Stock Market Weekly Recap: NIFTY, SENSEX close lower for second week amid US tariff concerns

• On a weekly basis, SENSEX dropped by 628 points, or 0.83%, while NIFTY shed 133 points, or 0.58%.
• Among sectoral indices, NIFTY Metal and Oil & Gas gained up to 5% defying a weak market.
• Shares of Godrej Industries spurted more than 34% this week.

Hey there! We are back with a quick recap of stock markets this week, which were marked by global factors-induced volatility.

Benchmark indices continued the consolidation phase this week, dropping by more than half a percent amid trade war concerns. SENSEX and NIFTY declined 2% last week. Tariff threats by US President Donald Trump kept investors on their toes, leading to profit-taking in large-caps, while broader markets saw bottom-fishing as well. Sectors exposed to the US markets came under pressure, while domestic consumption led to buying in some shares.

Continued selling by Foreign Institutional Investors (FIIs) amid renewed interest in Chinese shares also weighed on the largecaps. Hawkish FOMC minutes suggested the Fed is likely to hold rates for some time amid threats of tariffs stoking up inflation and derailing global growth trajectory.

Amid the worries of reciprocal tariffs, SENSEX and NIFTY started the week on a firm note and eked out gains in a range-bound session on Monday. Buying in pharma, metal and energy supported the uptrend, helping indices to end their eight-day slide, which was the longest in the past two years. IT and auto shares declined. Midcap and smallcap indices also edged higher.

SENSEX and NIFTY fell for the third day on Thursday on fresh US tariff threats against India and weak Asian markets. SENSEX dropped 203.22 points to 75,735.96 and NIFTY dipped 19.75 points to 22,913.15 as HDFC Bank, ITC, ICICI Bank, and Maruti declined.

Broader markets, however, bucked the trend with midcap and smallcap gaining over 1%, giving some respite from the ongoing consolidation phase.

Benchmark SENSEX and NIFTY declined on Friday, losing over half a percent due to selling in auto and pharma shares. SENSEX dropped 424.90 points to end at 75,311.06. NIFTY declined 117.25 points to 22,795.90. On a weekly basis, SENSEX dropped by 628 points, or 0.83%, while NIFTY shed 133 points, or 0.58%.

Broader indices stage rebound after sharp correction

Broader midcap and smallcap indices rebounded this week closing higher by up to 2% and outperforming the largecaps. Among midcap shares, Godrej Industries, GlaxoSmithKline, NLC India and Linde India led the recovery while NAVA Ltd, Kalpataru, TVS Holding and PTC India were major smallcap movers.

Top NIFTY50 gainers & losers

Top sectoral gainers & losers

US markets

Commodities (MCX)

Currency gainers/losers (USD, GBP)

Mixed Trend for sectoral indices, NIFTY Metal top gainer

The NIFTY sectoral indices witnessed a mixed trend this week amid volatility in the broader market. While most of the major sectoral indices traded in the negative territory, three indices showed resilience in a weak market. Out of the 10 major sectoral indices, 3 gained, while five declined and two remained flat. NIFTY Metal was the top gainer among the sectoral indices by rising more than 5% despite a weak market. NIFTY Oil and Gas and Realty gained 2.25% and 1.56%, respectively, on a weekly basis. On the other hand, NIFTY Auto was the top loser by declining up to 2.55%.

Godrej Industries share jump over 34% in five-day rally

Shares of Godrej Industries spurted more than 34% this week, largely driven by a five-day rally to Friday to emerge as a major gainer among NIFTY midcap shares. The midcap stock jumped 17% on Thursday followed by a nearly 5% rise on Friday. The company last week reported a nearly 77% jump in net profit to ₹188 crore and a 32% rise in revenue to ₹4,825 crore in the third quarter compared to the year-ago period.

Aegis Logistics gain nearly 5% this week

Shares of Aegis Logistics advanced up to 20% on Wednesday before closing the day higher by over 12% on the NSE. The rally came after 4 straight days of decline. The stock closed the week higher by nearly 5%. The company posted a 5% rise in net profit and 9% year-on-year rise in revenue, last week.

Nava Ltd shares rise 13% after board approval for share buyback

Shares of ferroalloy producer NAVA Ltd. gained up to 17% on Wednesday after its board approved a share buyback of 72 lakh shares, representing up to 2.48% of the shareholding at a price of ₹500 per share. The small-cap stock jumped to a high of ₹429.7 before closing the day 11% up at ₹420 on the NSE. NAVA shares have skyrocketed over 1,000% in the last five years.

What lies ahead?

Stock markets are likely to witness high volatility in the holiday-shortened week starting Monday due to monthly expiry. While tariff worries overhang, FII activity will dictate market trends. With FIIs following the "sell India, buy China" strategy, large caps are likely to remain under pressure. Investors will also watch the upcoming US Core PCE Price Index and India's GDP data for further cues.