Mixed sectoral performance for Indian stock markets this week

Mumbai, May 24 The Indian stock markets concluded the week on a subdued note, as investors grappled with global uncertainties and awaited key domestic developments.

The benchmark indices experienced volatility, with the Sensex and Nifty oscillating within a narrow range before closing marginally lower. The Nifty settled at 24,853.15, while the Sensex ended at 81,721.08, reflecting cautious investor sentiment.

According to market watchers, the muted performance was driven by a combination of global and domestic factors.

“On the global front, rising US bond yields and concerns over the United States' mounting debt burden triggered foreign portfolio outflows, putting pressure on emerging markets, including India,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.

Additionally, speculation around favourable developments in the US-China trade deal raised concerns about potential capital outflows or reduced inflows into Indian markets, further denting sentiment.

On the domestic front, mixed corporate earnings and delays in finalising the India-US trade agreement added to the uncertainty, prompting profit-booking and a guarded stance among market participants, he added.

The week saw a mixed sectoral performance. Realty and metal sectors remained top performers for the second consecutive week, while auto, IT, and FMCG sectors edged lower.

Among broader indices, the smallcap segment managed to gain nearly half a percent, whereas the midcap index ended with marginal losses.

On the thematic front, select stocks in the defence space continued to attract buying interest.

According to analysts, expectations of a normal monsoon, which is favourable for agricultural productivity, combined with declining crude oil prices, are likely to keep inflationary pressures subdued.

In the week ahead, market participants will first react to the RBI’s record dividend transfer of Rs 2.7 lakh crore to the government and its implications for fiscal policy.

Additionally, the release of India’s industrial and manufacturing production data for April, scheduled for May 28, along with the Q1 GDP growth figures, will offer insights into the economic recovery trajectory, said experts.

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