Indian Stock Markets Deliver Best Weekly Rally Since October 2024
The Indian stock markets delivered their strongest weekly performance in over seven months, with benchmark indices surging over 4% in the week ending May 16.
Mumbai: The Indian stock markets delivered their strongest weekly performance in over seven months, with benchmark indices surging over 4% in the week ending May 16. This marks the best week for equities since early October 2024, driven by broad-based gains across sectors and heightened investor optimism.
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Nifty and Sensex Register Robust Gains
The Nifty 50 index jumped 1,011.80 points, or 4.21%, closing the week at 25,019.80, while the BSE Sensex surged 2,876.12 points, or 3.62%, to settle at 82,330.59. Both indices posted their highest weekly gains since October 4, 2024, indicating strong market momentum and renewed bullish sentiment.
Midcap and Smallcap Indices Outperform
Mid and small-cap stocks led the rally:
- Nifty Midcap 100: ↑ 7.21%
- Nifty Smallcap 100: ↑ 9%
These indices outperformed large-cap stocks, highlighting broad market participation and investor appetite for higher-risk segments.
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Sectoral Rally Led by Defence and Realty
Most sectors closed in the green, with Defence stocks leading the rally:
- Defence: ↑ 17.2%
- Realty: ↑ 10.78%
- Metals: ↑ 9.28%
- Media: ↑ 9.10%
- Public Sector Enterprises: ↑ 7.28%
This sector-wise growth reflects optimism surrounding policy support, infrastructure development, and strong earnings outlooks.
Top Gainers and Losers on Sensex
Top Weekly Gainers:
- Tata Steel: ↑ 10.3%
- Tech Mahindra: ↑ 8.3%
- Eternal (Zomato): ↑ 8.2%
- Adani Ports: ↑ 7.7%
- Bajaj Finserv: ↑ 6.1%
- Maruti Suzuki: ↑ 6.1%
Notable Weekly Losers:
- IndusInd Bank: ↓ 4.6%
- Bharti Airtel: ↓ 1.9%
- Sun Pharma: ↓ 0.6%
Expert View: Bullish Trend to Continue
Nandish Shah, Senior Derivatives and Technical Research Analyst at HDFC Securities, noted:
“Nifty continues to trade above its short-term moving averages, maintaining a bullish trend. The next resistance is seen at 25,207, while support lies around 24,800.”
Friday Recap: Profit Booking in Large Caps
While the week ended strong, Friday saw mixed results:
- Sensex: ↓ 200.15 points (-0.24%)
- Nifty: ↓ 42.30 points (-0.17%)
- Midcap 100: ↑ 0.94% (57,060.50)
- Smallcap 100: ↑ 1.86% (17,560.40)
Profit booking in large caps was offset by continued buying in mid and small-cap segments.
Outlook: Optimism Ahead of Global Cues and Earnings
Investors remain optimistic ahead of upcoming global economic data, corporate earnings, and further cues from RBI policies. Analysts expect the momentum to sustain, especially if macroeconomic conditions remain stable and foreign institutional inflows continue.
