Mumbai— Indian stock markets ended the week on a tepid note as investors weighed global uncertainties and awaited key domestic cues. Both benchmark indices—Sensex and Nifty—remained range-bound throughout the week before closing slightly lower.
The Nifty ended at 24,853.15, while the Sensex closed at 81,721.08, reflecting cautious investor sentiment amid heightened volatility.
Analysts attributed the subdued performance to a combination of global and domestic pressures.
“Rising U.S. bond yields and growing concerns over America’s ballooning debt have triggered foreign portfolio outflows, putting pressure on emerging markets, including India,” said Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd.
Adding to investor apprehension were renewed speculations over progress in the U.S.-China trade agreement, which raised fears of potential capital flight or reduced foreign inflows into Indian equities.
Domestically, mixed corporate earnings and delays in finalizing the India-U.S. trade agreement further fueled uncertainty, leading to profit-booking and a more defensive stance by market participants, Mishra added.
Sectoral performance remained mixed through the week. Real estate and metal stocks extended their rally for a second straight week, while auto, IT, and FMCG sectors faced selling pressure.
Among broader indices, small-caps posted modest gains of around 0.5 percent, whereas mid-cap stocks registered slight declines. Select defence sector stocks also continued to draw investor interest, supported by strong fundamentals and policy tailwinds.
Analysts noted that expectations of a normal monsoon and falling crude oil prices could help keep inflation in check in the coming months, offering some relief to markets.
Looking ahead, investors will closely monitor the implications of the Reserve Bank of India’s record ₹2.7 lakh crore dividend transfer to the government, which could shape fiscal dynamics.
Additionally, market sentiment will be influenced by key economic data releases next week, including industrial and manufacturing production figures for April, due May 28, as well as the first-quarter GDP numbers, which will provide clearer insight into the pace of India’s economic recovery. (Source: IANS)
