Equities End Volatile Week With Modest Gains; Reliance, IT Lead The Way

HIGHLIGHTS

• Railtel Corp shares surge 12% on strong earnings show in Q4FY25
• TCS, Infosys, other IT stocks surge as Cognizant lifts outlook, beats Q1 estimates
• Adani Ports shares gain 5% after March quarter profit jumps 50%
• SML Isuzu share price rises nearly 2% post robust April sales data
• PNB Housing Finance shares rally 4% on reports of Carlyle Group selling entire stake

Indian equity markets ended slightly higher in a volatile session on Thursday, with the Nifty 50 closing near the 24,350 mark, supported by gains in IT, media, and oil & gas stocks. The BSE Sensex closed with modest gains as well, capping a choppy trading week.

The Sensex rose 1.6% this week, while the Nifty 50 advanced 1.2%, reflecting resilience amid mixed global cues and geopolitical tensions. Reliance Industries was the standout performer, rallying 10% during the week — its best week in five years — on the back of strong earnings and renewed investor confidence.

Other top weekly gainers included Adani Ports, IndusInd Bank, Bajaj Finance, and SBI. On the losing side were JSW Steel, Eicher Motors, Bajaj Auto, Hero MotoCorp, and HDFC Life. The broader market lagged, with the BSE Midcap index slipping 0.4%, and the Smallcap index ending flat.

SECTORAL PERFORMANCE 
Sectorally, oil and gas led weekly gains, driven by Reliance. Media, energy, and IT added between 0.3% and 0.7% on the day. Meanwhile, selling was seen in power, metal, telecom, pharma, realty, and consumer durables, with losses ranging from 0.5% to 2%.

Top Gainers	% Change	Top Losers	% Change
NIFTY OIL & GAS	0.73%	NIFTY CONSUMER DURABLES	-1.39%
NIFTY MEDIA	0.49%	NIFTY METAL	-0.74%
NIFTY IT	0.27%	NIFTY PHARMA	-0.67%
NIFTY PSU BANK	0.19%	NIFTY HEALTHCARE INDEX	-0.61%
NIFTY FINANCIAL SERVICES	0.15%	NIFTY REALTY	-0.49%

Indian government bonds yields ended marginally lower on Friday, posting their seventh straight weekly gain, as investor sentiment remained supported by the Reserve Bank of India's ongoing bond purchases and a smooth auction of the new 10-year benchmark paper.

The yield on the existing 10-year gilts closed at 6.3538%, slightly lower than the previous session’s 6.3559%. Over the week, the benchmark yield eased by 1 basis point, extending the 34 basis point drop recorded over the prior six weeks.

A key driver this week was the successful issuance of the new 10-year bond, which was sold for ₹300 billion at a cutoff yield of 6.33%. This security is set to replace the current benchmark in the coming weeks. 

The central bank’s recent announcement of ₹1.25 trillion worth of open market operations for May has also underpinned the bond market, signalling its accommodative stance and intent to manage liquidity proactively.

 

Tenure	Today	Previous
10-year Gilt	6.35%	6.36%
5-year gilt	6.08%	6.08%
5-year OIS	5.59%	5.62%

The Indian rupee ended Friday on a volatile note amid supportive domestic and external cues. While it pared early gains to close marginally lower at 84.51 against the US dollar — down just 2 paise from the previous close — the currency had earlier rallied to an intraday high of 83.76, its strongest level in seven months.

Strong foreign fund inflows and robust domestic macroeconomic data bolstered the rupee during early trade. Investors took heart from record goods and services tax collections in April, which hit ₹2.37 trillion, indicating resilient consumer demand. Additionally, India’s manufacturing PMI surged to a 10-month high, reinforcing confidence in the country’s economic momentum.

The rupee's appreciation was also aided by continued weakness in the US dollar globally, which has been under pressure amid shifting expectations on US interest rates and trade policy uncertainty. Exporters were seen actively selling dollars on Friday, adding to the supply.

However, the domestic currency could not hold on to its early gains, as some market participants turned cautious ahead of the weekend and amid regional geopolitical concerns. Profit-taking near key resistance levels also weighed.

Unit	Today	Previous
Dollar/Rupee	84.51	84.49
Dollar Index	99.55	99.27
1-year Dollar/rupee premium (%)	2.26%	2.30%

OUTLOOK
Equity markets are expected to remain rangebound, with upward bias driven by strong corporate earnings, particularly in oil and gas, and financials. However, market sentiment may remain sensitive to global cues and geopolitical developments. Weakness in metals and potential earnings downgrades from select lenders could cap gains.

Government bonds may extend their bullish undertone, supported by the Reserve Bank of India's dovish policy stance and sustained open market operations. The new 10-year benchmark, issued at a lower-than-expected cutoff yield, signals strong demand. With the RBI committing to large bond purchases through May, yields are expected to remain under downward pressure, barring unexpected inflation surprises.

The Indian rupee, after touching a seven-month high, may stay resilient supported sustained foreign inflows. While geopolitical risks may cause intermittent volatility, the rupee’s underlying trend appears strong.

Key Events & Data Due Monday:

Economic Data

• US April S&P Global Composite PMI
• US April ISM Non-Manufacturing Employment data

Corporate Actions

• Jan-Mar earnings: Mahindra & Mahindra, Bombay Dyeing & Mfg Company,  Capri Global Capital, CCL Products (India), Cigniti Technologies,  Coforge,  Computer Age Management Services,  Davangere Sugar Company, DCM Shriram, Entertainment Network (India),  Hind Rectifiers, Kalyani Steels, Mittal Life Style, Nila Spaces,   Prataap Snacks, Indian Hotels Company, Jammu & Kashmir Bank, Vinyl Chemicals (India), and Zee Media Corporation
• Goodluck India to consider fund raising

Policy Events

• German Buba Mauderer Speaks