Weekly Recap: RBI Rate Cut Boosts Indian Markets

Liquide -

Weekly Recap

Markets saw a late-week rally, ultimately ending 1.02% higher than last Friday’s closing. 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.

Positive Turn

  • Markets closed the week on a strong note, snapping a two-week losing streak. The Nifty gained 1.02%, largely driven by a sharp rally on Friday.
  • Bank Nifty was the standout performer, hitting a record high with a 1.5% weekly gain. Broader indices outshone frontline benchmarks, with the Mid-Cap index rising 2.8% and the Small-Cap index surging 3.9%.
  • The India VIX also fell sharply by 9%, indicating a significant decline in investor anxiety and a return to market stability.

Market Forces at Play

  • At home, the big talking point on Friday was the RBI’s larger-than-expected 50 bps repo rate cut, injecting liquidity in a system where inflation has moderated and growth has shown signs of slowing. Read more: RBI's 50 bps Repo Rate Cut Sends Markets Soaring
  • On the global front, the Trump administration's 50% tariffs on steel and aluminium took effect last week, triggering mixed reactions across Asian markets.

The Winners

  • The Realty sector delivered a robust 9.5% return over the week, as the RBI's repo rate cut is expected to reduce EMIs, driving housing demand.
  • Among individual stocks, Eternal topped the list, gaining 9.8% after Morgan Stanley singled it out as one of its top picks, citing its strong fundamental business traits.

The Losers

  • HDFC Life was the biggest loser of the week, dropping 2.8% as investors booked profits. The sector, as a whole, has experienced heightened volatility recently.
  • TCS faced mixed brokerage reviews, leading to a 2.2% decline in its stock price. Investors are concerned about the impact of US macroeconomic weakness on its business.

Meanwhile

  • US jobs data showed unemployment holding steady at 4.2% in April, as expected, while non-farm payrolls rose by a stronger-than-expected 139,000 jobs.
  • European consumer sentiment and spending intent saw an uptick in Q2 2025, as Germany's first-quarter GDP growth expanded by 0.4%, revised up from an initial estimate of 0.2%. This marks a rebound from a 0.2% contraction in the previous quarter.

Market Brief

Key Indices
Sectors
Stocks
Other Key Data

Market Outlook

Market Outlook
Sectors To Watch
Stocks in Radar: Jindal Stainless, Vedanta, Poonawalla Fincorp, Ashok Leyland, Sunteck Realty

Our Take

  • Markets wrapped up the week on a strong note, with the RBI rate cut on Friday boosting investor sentiment. The Nifty closed above the 25,000 mark, a key psychological level, after several sessions. Generally, such rallies followed by consolidation often lead to an upward breakout.
  • Based on these factors, we anticipate a bullish trend for the Nifty next week, with the index expected to trade within a range of 24,600 to 25,400.

Discover Investment Opportunities with Liquide

Unlock the potential of informed investing with Liquide, featuring pioneering tools like LiMo, an AI co-pilot for stock investing. Available on both Google Play Store and Apple Appstore, Liquide offers up-to-date market analysis, expert recommendations, and real-time insights to guide your investment decisions. 

Download the Liquide App today and enhance your financial journey with Liquide's cutting-edge features.