The Indian stock market closed the week on a cautious note, marking the third consecutive weekly decline for key indices. A mix of global uncertainties, mixed corporate earnings, and contrasting institutional investor behaviour influenced market dynamics. Despite subdued overall sentiment, PSU Banks and Metals sectors showed notable resilience, offering a selective silver lining for investors.
Let’s explore the week’s key developments and sectoral performances.
Nifty and Sensex End Week on a Cautious Note
Both Nifty 50 and Sensex ended lower this week, reflecting persistent bearish sentiment amid a blend of international and domestic challenges.
- Nifty 50 declined by 1%, losing ~250 points to close near 24,750.
- Sensexfell by 0.88%, down around 725 points to end at 81,451.
Wrap-up: Benchmark indices remained under pressure as markets grappled with a mix of domestic and global concerns.
Factors Influencing the Market’s Cautious Trajectory
Several global and domestic factors contributed to the subdued market mood, creating a complex investing environment.
- Global Trade Uncertainty: US trade policy concerns weighed heavily, impacting IT sector
- Mixed Q4 Earnings: Corporate results remained uneven, triggering selective stock
- Divergent Institutional Activity: FIIs increased short positions, while DIIs maintained strong net
- Sectoral Divergence: IT and FMCG sectors faced selling pressure; PSU Banks and Metals gained
- Rupee Depreciation: The Indian Rupee weakened against the US Dollar, adding
Wrap-up: These mixed signals kept the market in a tug-of-war scenario through the week.
Sectoral Performance: PSU Banks and Metals Buck the Trend
While many sectors struggled, PSU Banks and Metals demonstrated significant strength, emerging as bright spots.
- PSU Banks:
- Nifty PSU Bank index surged 3% for the week
- Gains led by Bank of Maharashtra, Indian Overseas Bank, and Union Bank of India
- Metals:
- Metal stocks rallied, supported by positive global commodity trends
- Under Pressure:
- Nifty IT and FMCG indices declined, with ITC’s weakness dragging FMCG down
- Nifty Bank and Nifty Auto indices also posted declines
Wrap-up: PSU Banks and Metals stood out, attracting selective investor interest in an otherwise cautious market.
Top Performing and Losing Stocks of the Week
Top Gainers:
- Suzlon Energy (+13.6%): Surged on robust Q4 results with a 365% Y-o-Y profit increase and a 73% rise in revenue, leading to a target price upgrade by Motilal Oswal.
- BSE Ltd. (+11%): Hit a record high amid heavy trading volumes and strong Q4 earnings, reflecting positive investor sentiment.
- Muthoot Finance (+6.68%): Gained after the Finance Ministry urged the RBI to delay new gold loan norms, alleviating concerns for gold loan NBFCs.
- Bharat Dynamics (+5.35%): Benefited from improved execution and easing supply chain challenges, boosting revenue growth prospects.
- Eternal Ltd. (+2.84%): Recovered from earlier losses despite high valuation concerns, indicating investor confidence in its long-term prospects.
Top Losers:
- Ola Electric (-10%): Plunged after reporting a ₹870 crore Q4 loss and a 62% drop in revenue, raising concerns over its financial health.
- Welspun Living Ltd. (-9.64%): Declined despite doubling Q4 profit, possibly due to profit booking and margin pressures amid global uncertainties.
- Mazagon Dock (-8%): Fell following a 51% Y-o-Y decline in Q4 net profit, leading to investor concerns over its earnings performance.
- Bharat Dynamics (-6%): Experienced a downturn later in the week, possibly due to market volatility and investor caution in the defence sector.
- NMDC (-3%): Declined amid fluctuations in global commodity prices and investor sentiment in the metals sector.
Wrap-up: Strong earnings and catalysts propelled gainers, while profit booking and disappointing results hit the losers.
Major Stock News of the Week
Several companies made headlines with their Q4 FY25 results and other significant updates.
Strong Performers:
- Gillette India, PC Jeweller, Suzlon Energy, Sobha, Triveni Engineering, Aarti Industries, NBCC, Apollo Hospitals, Senco
Underperformers:
- Cummins India, Ola Electric, Mazagon Dock, NMDC, Bharat Dynamics, Nestle India, Bajaj
Wrap-up: Stock-specific news and earnings reports were key drivers of market volatility.
FII and DII Activity: DIIs Provide Strong Buffer
Institutional investor behaviour displayed a sharp divergence this week.
Foreign Institutional Investors (FIIs):
- Turned to net selling by week-
- On 30th May 2025, net outflow of ₹6,449.70 crore in the cash
Domestic Institutional Investors (DIIs):
- Maintained consistent net
- On 30th May 2025, net inflow of ₹9,095.90 crore in the cash
Wrap-up: Strong DII participation helped absorb FII outflows, cushioning the market from sharper declines.
Other Factors Influencing the Market
Broader macroeconomic and global cues continued to shape market sentiment.
- RBI Rate Cut: Central bank reduced repo rate by 25 bps to support
- Easing Inflation: Lower CPI and CFPI numbers supported an accommodative
- Stable Crude Prices: Expectations of steady oil prices added a layer of
- US Fed Stance: Investors tracked Fed commentary for future policy
- Geopolitical Climate: India retained relative attractiveness amid global
Wrap-up: A mix of policy moves and global factors contributed to the cautious market mood.
Outlook for the Week Ahead (Starting 2 June)
Markets are expected to focus on economic data releases, earnings, and technical levels in the upcoming week.
- Economic Data: RBI Monetary Policy Committee (MPC) announcements and May CPI inflation
- Earnings: Final batch of Q4 FY25 results to be
Wrap-up: Market sentiment will likely remain selective and cautious as participants watch for fresh cues.
Final Takeaway
The Indian stock market ended the week under cautious pressure from a mix of global and domestic signals. While benchmark indices declined, PSU Banks and Metals outperformed, offering bright spots. Domestic institutional investors played a critical role in stabilising markets amid FII outflows. Heading into next week, investors should stay selective, monitor key economic data, and track the last leg of earnings reports for directional cues.