Weekly market wrap: SENSEX, NIFTY50 drop 0.5%, defence stocks drag; IndiGo sinks nearly 10%

During the week, market sentiment was shaped by global cues as the US Federal Reserve delivered its third consecutive 25-basis-point rate cut, bringing the lending rate to 3.50–3.75%. However, Fed Chair Jerome Powell signalled the possibility of a pause in the coming months, adding to investor caution.

Concerns also rose after US President Donald Trump hinted at potential new tariffs on Indian rice, underscoring lingering uncertainty in trade talks. Meanwhile, India and the US concluded two days of discussions on a bilateral trade agreement, with investors watching for further progress.

Adding to the cautious mood, the rupee’s slide to record lows weighed on overall market sentiment. The domestic currency slipped to a fresh record low of 90.52 against the US dollar on Friday, weakening by 20 paise. On a provisional basis, the rupee ended the session at an all-time low of 90.42 per dollar, down 10 paise.

On Friday, the Indian stock market closed with gains for the second consecutive session, led by a strong rally in metal, realty and oil and gas stocks amid positive cues from global markets.

Weekly gainers & losers

On the NIFTY50 index, IndiGo operator InterGlobe Aviation was the worst performer of the week, tumbling 9.5%. Asian Paints and Bharat Electronics (BEL) also featured among the top losers, slumping 6.9% and 4.3%, respectively. Hindustan Unilever (HUL) fell 3.3%, while JSW Steel slipped 3.2%, rounding out the list of major decliners.

Shares of IndiGo came under pressure after the airline faced major disruptions in operations during the week.  The crisis was sparked after IndiGo failed to plan for new pilot flying-time regulations, leaving travellers stranded at various destinations. 

On the flip side, Hindalco Industries (3.5%), Grasim Industries (3.5%), Tata Steel (2.9%), Eternal (1.9%), and Titan Company (1.8%) ended as the week’s biggest gainers.

Sectoral watch this week

On the sectoral front, Nifty India Defence (-3%) led the weekly declines, followed by Nifty Media (-1.7%), Nifty FMCG (-1.3%), Nifty IT (-1.1%), and Nifty Realty (-0.7%). Nifty Bank also ended lower, slipping 0.6% for the week.

Bharat Dynamics (-6.8%), Data Patterns (-6.2%), and Mazagon Dock Shipbuilders (-6%) were the major drags on the Nifty India Defence index.

Meanwhile, Nifty Metal and Nifty Oil and Gas were the only gainers, rising 1.9% and 0.2%, respectively, during the week.

How the broader market performed this week

During the week, the broader markets also weakened, with the Nifty Midcap 100 slipping 0.5% and the Nifty Smallcap 100 declining 0.7%.

On the Nifty Midcap 100, Bharat Dynamics (-6.8%), Coforge (-6.4%), Hero MotoCorp (-6.1%), ITC Hotels (-6%) and Mahindra & Mahindra Financial Services (-5.8%) were the main laggards.

On the flip side, Vodafone Idea (7.8%), Swiggy (5.6%) and SRF Limited (-4.8%) were the top gainers.

On the Nifty Smallcap 100, Reliance Power (-8.4%), Data Patterns (-6.2%), Dr Lal Pathlabs (-5.1%), Garden Reach Shipbuilders & Engineers (-4.9%), and Neuland Laboratories (-4.8%) led the losers’ pack.

In contrast, Bandhan Bank (6.8%), Navin Fluorine International (6.1%) and Anant Raj (-4.6%) were the main gainers on the index.