Indian stock market: This week’s movements will be determined by the Q4 results, the trade pact between India and the US, tensions between India and Pakistan, and foreign investment flow.
Following a seven-month high, the Indian stock market had a momentary halt on Friday, May 16, as investor confidence was tempered by muted global signals and a steep decline in domestic IT companies.
At 25,019,the Nifty 50 fell 42 points,or 0.17%, to close just above the 25,000 mark,while the Sensex fell 200 points,or 0.24%,to close the day at 82,330. Notwithstanding the day’s decline,both indices saw robust weekly increases of more than 4%.
Investors will keep an eye on a few significant market triggers the following week. Since there aren’t any noteworthy domestic or international events planned, markets will probably look to domestic business results and high-frequency economic data for direction. We will also keep a careful eye on developments in international trade agreements and how they might affect global markets.
Trends in the Indian stock market :
Due to extensive buying in a number of industries and ongoing interest in midcap equities, Indian stock markets ended the week with significant gains. The main indices, the NSE Nifty 50 and the BSE Sensex, both saw weekly gains of about 4%, marking one of their finest recent performances.
After starting the week with strong gains, the benchmark indices briefly slowed down in the middle of the week before accelerating once more in the later half. As a result, the Sensex and Nifty closed at 82,330.59 and 25,019.80, respectively.
With the NIFTY index surging over 900 points on Monday due to reports of a possible ceasefire and a reduction in geopolitical tensions between India and Pakistan, the week got off to a spectacular start. Thursday was one of the more exciting expiries in recent memory, despite modest consolidation in the index during the middle of the week. NIFTY firmly took back the 25,000 threshold, which has not been reached since October 2024. The index closed above 25,000 and increased by more than 4% for the week, indicating fresh bullish momentum.
The following are the main factors that may influence stock markets in the upcoming week:
Q4 profits
With 77 firms scheduled to release their financial results this week, India Inc.’s Q4 FY25 earnings season is already underway. Notable companies to watch include Dr. Reddy’s Laboratories, Reliance Power, Hindustan Petroleum Corporation, Asian Paints, Larsen & Toubro, Titan Company, Mahindra & Mahindra, Asian Paints, Bank of Baroda, BSE, Paytm, Swiggy, Tata Chemicals, MRF, Indian Hotels Company, and Coforge.
IPO Activity: 3 listings, 5 new issues :
With the opening of subscriptions for two new mainboard initial public offerings (IPOs) next week,Borana Weaves Limited and Belrise Industries Limited,the primary market is ready to resume trading. In the meantime,three new small and medium-sized business (SME) initial public offerings (IPOs) will open in the market next week.
FII Activity Up till May 16, 2025, Foreign Institutional Investors (FIIs) have invested a total of ₹23,778 crore in Indian stocks, continuing their strong buying pace. This comes after a major change in policy in April, when FIIs stopped selling and reported net inflows of ₹4,243 crore.
“FIIs who sold equity for ₹116574 crores in the first three months of 2025 became buyers in April, purchasing ₹4243 crores worth of equity.” With large purchases totaling 23778 crores through May 16th, the shift in FII strategy from selling to buying increased in May. Following the halt in the US-China trade war and the resolution of the India-Pakistan dispute, the investment climate has improved along with the global trade situation.India is predicted to develop at a rate of more than 6% in FY26, but the growth prospects in the US, China, Japan, and the EU remain difficult. Crucially,India’s macrostructure appears sound, with inflation largely under control and the MPC predicted to reduce rates twice or three times more during current rate-cutting cycle. FIIs are probably going to keep making purchases in India in the future. Large capitalization will therefore be robust,according to VK Vijayakumar,Chief Investment Strategist at Geojit Investments Limited.
India-US trade agreement :
Additionally, investors are eagerly awaiting any new developments in the trade agreement between the US and India, which could affect the mood of the stock market the next week.
Prices of crude oil :
With the help of a declining dollar, oil prices have increased marginally to $62.3 per barrel. The possible US-Iran agreement and ongoing uncertainties surrounding global trade and economic development, however, may prevent large rises.
Disclaimer: The sole intention of this story is education. The opinions and suggestions expressed above are not those of bharatbulletin24x7.com, but rather those of individual analysts or broking firms. Before making any financial decisions, we encourage investors to consult with qualified professionals.
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