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Indian markets end passing week with decent gains amid foreign fund inflows
Apr-25-2025

Indian markets ended the passing week with decent gains amid temporary pause on reciprocal tariffs by the U.S. and prospects of negotiations with other countries, which prompted foreign investors to pour money in domestic markets. However, gains remained capped amid heightened geopolitical tensions, following the terror attack in Pahalgam, Jammu & Kashmir.

Some of the major developments during the week are:

Output of eight core industries slows in March: The Ministry of Commerce & Industry in its latest data showed the output of eight key infrastructure sectors slowed down to 3.8% (provisional) in March 2025, as against 6.3% in March 2024, though it was slightly higher than the 3.4% (provisional) in February.

India Composite PMI hits 8-month high in April: HSBC Flash India PMI report showed that India's private sector growth hit an 8-month high in April on buoyant international demand for goods and services. The HSBC Flash India Composite Output Index surged to 60.0 in April from a final reading of 59.5 in March.

IMF lowers India’s growth projection to 6.2% for FY26: The International Monetary Fund (IMF) in its World Economic Outlook (WEO) report for April has lowered growth projection for India to 6.2 per cent for the fiscal year 2025-26 (FY26), from earlier estimated rate of 6.5 per cent.

World Bank lowers India's growth forecast for FY26 by 40 basis points: The World Bank in its latest ‘South Asia Development Update’ has lowered India’s economic growth forecast for 2025-26 by 40 basis points to 6.3 per cent, over global economic weakness and policy uncertainty.

Automobile exports from India rise in FY25: SIAM has stated that automobile exports from India rose by 19 per cent to over 53 lakh units in the last 2024-25 fiscal year driven by robust demand for passenger vehicles, two wheelers and commercial vehicles in the overseas markets.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex surged 659.33 points or 0.84% to 79,212.53 during the week ended April 25, 2025. The BSE Midcap index gained 548.23 points or 1.31% to 42,528.71 and Smallcap index surged 58.96 points or 0.12% to 48,005.62. On the sectoral front, S&P BSE Information Technology was up by 1,933.85 points or 5.87% to 34,880.35, S&P BSE TECK was up by 481.86 points or  2.89% to 17,147.58 and S&P BSE Auto was up by 1,341.38 points or 2.80% to 49,250.85 were the top gainers, while S&P BSE PSU was down by 106.25 points or 0.57% to 18,535.58, S&P BSE Power was down by 31.26 points or 0.47% to 6,689.17 and S&P BSE Consumer Durables was down by 123.12 points or 0.22% to 56,995.62 were the top losers on the BSE.

NSE movement for the week

The Nifty surged 187.70 points or 0.79% to 24,039.35. On the National Stock Exchange (NSE), Nifty IT was up by 2189.90 points or 6.56% to 35,562.25, Nifty Mid Cap 100 increased 912.40 points or 1.73% to 53,570.20. Bank Nifty was up by 373.85 points or 0.69% to54,664.05, and Nifty Next 50 gained 59.35points or 0.09% to 64,314.90.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net buyers in equity segment in the week, with gross purchases of Rs 85,289.94 crore and gross sales of Rs 67,865.06 crore, leading to a net inflow of Rs 17,424.88 crore.  They also stood as net sellers in the debt segment with gross purchases of Rs 8,672.24 crore against gross sales of Rs 11,621.93 crore, resulting in a net outflow of Rs 2,949.69 crore. In hybrid segment, FIIs stood as net sellers, with gross purchases of Rs 129.49 crore and gross sales of Rs 413.79 crore, leading to a net outflow of Rs 284.30 crore.

Industry and Economy

With an aim to create jobs and drive economic growth, Finance Minister Nirmala Sitharaman has indicated that India is planning to increase the share of the manufacturing sector in country’s GDP from 12 per cent to 23 per cent over the next two decades. She added that India is focusing on 14 identified sunrise sectors like semiconductors, renewable energy components, medical devices, batteries and labour-intensive industries, including leather and textile, further the government had introduced the production-linked incentive (PLI) scheme to promote such sectors, to enhance the share of manufacturing in GDP. Talking about the India’s service sector, the minister highlighted that the service sector contributes 64% in the country’s GDP, exhibiting rapid growth. 

Outlook for the coming week

Indian markets ended the passing week in green fuelled by sustained foreign inflows.  

In the coming holiday truncated week, which marks the start of new month, market-participants would be watching out India Index of Industrial Production (IIP) data, scheduled to be released on April 28. On April 30, investors will be eyeing on Government Budget Value data. Stock markets would be shut for trade on May 1 on account of Maharashtra Day. HSBC Manufacturing PMI Final and Foreign Exchange Reserves are data going to be out on May 02.

In the ongoing result season, traders will be eyeing earnings of prominent companies, including TVS Motor Company, UltraTech Cement, Bajaj Finserv, Bajaj Finance, Bharat Petroleum Corporation, Indian Oil Corporation, Kotak Mahindra Bank and State Bank of India.

On the global front, investors would be eyeing few economic data from world’s largest economy, United States (US), starting from Dallas Fed Manufacturing Index on April 28 followed by Redbook YoY, Dallas Fed Services Index on April 29, GDP Growth Rate, Personal Spending, Chicago PMI on April 30, Initial Jobless Claims, ISM Manufacturing PMI on May 01, Unemployment Rate and Baker Hughes Oil Rig Count on May 02.

Top Gainers 

  • Tech Mahindra up by 11.88% was the top gainer on Nifty for the week - Tech Mahindra reported 71.92% jump in consolidated net profit at Rs 1141.90 crore for fourth quarter ended March 31, 2025 as compared to Rs 664.20 crore for the same quarter in the previous year. Total income of the company increased by 2.35% at Rs 13556.70 crore for Q4FY25 as compared Rs 13244.80 crore for the corresponding quarter previous year.
  • HCL Technologies up by 9.75% was another top gainer on Nifty for the week - HCL Technologies reported 7.86% rise in consolidated net profit at Rs 4,309 crore for fourth quarter ended March 31, 2025 as compared to Rs 3,995 crore for the same quarter in the previous year. Total income of the company increased by 6.16% at Rs 30,695 crore for Q4FY25 as compared Rs 28,915 crore for the corresponding quarter previous year.

Top Losers 

  • Shriram Finance down by 5.28% was the top loser of the week on Nifty - Shriram Finance came under pressure amid reporting lower than expected result for Q4FY25. The company reported 6.06% rise in consolidated net profit at Rs 2,143.77 crore for Q4FY25 as compared to Rs 2,021.28 crore for the corresponding quarter of previous year. Total income increased by 20.66% at Rs 11,460.25 crore for Q4FY25 as compared to Rs 9,497.85 crore for Q4FY24.
  • Adani Ports & SEZ down by 5.27% was another top loser of the week on Nifty - Adani Ports and SEZ traded lower despite it has acquired a coal export terminal in Australia from a group company in a $2.4-billion non-cash deal. The move is aimed at strengthening presence in the Asia-Pacific region. The company has bought Abbot Point Port Holdings (APPH), Singapore, from Carmichael Rail and Port Singapore Holdings Singapore (CRPSHPL).

Technical viewpoints

During the week, CNX Nifty touched the highest level of 24,365.45 on April 25 and lowest level of 23,298.55 on April 17. On the last trading day, the Nifty closed at 24,039.35 with weekly gain of 187.70 points or 0.79 percent. For the coming week, 23,436.78 followed by 22,834.22 are likely to be good support levels for the Nifty, while the index may face resistance at 24,503.68 and further at 24,968.02 levels.

US Market

The U.S. markets traded higher during the week after President Trump appeared to soften his stance on Federal Reserve Chair Jerome Powell. Meanwhile, Treasury Secretary Scott Bessent said there is an opportunity for big deal between U.S. and China.

Some of the major developments during the week are:

U.S. existing home sales plunge in March: Existing home sales plunged by 5.9 percent to an annual rate of 4.02 million in March after surging by 4.4 percent to a revised rate of 4.27 million in February.

Durable goods orders in U.S. spike in March: Durable goods orders shot up by 9.2 percent in March after climbing by a downwardly revised 0.9 percent in February. Street had expected durable goods orders to jump by 2.0 percent.

U.S. weekly jobless claims inch modestly higher: Initial jobless claims crept up to 222,000, an increase of 6,000 from the previous week's revised level of 216,000. Street had expected jobless claims to rise to 221,000.

New home sales in U.S. surge in March: New home sales spiked by 7.4 percent to an annual rate of 724,000 in March after jumping by 3.1 percent to a revised rate of 674,000 in February.

Seven-year note auction attracts below average demand: The Treasury Department announced the results of this month's auction of $44 billion worth of seven-year notes, revealing the sale attracted below average demand.

European Market

European markets garnered gains during the passing week, with signs of easing Sino-U.S. trade tensions and some upbeat corporate earnings helping underpin investor sentiment

Some of the major developments during the week are:

Eurozone trade surplus grows in February: The figures from Eurostat showed that the trade surplus rose to EUR 24.0 billion in February from EUR 21.7 billion in the last year.

Eurozone private sector activity moves closer to stagnation: The HCOB flash composite output index eased to 50.1 in April, which was only slightly above the 50.0 no-change mark.

German Ifo business sentiment strengthens in April: The survey results from the the Munich-based ifo Institute revealed that the ifo business climate index rose to 86.9 points from 86.7 points in March.

UK manufacturing orders improve in April: The total order books unexpectedly rose to -26 percent in April from -29 percent in March.

Italy trade surplus shrinks in February: The statistical office ISTAT reported that the trade surplus dropped to EUR 4.47 billion in February from EUR 6.0 billion in the previous month. 

Asian Market

Asian markets traded higher during passing week amid signs the Trump administration is making progress on trade negotiations and that the U.S. Federal Reserve may cut interest rates earlier than expected, if labor and growth data weaken notably.

Some of the major developments during the week are:

Japan's private sector rebounds with service sector uptick: Japan’s private sector returned to growth in April, with the composite PMI rising to 51.1 from March’s 48.9, according to preliminary data from S&P Global and Jibun Bank.

Core inflation in Japan's capital hits 2-year peak: Core inflation in Japan's capital reached a two-year high of 3.4% in April, complicating the Bank of Japan's efforts to manage rising prices amid pressure from US tariffs.

China holds benchmark lending rates as expected: The People's Bank of China left its interest rates unchanged for the sixth successive session. The one-year loan prime rate (LPR) was kept at 3.1%, while the five-year LPR was unchanged at 3.6%.

IMF slashes China growth forecasts: The IMF said it now believed China's economy will only grow by 4% this year, well below Beijing's official target as it fights a mounting trade war with the US that threatens to hammer the global economy.

China kicks off special bond sale as tariffs threaten economy: China issued the first batch of special sovereign bonds for 2025 as part of the stimulus announced by authorities to soften the blow from simmering trade tensions with the United States.
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