Indian Market Summary: May 19-23, 2025
The Indian equity markets delivered a stellar performance during the week of May 19-23, 2025, with both Sensex and Nifty gaining nearly 1% to close at multi-week highs. Strong bullish momentum was driven by easing geopolitical tensions and positive global trade developments.
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by RA ALOK DAIYA SEBI Reg. INH000011468, BSE Enlistment No. 5737
Market Overview: Key Drivers
Multiple positive catalysts converged to fuel the week's rally. The ceasefire announcement between India and Pakistan significantly eased regional tensions, while the India VIX plummeted over 20%, reflecting reduced market anxiety.
Positive developments in US-China trade negotiations further bolstered global sentiment. Foreign Institutional Investors turned net buyers in May 2025, providing crucial support. Strong IT sector buying emerged toward week-end, with broader market participation across midcap and smallcap segments.
Monday, May 19, 2025
Markets opened the week with commanding bullish sentiment, establishing a strong foundation for the days ahead. Impressive breadth characterized Monday's session with 2,654 stocks advancing against only 1,233 decliners on BSE.
May 19 marked a crucial turning point for price action validation. Key volatility-based trading windows occurred at 10:10 AM and 1:40 PM, providing opportunities for active traders to capitalize on momentum shifts.
Mid-Week Performance
Tuesday through Thursday saw sustained momentum following Monday's robust opening. Markets maintained their upward trajectory as continued progress on US-China trade talks reinforced investor confidence across global markets.
Trading volumes gradually increased as the week progressed, indicating growing participation. Sector rotation became evident with information technology stocks gaining particular favor among institutional investors. Analysts identified optimal scalping windows at 1:20 PM and 2:30 PM on May 23.
Friday, May 23, 2025
The week concluded on a triumphant note with Sensex surging 769.09 points (0.95%) to close at 81,721.08. Nifty 50 settled just above the 24,850 mark at 24,853.15, advancing 243.45 points (0.99%).
Broader indices participated in the rally with BSE Midcap rising 0.50% to 44,861.42 and Smallcap advancing 0.45% to 51,521.42. Market breadth remained healthy with 2,223 advancing stocks versus 1,476 decliners among 3,894 traded securities.
Top Gainers of the Week
Eternal
Topped the gainers list with nearly 4% surge on Friday's session
Adani Enterprises
Rose approximately 2%, continuing its strong recovery trend
Support Stocks
ITC, Power Grid, Axis Bank, Bajaj Finserv, and Adani Ports provided substantial benchmark support
Top Losers of the Week
Sun Pharma
Major laggard after reporting disappointing 19% YoY drop in Q4 net profit
Bharti Airtel
Ended lower on Friday despite the broader market's strong rally performance
M&M
Among top Nifty losers despite overall positive market sentiment prevailing
Looking Ahead
Nifty stands poised just below the psychologically significant 25,000 mark, setting up potential for further upside. Continued monitoring of global trade developments remains essential for sustained momentum.
Upcoming corporate earnings reports may influence near-term market direction. The emerging IT sector buying momentum suggests potential sector rotation opportunities. Investors will closely watch whether the recent FII buying trend proves sustainable for continued market support.