Broad-Based Rally Lifts Indian Equities; All Sectors in the Green

Indian Developments

The Indian stock market's performance for the week ending 16 May 2025 was influenced by a mix of domestic economic indicators, global cues and FII’s Inflow of around Rs 5392 Cr during the week.

Indian Indices ended on strong note supported by US inflation data, RBI’s accommodative stance, sectoral strength, robust corporate earnings specially in sectors like auto, banking and real estate. Mid Cap and Small Cap Indices also outperformed

India’s latest export and import data indicated a stable trade balance, which helped support the rupee. However, despite this stability, the rupee still depreciated against the US dollar, contributing to a rise in domestic gold prices due to higher import costs.

For the week ending May 16 ,2025, the Nifty 50 ,Nifty Midcap 150 and Nifty Small Cap indices shot up by 4.21%, 6.96% and 8.79% respectively.

Sectoral Developments

All sectoral indices closed the week in positive territory, with Nifty Defense leading the gains at 17.21%, followed by Nifty Capital Markets (11.60%), Nifty Realty (10.78%), Nifty Metal (9.28%), and Nifty Auto (5.86%).

On the lower end of the spectrum, Nifty FMCG (2.57%), Nifty Pharma (2.66%), and Nifty Healthcare (2.92%) recorded the smallest gains among the sectors.

Global Developments

Global stock markets ended the week on a positive note, buoyed by easing trade tensions and the prospect of reduced tariffs on Chinese goods. US equities led the rally, supported by a decline in inflation (as reflected in the US CPI), strong corporate earnings, and optimistic projections for global economic growth.

While ongoing geopolitical tensions in the Middle East and Eastern Europe introduced some volatility, markets remained largely resilient. Additionally, lower interest rates enhanced the appeal of equities over bonds, further supporting market momentum.

US indices, include S&P 500 index ,Dow Jones and Nasdaq 100 advanced by 4.53%, 2.36%, 6.38% respectively. European Markets FTSE 100 and Nikkei 225 increased by 1.44% and 2.24% respectively. Asian Market Kospi and Hang Seng and Shanghai upsurged by 1.65%,2.66% and 0.89% respectively bolstered by positive economic data and strong corporate earnings.

Other Markets:

• Brent crude prices increased to around $ 64.89 per barrel.
• The rupee was depreciated to 85.52 levels against the US dollar on the back of RBI intervention.
• The Gold spot price stood at ~Rs 96,061- per 10 grams, up by 3% from previous week,
• The 10 Year Benchmark G-Sec yield closed at 6.26% this week.

Source: www.nseindices.com; google finance, MCX Gold Prices; www.rbi.org.in; Morningstar and tradingeconomics.com, ccilindia.com, Economic times

Data for week ended on May 16 , 2025.

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