Summary
On May 13, 2025, Indian equity markets saw a sharp pullback after Monday’s historic relief rally, with the BSE Sensex dipping over 900 points and the Nifty 50 sliding nearly 1% amid profit booking and rotation into midcaps and defensives. Volatility eased as geopolitical tensions between India and Pakistan cooled and a U.S.–China trade truce buoyed regional sentiment. Yet, heavyweights in IT and banking underperformed, while midcap and small-cap indices held up, led by defence and shipbuilding names. Investors await key domestic cues, including April inflation data, amid mixed global trends and a stronger rupee.
Market Overview
On Tuesday morning, the BSE Sensex fell by 1.08% to 81,555.06, while the Nifty 50 declined 0.94% to 24,691.60, reversing gains from Monday’s more than 3.8% surge . The downturn was largely driven by profit booking after the biggest single-day rally in over four years, as traders locked in gains from the relief rally sparked by a fragile ceasefire with Pakistan .
Global cues also played a role: a partial U.S.–China trade deal reduced tariffs on both sides, bolstering Asian markets and lifting the Chinese yuan to a six-month high. The Indian rupee is poised to strengthen beyond ₹85/$ as geopolitical risks recede and regional currencies rally .
Sector Performance
Top Gainers
Defence & Shipbuilding: Stocks like Bharat Dynamics saw strong inflows, buoyed by expectations of fresh orders post-conflict .
Pharmaceuticals: Pharma names outperformed broader markets after U.S. drug pricing reforms were milder than feared, with sector gains of 1.7% .
Top Losers
IT & Banking: Heavyweights such as Infosys and HCLTech dragged the indices lower, reflecting profit booking in overnight global tech rallies and concerns over margin pressures .
FMCG & Auto: Defensive consumer stocks underperformed as investors rotated into cyclical and midcap segments .
Midcap & Small-Cap Resilience
While benchmarks pulled back, the Nifty Midcap 150 Index traded 0.60% higher at 20,453.60, underscoring continued appetite for mid-sized growth stories . Top midcap gainers included Bharat Dynamics (+5.8%) and Schaeffler India (+5.12%), while select healthcare and financials stocks outperformed broader markets.
Notable Stock Movers
Krishna Institute of Medical Sciences (KIMS): Shares jumped over 3% after Q4FY25 profit soared 47.2% YoY to ₹106 crore, well ahead of estimates .
Swiggy: The food-delivery platform’s stock plunged 6.4% to a 52-week low as the lock-in period expired, releasing additional promoter shares into the market .
Paytm: Declined nearly 5% following reports of a major stake sale by Ant Financial via block deals .
Investor Outlook
With volatility normalizing, market participants are focusing on:
Domestic Data: April inflation figures scheduled later today will guide RBI policy expectations and bond yields .
Global Developments: Any shifts in U.S.–China trade negotiations or renewed geopolitical flare-ups could sway foreign institutional flows.
Technical Levels: The Nifty must hold the 24,650–24,700 zone to avoid deeper corrections, while a rebound above 24,900 could signal renewed confidence .
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