Weekly Wrap (Apr 28-May 2): Sensex hits record 80k powered by RIL, Adani Ports; FPI inflows surge but caution prevails

The Indian stock market navigated a week of significant milestones and conflicting signals, ultimately closing the period between April 28 and May 2, 2025, with a largely unchanged stance despite considerable volatility.  

This mixed performance stemmed from a tug-of-war between positive drivers and persistent headwinds. Strong earnings reports from market heavyweights like Reliance Industries, coupled with robust buying from foreign investors and improving global sentiment later in the week, provided upward thrust.

However, these factors were counterbalanced by ongoing geopolitical concerns related to India-Pakistan tensions and cautiousness reflected in profit-booking at higher market levels. The market seemed to grapple with these diverse signals, resulting in consolidation rather than a decisive breakout.

Indices Watch: Sensex Hits New High, Nifty Holds Ground

1. Sensex Performance: The BSE Sensex concluded the week at 80,501.99. While this represented a weekly gain of approximately 1.63% compared to the previous week's close of 79,212.53, the journey was marked by significant volatility. The index achieved a landmark by crossing the 80,000 threshold, even touching an intraday peak of 81,177.93 during Friday's session. Much of the week's gain came early on Monday, April 28th, when the Sensex surged over 1,000 points, propelled by strong corporate results and positive Asian market cues.  
    
2. Nifty Performance: The NSE Nifty 50 index finished the week at 24,346.70, posting a weekly gain of about 1.28% from its previous close of 24,039.35. Despite reaching an intraday high of 24,589.15 during the week, the overall movement was relatively subdued after Monday's strong start. The index managed to close above the crucial 24,300 level. Similar to the Sensex, the Nifty saw its most significant move on Monday with a 1.20% jump, followed by days of marginal gains or losses, indicating consolidation. Friday's session was particularly volatile, with early gains being partially erased by the close.  
    
3. Volatility Check: The market's underlying uncertainty was reflected in the India VIX, the volatility index. It remained elevated, bouncing to around 17.16 during the period, signaling heightened risk perception among traders, likely influenced by the geopolitical situation. The initial momentum seen at the start of the week clearly faded as caution prevailed.  

This Week's Top Stories: Market Movers & Shakers

The ongoing Q4 earnings season and significant corporate announcements heavily influenced stock-specific movements throughout the week.

1. Reliance Leads the Charge: Energy-to-telecom giant Reliance Industries (RIL) played a key role in the market's early-week surge. Its shares rallied significantly after the company reported fourth-quarter financial results that surpassed analyst expectations, driven by robust performance in its retail and digital segments. RIL ended the week with substantial gains, contributing positively to the benchmark indices.  
    
2. Adani Ports Shines: Adani Ports and Special Economic Zone delivered a strong performance, reporting a significant jump in its Q4 consolidated net profit (figures cited as 48-50% Y-o-Y increase) and an improvement in its net debt-to-EBITDA ratio. This robust financial health and positive outlook fueled investor confidence, causing the stock to surge, particularly on Friday where it gained over 4%.  
    
3. Bajaj Finance Bonus: Non-banking financial company Bajaj Finance captured headlines by announcing a 4:1 bonus share issue – its first in nine years – alongside a stock split and dividend declaration. This news generated considerable excitement among investors, making the stock one of Friday's top gainers.  
    
4. Banking & Cement Strength: Positive earnings news also came from the banking and cement sectors. Indian Overseas Bank (IOB) reported a solid 30% year-on-year increase in its Q4 net profit. Similarly, UltraTech Cement posted a near 10% rise in its Q4 net profit and declared a substantial dividend of Rs 77.50 per share, further boosting sentiment in the cement space.  
    
5. Mixed Bag Elsewhere: Not all corporate news was positive. Real estate developer Phoenix Mills saw its stock decline after reporting an 18% drop in consolidated net profit for the March quarter. Food delivery platform Zomato (listed as Eternal) reported a consolidated net profit but also announced the closure of its Zomato Quick and Everyday businesses; despite this mixed news, its stock registered gains. The automobile sector presented a varied picture with companies reporting mixed sales figures for April. While Maruti Suzuki India posted slight growth and TVS Motor saw a rise, Tata Motors and Bajaj Auto reported declines, leading to divergent performance among auto stocks.  
    
6. Other Corporate Actions: The week also saw scheduled corporate actions including interim or final dividends from companies like HCL Technologies, 360 ONE WAM, Tanla Platforms, Vesuvius India, ABB India, Gujarat Intrux, KSB Ltd, and Mold-Tek Packaging. Bonus shares were announced by Captain Technocast, while several companies including GACM Technologies, Lloyds Engineering Works, Growington Ventures, Max India, Bannari Amman Spinning Mills, and Alan Scott Industries had record dates or issue openings/closings for Rights Issues. These diverse corporate developments underscored a market driven significantly by individual company news rather than uniform trends.  

Economic Pulse: FPIs Return, Rupee Rises, Credit Cools

Several key economic developments shaped market sentiment during the week.

• Foreign Investors Pour In: A major positive was the strong return of Foreign Portfolio Investors (FPIs). Data from the National Securities Depository Limited (NSDL) showed FPIs infused over Rs 10,000 crore into Indian equities between April 28 and May 2. This marked a significant turnaround, making April the first month of net positive FPI inflows in 2025. This renewed foreign interest, also seen in the preceding week's $2.04 billion inflow, was partly attributed to the relative underperformance of US assets and a weakening US dollar, making Indian equities more attractive.  
   
• Rupee Strength: Supported by these robust FPI inflows and a generally softer US dollar globally, the Indian Rupee appreciated significantly. It strengthened past the 84.5 per dollar level, reaching its highest point since late 2024.  
   
• Bank Credit Slowdown: On the domestic front, data released by the Reserve Bank of India (RBI) indicated a moderation in bank credit growth. Growth slowed to 12% year-on-year in Fiscal Year 2025, down from 16% in FY24. This cooling was potentially due to earlier regulatory tightening measures by the RBI and a high base effect from the previous year. While strong FPI flows signal external confidence, this domestic indicator suggests a potential area to watch for future economic momentum.  
   
• Gold and Silver: Precious metals attracted attention, especially with the Akshaya Tritiya festival falling during the week. Gold prices saw a notable climb on Friday, May 2nd, boosted by factors including a weaker US dollar and increased buying activity from jewellers.  
   
• Manufacturing PMI: The HSBC Manufacturing Purchasing Managers' Index (PMI) for April was released, indicating continued expansion in the manufacturing sector, although the final figure was revised slightly lower than initial expectations, suggesting stable but perhaps slightly moderating growth.  

Global Cues & Local Risks: Trade Talk Hopes vs. Border Tensions

The Indian market navigated a complex global and local landscape.

• US Economic Data: Key economic data from the United States influenced global sentiment. The US Labor Department's April jobs report showed stronger-than-anticipated job creation, which helped alleviate fears of a sharp economic downturn potentially triggered by trade tariffs. This followed earlier data showing a contraction in US GDP for the first quarter. The release of the US Core PCE Price Index, the Federal Reserve's preferred inflation measure, was also keenly watched. US stock markets reacted positively to the jobs data and renewed hopes for easing trade tensions.  
   
• Trade & Tariffs: Market mood improved globally on signs that the US and China might resume trade discussions, potentially de-escalating tensions. Reports suggested China was assessing a US offer for talks. Additionally, comments from the US President hinting at a "potential" trade deal involving India offered some encouragement. However, the overhang of existing and potential US tariffs continued to be a concern, particularly for export-oriented sectors like auto components and potentially impacting broader economic calculations.  
   
• Geopolitical Overhang: A significant factor restraining the Indian market's potential upside was the persistent tension between India and Pakistan following an incident in Pahalgam, Kashmir. This geopolitical risk was repeatedly cited by market observers as a key reason why the market failed to rally more strongly despite positive FPI flows and supportive global cues. This uncertainty contributed to the market's volatility during the week.  
   
• Oil Prices: Crude oil prices saw modest gains during the week. Prices found support from hopes of easing US-China trade friction but were also capped by broader concerns that ongoing trade disputes could dampen global oil demand.  

Sector Spotlight: IT Recovers, Defence Rallies, FMCG Feels Pressure

Sectoral performance during the week was notably mixed, highlighting the selective nature of the market environment.  

1. IT Sector: The Information Technology (IT) sector, which had been a top performer in the previous week, continued to show signs of recovery. It traded positively on several days, potentially driven by attractive valuations after earlier corrections and renewed hopes that a global economic recovery could benefit Indian IT exporters.  
    
2. Auto Sector: Automobiles had a varied week. After strong gains in the prior week, the sector saw mixed performance driven by the release of April sales data. While stocks like Maruti Suzuki and Tata Motors ended Friday with gains, others like Bajaj Auto, Hero MotoCorp, and Eicher Motors faced selling pressure.  
    
3. Defence Stocks: Companies in the defence sector experienced a significant rally, especially at the beginning of the week. This surge was directly linked to the heightened geopolitical tensions along the border, which fueled expectations of increased government spending on defence.  
    
4. Metals Sector: Metal stocks faced downward pressure during the week. JSW Steel, in particular, was a prominent loser among Nifty constituents, likely impacted by broader concerns about global trade uncertainties, tariffs, and possibly profit-taking after previous gains.  
    
5. FMCG & Consumer Durables: Fast-Moving Consumer Goods (FMCG) and Consumer Durables sectors remained subdued, continuing a trend from the previous week. Concerns about slowing urban consumption and pressure on profit margins, highlighted in recent Q4 earnings reports from major players, likely weighed on these consumer-facing sectors. Realty and Consumer Durables were also noted as lagging sectors during Friday's trading.  
    
6. Banking Sector: The banking space showed a mixed picture. While some public sector banks faced pressure on Friday , certain private banks saw gains driven by specific earnings results or news flow (e.g., IndusInd Bank gained on Friday). The broader macro factor for the sector remains the observed slowdown in overall bank credit growth. The divergence across sectors underscores that market participation was not broad-based, requiring careful sector selection.  

Stock Moves: Adani Ports Surges, JSW Steel Slumps

Individual stock movements were largely dictated by company-specific news and earnings announcements.

Top Gainer Highlight (Adani Ports): Adani Ports & SEZ stood out as a strong performer, especially gaining momentum towards the week's end. Its rally was primarily fueled by the announcement of robust Q4 financial results and an optimistic outlook provided by the company management.  

Top Loser Highlight (JSW Steel): Conversely, JSW Steel experienced significant selling pressure, ranking among the top losers on the Nifty index. This decline likely reflected the overall weakness in the metals sector, ongoing concerns about global trade dynamics impacting demand, and potentially profit-booking by investors.  

Other Notable Movers:

• Reliance Industries: Continued its strong run from the previous week, adding significant gains driven by its better-than-expected Q4 earnings.  
   
• Bajaj Finance: Rallied strongly on Friday after the announcement of its bonus share issue, attracting significant investor interest.  
   
• Auto Stocks: Showed divergence based on sales data and sentiment. Bajaj Auto, Eicher Motors, and Hero MotoCorp were notable losers on Friday. In contrast, Maruti Suzuki and Tata Motors managed to post gains.  
   
• Phoenix Mills: Declined during the week following the release of its Q4 results which showed a drop in net profit.  
   
• Eternal (Zomato): Managed to gain ground despite presenting mixed news in its Q4 update, which included reporting a profit but also shutting down certain business verticals.  

The week clearly demonstrated the impact of company-specific fundamentals and news flow on stock prices, often overshadowing broader market trends.

Looking Ahead: Eyes on Global Cues and Domestic Data

As the market moves into the next week, participants will likely keep a close watch on several developing factors. The ongoing Q4 earnings season will continue to provide stock-specific triggers. Globally, economic data releases from major economies, particularly inflation and growth indicators from the US, will be monitored for their potential impact on central bank policies and investor sentiment.  

Developments related to global trade negotiations, especially between the US and China, will remain crucial. Locally, the geopolitical situation on India's borders will continue to be a key factor influencing market mood and volatility. Investors will be assessing whether the positive momentum from FPI inflows can be sustained and if the benchmark indices can overcome recent resistance levels to establish a clearer upward trend.