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Table of Contents
Market Performance & Key Trends
In this weekly market overview, we shall take a look at the factors that moved the market. The market remained highly volatile throughout the week. Foreign Institutional Investors (FIIs) were net sellers, while Domestic Institutional Investors (DIIs) were net buyers across all trading sessions. Since the onset of Operation Sindoor, PSU defence stocks have surged, becoming the top performers of the week. Almost every defence PSU stock has witnessed substantial gains, along with private defence-related companies, as investors anticipate increased government spending to replenish stockpiles.
Geopolitical Developments Impacting Markets
The Trump administration’s trade stance continued to affect sentiment in India and China. A notable statement from President Trump in Qatar suggested he had urged Tim Cook not to manufacture Apple products in India for the U.S. market, a sentiment reiterated multiple times during the week.
Top Gainers & Losers of the Week
Top Weekly Gainers
The biggest gainers emerged across multiple sectors, with notable spikes in volume and earnings results driving price increases.
- Tata Teleservices (Maharashtra) (+27%) – There was a sudden volume surge, despite its Q4FY25 results being declared in April. Exchanges have sought clarification.
- Honasa Consumer Ltd (+26%) – Strong market response to FY26 guidance, despite neutral Q4FY25 results.
- Emcure Pharmaceuticals Ltd (+21%) – Q4FY25 revenue rose 19%, PAT jumped 64% over Q4FY24. The market responded positively.
- Pfizer (+17%) – Revenue rose 8%, but PAT surged 85% due to asset sales.
- Reliance Power (+15%) – Announced plans for a 500 MW solar park in Bhutan.
- Jubilant Pharmova Ltd (+14%) – Revenue up 10% YoY, PAT at ₹154 crore (vs. ₹59 crore loss in Q4FY24).
- BASF India (+13%) – Increased trading volume, despite weak Q4FY25 earnings last week.
- Garden Reach Shipbuilders & Engineers Ltd (+12%) – A PSU defence stock, gaining traction since Operation Sindoor.
- LT Foods (+11%)
- Graphite India (+11%) – Extraordinarily high trading volume during the week.
Top Weekly Losers
Only a handful of stocks declined due to weak earnings or external financial pressures.
- DOMS Industries Ltd (-11%)
- Dixon Technologies (-10%) – Strong Q4FY25 results, but muted market response to FY26 guidance.
- Sagility India Ltd (-9%) – Positive Q4FY25 earnings, but investor sentiment remained subdued.
- Vodafone Idea Ltd (-8%) – Supreme Court rejected its waiver plea on interest and penalties; total debt now at ₹1.7 lakh crore, including ₹83,000 crore in AGR dues.
- Colgate-Palmolive (India) (-8%) – Disappointing Q4FY25 results weighed on stock performance.
- CreditAccess Grameen Ltd (-7%)
- Force Motors (-7%)
- Emami (-6%)
- Aster DM Healthcare Ltd (-6%)
- Jupiter Wagons Ltd (-6%) – Weak results, rising debt, and declining investor interest in railway stocks.
Month-To-Date (MTD) Performance of Stocks
Top Gainers Among the Top 100 Companies
The PSU defence sector continued to dominate investor interest, alongside select private players.
- Bharat Electronics (+22%)
- IDBI Bank (+18%)
- Tata Steel (+17%)
- Solar Industries India (+17%)
- DLF (+15%)
- Bajaj Holdings & Investment (+15%)
- Adani Ports & SEZ (+15%)
- Mazagon Dock Shipbuilders (+15%)
- Siemens (+13%)
- Union Bank of India (+12%)
Top Losers Among the Top 100 Companies
A few sector-specific stocks saw declines despite positive broader market trends.
- Sun Pharmaceutical Industries (-8%)
- Indus Towers (-6%)
- Kotak Mahindra Bank (-5%)
- REC (-5%)
- Asian Paints (-4%)
- Torrent Pharmaceuticals (-4%)
- Cipla (-4%)
- Eicher Motors (-3%)
- Grasim Industries (-3%)
- NTPC (-3%)
FII & DII Activity During the Week
FIIs continued their selling streak, with net sales of ₹10,016 crore on May 20, 2025. In contrast, DIIs purchased aggressively, net buyers at ₹6,738 crore. On a MTD basis, both FIIs and DIIs have been net buyers, indicating sustained institutional interest.
RBI Dividend & Market Expectations
RBI Dividend Announcement
The Reserve Bank of India (RBI) declared a record ₹2.69 lakh crore dividend for FY25, significantly higher than the ₹2.56 lakh crore projected in the Union Budget for FY25-26.
This surplus stemmed from currency fluctuations, where the RBI made substantial gains from dollar sales to stabilize the rupee.
RBI reported that as of May 16, 2025, total reserves were $685.7 billion, nearly $5 billion less than the previous week. The decline in total reserves was mainly due to falling gold prices during the previous week.
Market Expectations & Fiscal Impact
- Economists now expect India’s fiscal deficit to drop to 4.2% in FY26.
Morgan Stanley projects a 100 basis-point repo rate cut by the RBI to stimulate economic growth and consumption.
Also Read: Performance of IT and ITES Companies in Q4FY25
Also Read: Performance of Banks in Q4FY25
Conclusion
This week witnessed heightened volatility, strong PSU defence stock gains, and institutional investment shifts. With RBI’s record dividend, lower fiscal deficit projections, and potential rate cuts, the market is poised for critical movements in the coming months.
References
- FII and DII trading activity, Money Control
- 2.69 Lakh Crore RBI Dividend Bonanza, Dollar Sales Boost Growth, Free Press Journal
- RBI likely to go for deeper interest rate cuts amid slower growth, low inflation: Morgan Stanley, Economic Times
