The Indian stock markets extended their upward momentum for the third consecutive week, the longest winning streak since December 2024, indicating continued investor confidence despite selective sectoral weakness and midcap underperformance.

Benchmark Indices Post Gains

On the final trading day of the week, Sensex closed 260 points higher at 80,502, while the Nifty settled at 24,347, a modest gain of 13 points. The Nifty Bank also managed to end in the green, up 28 points at 55,115.

This weekly trend reflects a broader pattern of resilience among frontline indices, even as broader market segments such as midcaps lagged behind.

Broader Market Weakness

In contrast to large caps, the Nifty Midcap Index fell by 420 points, nearly 1%, ending the week at 53,705. This underperformance suggests investors leaned toward safety in large-cap stocks, amid mixed quarterly earnings, global cues, and ongoing macroeconomic evaluations.

Oil & Gas Sector Leads with Reliance’s Spectacular Rise

The Oil & Gas sector emerged as the top-performing segment for the week, largely due to a phenomenal 10% weekly rally in Reliance Industries. This was Reliance’s best weekly gain in five years, helping it top the Nifty gainers list.

The stock's rally was driven by strong earnings optimism, energy price trends, and investor accumulation. This performance played a pivotal role in supporting the index, especially amid broader market weakness.

Other strong performers of the week included:

• Maruti Suzuki

• Bharat Electronics

• SBI Life

• IndusInd Bank

• HDFC Life

These stocks contributed significantly to the upward momentum in key sectoral indices, especially in Auto, Insurance, and Banking.

Major Weekly Laggards

On the downside, several notable names pulled the indices lower, particularly in the second half of the week:

• Shriram Finance

• JSW Steel

• UltraTech Cement

• Bajaj Finserv

Among them, JSW Steel dropped 6% on Friday following the Supreme Court’s rejection of Bhushan Power and Steel’s (BPSL) resolution plan, which spooked investors and triggered a sharp sell-off.

Friday’s Market Performance Snapshot

Nifty Auto ended lower after the release of April auto sales data, which was met with a mixed to negative reaction. Bajaj Auto and Eicher Motors slipped 2% each, leading the segment lower.

Indus Towers tumbled 7%, after the company’s board deferred its bonus and buyback announcements, which disappointed the street, especially after its Q4 results.

RailTel, IOC, and Godrej Among Gainers

Some stocks shined on the back of strong quarterly performance or guidance updates:

• RailTel surged nearly 7% post a 46% YoY jump in Q4 profit, indicating robust demand for its services.

• IOC climbed 4% after reporting strong earnings, further boosting confidence in public sector oil majors.

• Godrej Properties rose 4%, despite offering a cautious FY26 guidance, reflecting underlying investor optimism in the real estate sector.

Other Stock-Specific Highlights

• Sona BLW gained 3%, clarifying that only 3% of its revenue is exposed to the newly proposed US tariffs, which calmed investor concerns.

• Eternal (Zomato) ended the session 1% higher, despite posting weaker-than-expected Q4 results, indicating that much of the bad news was already priced in.

Banking Stocks Mixed Ahead of SBI Results

• SBI rose 1% ahead of its quarterly earnings, with market expectations skewing towards positive loan growth and asset quality.

• Kotak Mahindra Bank slipped 1%, with no specific trigger but amid general consolidation in the banking space.

Market Breadth Balanced

Market participation remained balanced throughout the session with an advance-decline ratio of 1:1, showing that while headline indices managed to inch up, stock-specific action was widely scattered.

Key Takeaways

• This week highlighted the strength of frontline indices, led by mega-cap names like Reliance Industries.

• The divergence between large caps and midcaps was significant, underlining risk aversion in smaller names.

• Sector rotation remains evident, with Oil & Gas and Insurance stocks gaining, while Auto and Cement stocks saw selling pressure.

Outlook Ahead

The coming week is expected to bring more stock-specific volatility, with several major companies like SBI announcing earnings. Global cues, especially Fed comments and commodity price movements, will also play a crucial role.

Investors will likely continue to monitor:

• Earnings announcements

• Macro data

• Political developments, especially in the run-up to budget-related discussions

The Upcoming IPOs in this week and coming weeks are Srigee DLM, Manoj Jewellers.

The Current active IPO are Wagons Learning, Kenrik Industries, Arunaya Organics.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

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