Indian markets closed higher for the third consecutive week, boosted by strong foreign inflows and upbeat domestic economic indicators. Both the NIFTY50 and SENSEX posted solid gains, with the indices rising 1.2% and 1.6% respectively. Defence, Oil & Gas, and Realty sectors emerged as the biggest winners, while Media, Metals, and FMCG sectors lagged.
This week’s rally came despite geopolitical concerns, particularly rising tensions between India and Pakistan. The broader market sentiment remained positive, with indices maintaining momentum within a wider trading range.
Key economic indicators added to the bullish tone. India’s Index of Industrial Production (IIP) rose to 3.0% in March 2025, up from 2.7% in February, driven by growth in manufacturing and electricity. Meanwhile, net direct tax collections for FY 2024-25 grew 13.57% to over ₹22.26 lakh crore. Though it narrowly missed the ₹22.37 lakh crore target due to record-high refunds, the data still reflects healthy economic activity.
In another positive sign, Goods and Services Tax (GST) collections soared 12% in April, hitting a record ₹2.37 lakh crore. This marked a significant jump from ₹2.10 lakh crore in April of the previous year, signaling robust consumption and business activity.
On the stock performance front, the Nifty rose 307.35 points (1.28%) to close at 24,346.70. Nifty IT gained 329.60 points (0.93%) to 35,891.85, while Bank Nifty added 451.30 points (0.83%) to 55,115.35. The Nifty Mid Cap 100 inched up by 134.90 points (0.25%) to 53,705.10, and Nifty Next 50 edged higher by 114.85 points (0.18%) to 64,429.75.
Top Sectoral Performers:
NIFTY India Defence:
Defence stocks stole the spotlight this week amid rising geopolitical tensions, leading to strong investor interest. Shares of Paras Defence, Garden Reach Shipbuilders, Data Patterns, and Mazagon Dock Shipbuilders surged between 15% and 30%. The NIFTY India Defence index climbed 6% overall.
NIFTY Oil & Gas:
Oil and gas stocks also posted solid gains, driven by optimism surrounding Q4 results. The sector rose 4.4% for the week, with key players like Reliance Industries, Indraprastha Gas, Indian Oil Corporation, and Mahanagar Gas advancing up to 9%.
NIFTY Realty:
The real estate sector saw a 2.6% jump, led by impressive performances from Prestige Estate Projects, Godrej Properties, DLF, and Sobha Ltd. Godrej Properties reported a 93% surge in FY25 net profit to ₹1,389 crore, sparking renewed investor confidence.
Other sectors like Auto, IT, Infrastructure, and Healthcare also logged gains of up to 2%. However, Media, Metals, and FMCG sectors underperformed, with losses of up to 2.5%.
Overall, the market remained upbeat, supported by strong fundamentals and promising sectoral performances, even as investors stayed cautious over global geopolitical developments.