Weekly Stock Market Update: Top Stocks, Sector Movers & Expert Outlook

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Weekly Recap

Markets experienced another volatile week, with the Nifty closing 0.67% lower than the previous week. Here's our take on this week gone by, some stories you might have missed out on, and our thoughts on what to do going ahead, in your weekly stock market report.

Whiplash!

  • Despite a strong 1% rally on Friday, equity indices ended the week lower, with the Nifty slipping 0.67% compared to the previous week.
  • Among broader indices, the Nifty MidCap slipped 0.65% while the Nifty SmallCap 100 gained 0.47%.
  • India VIX climbed 4.4%, with notable spikes on Wednesday and early Thursday, reflecting increased market volatility.

What Changed?

  • Last week, US-India trade developments, a resurgence of COVID-19 cases in Asia and Moody’s downgrade of the US credit rating kept investors on edge. Read more: Moody’s Downgrades US Credit Rating: Should Investors Really Worry?
  • India Inc’s earnings and the first major budget bill of the second Trump administration added mixed signals, giving investors much to digest.

The Winners

  • Bharat Electronics rallied 5.4% last week following positive earnings and a target price upgrade from brokerages like Nuvama.
  • HDFC Life reached a lifetime high, rising 4%, driven by strong quarterly growth and an optimistic sector outlook.

The Losers

  • Grasim Industries led the declines, dropping 5.3% amid operational challenges highlighted in its quarterly earnings.
  • The Auto sector faced pressure as ongoing trade talks with the US weighed on sentiment for global automakers.

Meanwhile…

  • The Trump administration’s budget bill, set to significantly increase federal debt and introduce tax cuts for the wealthy, narrowly passed the House, putting downward pressure on stocks.
  • On Friday, President Trump escalated trade tensions between the US and the European Union by threatening to impose 50% tariffs on EU imports starting June 1.
  • Oil prices recorded their first weekly decline in three weeks as OPEC+, a club of petroleum-exporting countries, considered substantial production quota hikes.

Market Brief

Key Indices
Sectors
Stocks
Other Key Data

Market Outlook

Market Outlook
Sectors To Watch
Stocks in Radar: Hindustan Copper, J B Chemicals, Tata Steel, Sundaram Finance, ICICI Prudential, Union Bank

Our Take

  • Although elevated US bond yields could trigger near-term consolidation, India’s strong macro fundamentals and growth trajectory continue to support the market. 
  • We expect the Nifty to trade in a relatively rangebound manner next week, between 24,500 and 25,200. 
  • Investors should stay selective, prioritizing sectors and stocks with strong earnings and positive management guidance.

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