requirements, which allowed state-owned banks like PNB to eliminate penalties for not maintaining minimum balances. It was also one of the leading public sector banks in retail loan growth.

• IDFC First Bank: The bank’s shares were in focus after Platinum Invictus secured RBI nod for a Rs 2,624 crore investment.

NIFTY ENERGY – Ekes out a modest gain

Weekly Performance: 0.2%

date	open	high	Low	close
2025-08-14	34780.9	34804.5	34419.0	34469.1
2025-08-13	34872.6	34944.6	34636.1	34739.4
2025-08-12	34661.1	34881.6	34635.7	34741.4
2025-08-11	34426.2	34640.2	34329.9	34610.4
2025-08-08	34635.6	34714.9	34340.1	34391.9

Source: NSE

NIFTY ENERGY index gained 0.22% for the week ended August 16, 2025, led by mixed sector performance. Some of the top gainers of the index were Oil and Natural Gas Corporation (ONGC), Siemens, Coal India, NTPC and GAIL, up between 1.25 % and 4.53 %. These stocks added about 0.52% to the index’s gain. The losers included Suzlon Energy, Oil India, Hindustan Petroleum, Adani Enterprises and Inox Wind. Among stocks, the fall in Suzlon Energy was the biggest drag, and shaved off 0.35% from the index. Market breadth was slightly negative as 19 stocks fell and 20 rose among the 41 constituents.

The week’s top performers were influenced by a mix of earnings announcements and analyst upgrades. Following companies had significant events during the week:

• ONGC: The stock rose 1.5% despite mixed Q1 results, with an 18.2% YoY rise in consolidated net profit but a 10.2% YoY drop in standalone profit.

NIFTY FMCG – A rare loser in a rebound week.

Weekly Performance: -0.4%

date	open	high	Low	close
2025-08-14	55089.1	55139.6	54573.8	54656.3
2025-08-13	55135.0	55229.6	54771.5	55010.1
2025-08-12	55336.5	55596.6	54973.4	55034.4
2025-08-11	54855.3	55352.6	54630.9	55309.9
2025-08-08	55343.9	55517.9	54844.6	54900.9

Source: NSE

The NIFTY FMCG index ended the week with a marginal loss of 0.45% with its constituents ending with mixed performance. United Spirits, Varun Beverages, and Radico Khaitan were the top gainers, advancing up to 2.15 %. However, these gains were largely negated by losses in leading contributors or stocks with significant weights, such as ITC, Hindustan Unilever, and Britannia Industries, the bottom contributors.

FMCG index corrected in 3 of the past 5 weeks. While the correction was lower in the past week, it significantly underperformed most other indices. Market breadth was negative with only 7 stocks advancing and 8 declining, as their advance-decline ratio was at 0.47.

Key themes that influenced the performance include strong quarterly earnings and poor volume at some companies.

• United Spirits: The company’s strong quarterly earnings, with a significant increase in revenue and profitability, was viewed favorably by investors.
• ITC and Hindustan Unilever: Both companies reported weak quarterly earnings, with ITC’s cigarette sales being impacted by higher taxes and Hindustan Unilever’s volume growth being lower than expected.
• Britannia and Nestle: The company’s weak quarterly earnings were attributed to higher input costs and lower sales volume.
• Colgate Palmolive: Headwinds over rural demand and higher competition in the oral care segment led to selling pressure

NIFTY AUTO – Gears up with Auto Majors setting the trend!

Weekly Performance: 2.7%

date	open	high	low	close
2025-08-14	24136.3	24233.3	24034.1	24118.8
2025-08-13	23946.2	24190.1	23913.3	24122.7
2025-08-12	23741.1	24011.7	23732.4	23856.6
2025-08-11	23526.6	23792.8	23440.2	23723.8
2025-08-08	23810.3	23890.8	23439.1	23474.7

Source: NSE

 

NIFTY AUTO index rose 2.74% for the week on the back of strong earnings by auto majors, including M&M, Tata Motors, and Maruti Suzuki. These two companies were among the top gainers of the index and gained 0.92% and 0.66% respectively. Among other gainers were Tube Investments of India and Ashok Leyland, up 6.16% and 5.67%, respectively. Advance-decline ratio was also positive, with 11 advances and 4 declines. Auto has been among the better-performing indices in the recent past. The index has gained in three of the last five weeks.

Key themes that influenced the performance of auto stocks include Q1 earnings, market trends, and analyst outlook.

• M&M: The company outpaced the industry with 10.5% Q1 growth, expanding market share to 45.2% across all HP segments, and reported over 20% sales growth in Q1.
• MRF: The stock was the worst performer, declining 2.97% due to concerns over rising raw material costs, particularly rubber prices, which could impact its profitability.
• Balkirshna Industries: The stock fell 1.18% on concerns regarding rubber price inflation and the company’s exposure to the commercial vehicle segment.

NIFTY PHARMA – Strong rebound

Weekly Performance: 3.5%

date	open	high	low	close
2025-08-14	22176.8	22370.4	22077.5	22151.8
2025-08-13	21803.4	22171.1	21794.3	22130.3
2025-08-12	21604.7	21900.0	21554.7	21753.5
2025-08-11	21391.8	21783.6	21324.1	21604.7
2025-08-08	21633.1	21676.2	21375.9	21402.2

Source: NSE

Figure: Recent performance

After a sharp sell-off in the previous two weeks, the NIFTY PHARMA index advanced 3.50% during the week ended August 16, 2025. Sun Pharmaceutical Industries, Cipla, Alkem Laboratories, Divi’s Laboratories, and Dr. Reddy’s Laboratories were the top gainers on the index. These stocks together added over 2.12% to the index jump, with Alkem Laboratories leading the pack (+12.25%). Meanwhile, the biggest losers were Natco Pharma, IPCA Laboratories, and Mankind Pharma, which pulled the index lower by 0.11 % together. The recovery was broad-based as 18 stocks gained while only 2 declined.

NIFTY REALTY – Modest gain after sharp declines

Weekly Performance: 0.6%

Date	open	high	low	close
2025-08-14	888.9	893.2	877.2	879.3
2025-08-13	885.4	893.2	884.0	886.0
2025-08-12	891.4	891.5	880.8	883.9
2025-08-11	875.2	892.0	871.5	890.4
2025-08-08	892.2	896.6	871.4	874.2

Source: NSE

 

The NIFTY REALTY index had a weekly gain of 0.59% as the realty space recorded a mixed performance. Leading the gains were Lodha, Oberoi Realty, DLF, Phoenix, and Sobha, while Lodha and Oberoi Realty, in particular, were the best-performers, adding 2.41% and 3.04%, respectively. On the other hand, Godrej Properties, Brigade Enterprises, and Prestige Estates were among the losers, with Godrej Properties falling 1.79 %. A quick look at the five-week performance sheds light on a choppy picture for the index. The market breadth was marginally positive with 6 advances and 4 declines.