12 May 2025 , 01:29 PM
WeeklyMarketWrap -Auto and IT Outperform. Profit Booking and Border Tensions Impact Other Sectors
Indian markets navigated a tough week as tensions simmered over the border. Sector rotation and profit booking were the continuing themes as investors chased underperforming stocks. Realty stocks faced the brunt as they fell more than 6%. Key realty players in major metros were the worst hit. Auto and IT fared well with only Auto stocks rising for the week. Sectors like Energy and Pharma that had strong/consecutive weeks of gains witnessed profit booking. So did the banks. The ceasefire announcement at the end of the week bodes well for the week ahead. Macro data releases (IIP, CPI) and developments regarding US trade policy will be the key factors to watchout.
＄NIFTY 50 – A Week Marred By Escalating Military Conflict
| date | open | high | low | close |
| 2025-05-02 | 24311.9 | 24589.2 | 24238.5 | 24346.7 |
| 2025-05-05 | 24419.5 | 24526.4 | 24400.7 | 24461.2 |
| 2025-05-06 | 24500.8 | 24509.7 | 24331.8 | 24379.6 |
| 2025-05-07 | 24233.3 | 24449.6 | 24220.0 | 24414.4 |
| 2025-05-08 | 24431.5 | 24447.2 | 24150.2 | 24273.8 |
| 2025-05-09 | 23935.8 | 24164.2 | 23935.8 | 24008.0 |
Weekly Performance: -1.4%
The NIFTY 50 index performed poorly last week and fell -1.39%. Tata Group stocks were among the top performers. Tata Motors led the gainers category with 8.74%, followed by Titan, L&T, Adani Ports, and Hero MotoCorp. On the flip side, Sun Pharma, Asian Paints, NTPC, IndusInd Bank, and Tata Consumer were among the top losers with significant percentage declines. Market breadth was negative as only 15 stocks closed the week in Green. An escalation in military conflict with a nuclear armed neighbor was the key worry. In that regard, the ceasefire announcement should be a key tailwind for the markets in the weeks ahead.
＄NIFTY MIDCAP SELECT – A Broadbased Rally As Midcaps Outperform Large Caps
| date | open | high | low | close |
| 2025-05-02 | 12036.0 | 12221.0 | 11940.8 | 11977.0 |
| 2025-05-05 | 12063.3 | 12257.7 | 12057.0 | 12242.3 |
| 2025-05-06 | 12289.2 | 12295.0 | 11966.5 | 11985.9 |
| 2025-05-07 | 11884.0 | 12239.5 | 11879.3 | 12217.7 |
| 2025-05-08 | 12277.5 | 12298.2 | 11920.0 | 11983.4 |
| 2025-05-09 | 11744.1 | 12048.3 | 11743.4 | 12021.9 |
Weekly Performance: 0.4%
Despite the fall in large cap stocks, there was strong buying interest in the midcaps. The NIFTY MIDCAP SELECT index was up 0.37% for the week ended 2nd May. The reasons were both a broadbased rally as well as stock specific factors. Advanced outweighted declines 14 to 11. Yes Bank was the top gainer at 13.28%. Top gainers also included Polycab with 5.77%, and Bharat Forge and Co Forge with 5.76% and 4.92% respectively. Godrej Properties was the top loser with a -10.51% change. OFSS -7.86% and Dixon -6.79% also lost heavily. The midcap index has closed positive for three consecutive weeks, with a 6.7% gain during this period. After underperforming the large caps, mid caps are starting to see buying interest.
＄NIFTY IT – An Outperformance As Tariff Concerns Abate
| date | open | high | low | close |
| 2025-05-02 | 35868.5 | 36300.6 | 35637.4 | 35891.9 |
| 2025-05-05 | 36042.6 | 36352.4 | 35949.4 | 35991.2 |
| 2025-05-06 | 36129.3 | 36314.2 | 35778.8 | 35869.2 |
| 2025-05-07 | 35479.1 | 36042.2 | 35440.6 | 35920.3 |
| 2025-05-08 | 35960.9 | 36240.2 | 35832.8 | 36002.4 |
| 2025-05-09 | 35490.9 | 35929.3 | 35488.4 | 35880.1 |
Weekly Performance: -0.0%
NIFTY IT closed flat (-0.03%) and outperformed NIFTY. A moderation in tariff war worries and sector rotation were likely reasons for its outperformance. Coforge was the top performer as it gained 5% for the week on good results. Mphasis lost the most, down 2.65%. Market breadth was skewed toward the advances as they outpaced declines 7 to 3.
＄NIFTY AUTO
| date | open | high | low | close |
| 2025-05-02 | 22323.2 | 22687.9 | 22198.3 | 22286.5 |
| 2025-05-05 | 22443.2 | 22732.4 | 22366.3 | 22699.2 |
| 2025-05-06 | 22964.9 | 23092.7 | 22668.7 | 22737.6 |
| 2025-05-07 | 22436.8 | 23135.5 | 22435.3 | 23114.1 |
| 2025-05-08 | 23213.8 | 23242.1 | 22560.2 | 22674.2 |
| 2025-05-09 | 22241.4 | 22804.8 | 22220.7 | 22627.8 |
Weekly Performance: 1.5%
NIFTY AUTO stocks were among the best performing stocks as the index gained 1.53% against NIFTY’s 1.39% fall. Among the gainers in the index, Tata Motors climbed 8.75% percent followed by Bharat Forge at 5.76% and Motherson at 4.75%. On the other hand, 2W players fell as worries over a slowdown increased. Eicher Motors, Bajaj and TVS fell 1% to 1.8% each. Overall, market breadth was positive as advances outnumbered declines 10 to 5.
＄NIFTY BANK – Corrects Sharply As Profit Booking Continues
| date | open | high | low | close |
| 2025-05-02 | 55100.9 | 55691.9 | 54994.4 | 55115.4 |
| 2025-05-05 | 55065.8 | 55345.5 | 54786.5 | 54919.5 |
| 2025-05-06 | 54918.2 | 55036.9 | 54172.9 | 54271.4 |
| 2025-05-07 | 54013.4 | 54684.3 | 53919.9 | 54610.9 |
| 2025-05-08 | 54801.8 | 54937.2 | 54108.0 | 54365.6 |
| 2025-05-09 | 53595.9 | 54054.8 | 53483.1 | 53595.2 |
Weekly Performance: -2.8%
NIFTY BANK Index fell sharply (-2.76%) and underperformed NIFTY. In contrast to IT, banking stocks likely witnessed headwinds from sector rotation as investors book profits. Sharp fall in heavyweights – ICICI Bank (-2.8%) and Kotak Bank (-3.4%) – was a key reason for the overall decline in the index. Market breadth was also weak as declines outnumbered advances 9 to 3. PSU Banks – Bank of Baroda and PNB – were the worst performers as they fell 11% and 7% respectively. Upcoming data from RBI over credit growth will be keenly watched as investors try to assess the outlook.
＄NIFTY ENERGY – Profit booking after a strong 3 week rally
| date | open | high | low | close |
| 2025-05-02 | 34206.1 | 34600.6 | 33990.6 | 34138.8 |
| 2025-05-05 | 34252.5 | 34639.4 | 34106.6 | 34583.6 |
| 2025-05-06 | 34663.6 | 34727.0 | 33670.1 | 33771.1 |
| 2025-05-07 | 33231.7 | 34141.6 | 33229.4 | 34048.1 |
| 2025-05-08 | 34175.6 | 34354.9 | 33305.6 | 33534.8 |
| 2025-05-09 | 32800.5 | 33413.1 | 32791.9 | 33337.6 |
Weekly Performance: -2.4%
After a 3 week rally of ~5%, NIFTY ENERGY index witnessed significant profit booking. Market breadth was negative as declines outnumbered advances 29 to 11. Top 5 losers lost heavily. Suzlon, JP Power, Adani Ensol, NHPC and Torrent Power – each lost between 6% and 8%. On the other hand, GE T&D bucked the trend and gained 6%.
＄NIFTY FMCG – Index drifts alongside NIFTY
| date | open | high | low | close |
| 2025-05-02 | 56242.1 | 56588.3 | 55875.8 | 56252.2 |
| 2025-05-05 | 56417.9 | 57047.9 | 56360.6 | 56936.2 |
| 2025-05-06 | 56943.4 | 57197.7 | 56715.6 | 56883.4 |
| 2025-05-07 | 56501.6 | 56756.6 | 56302.2 | 56590.2 |
| 2025-05-08 | 56410.4 | 56487.3 | 55805.6 | 56020.7 |
| 2025-05-09 | 55203.2 | 55703.7 | 55038.5 | 55633.0 |
Weekly Performance: -1.1%
The NIFTY FMCG index fell 1.1% last week and marginally outperformed the NIFTY 50. Prominent gainers in the pack were Marico and Britannia. Patanjali and VBL were the top losers. In addition, market breadth was bearish as declines outnumbered advances 9 to 6. FMCG stocks continue to see selective buying as valuations remain the key concern for investors. Upcoming inflation data and growth in rural consumption remain key signals to keep a watch on.
＄NIFTY PHARMA – A sharp underperformance as sector sees widespread selloff
| date | open | high | low | close |
| 2025-05-02 | 21729.9 | 21863.0 | 21495.1 | 21627.4 |
| 2025-05-05 | 21699.1 | 21802.1 | 21627.0 | 21775.8 |
| 2025-05-06 | 21672.8 | 21700.3 | 21359.3 | 21534.3 |
| 2025-05-07 | 21320.8 | 21556.1 | 21313.4 | 21462.4 |
| 2025-05-08 | 21464.8 | 21517.9 | 21013.0 | 21115.1 |
| 2025-05-09 | 20855.1 | 21107.3 | 20825.2 | 21071.8 |
Weekly Performance: -2.6%
The Nifty Pharma index fell 2.6% and ended the week with a sharp underperformance. The fall in the index happened after two consecutive weeks of gains. Market breadth was extremely weak as 16 of the 20 stocks fell. Among other things, increasing rhetoric over pharma price cuts were a key reason. Biocon was the top performer was the week as it gained 3.9% and continued to recover. Laurus Labs, Sun Pharma, Aurobindo Pharma lost heavily and closed the week more than 4% down each. Newsflow and earnings over the past few weeks had resulted in sharp moves in a number of pharma stocks. Going forward, pharma policy environment in US remains a key for stock performance.
＄NIFTY REALTY – Realty stocks hit hardest
| date | open | high | low | close |
| 2025-05-02 | 879.2 | 895.0 | 873.3 | 881.5 |
| 2025-05-05 | 887.2 | 890.9 | 873.7 | 887.3 |
| 2025-05-06 | 886.4 | 890.1 | 853.0 | 855.6 |
| 2025-05-07 | 846.5 | 866.8 | 842.1 | 865.2 |
| 2025-05-08 | 866.0 | 871.7 | 835.0 | 843.8 |
| 2025-05-09 | 824.5 | 835.2 | 808.4 | 823.8 |
Weekly Performance: -6.6%
NIFTY REALTY cracked more than 6% as nearly all the index stocks fell. Worries over escalating military conflict impacted them the most. Major property developers across key metros – Godrej Properties, DLF and Shobha – took the worst hit. Each of the stocks corrected more than 7%. Brigade was the only stock that closed positive.
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