📉 Rangebound & Restless: Markets Slide Amid FII Caution, US Trade Uncertainty Looms

📰Daily Market Wrap-Up by Stock Whisperers-May 28

Author

thestock whisperers
May 28, 2025

28-May-2025

📈 Market Overview:

Summary of the Day's Market Performance

Market Overview

  • The Sensex fell 239.31 points (-0.29%) to close at 81,312.32, snapping a two-day winning streak.

  • The Nifty dropped 74.75 points (-0.30%) to 24,752.45, reflecting a range-bound session.

  • Midcap and Smallcap indices outperformed.

  • Nifty FMCG led declines at -1.5%, followed by Auto (-0.7%), Metal (-0.6%), Pharma (-0.6%), and Consumer Durables (-0.5%). PSU Bank and Media gained 1% each.

💸 Market Transactions:

  • Foreign Institutional Investors (FII): Bought ₹4,662.92 crore

  • Domestic Institutional Investors (DII): Bought ₹7,911.99 crore

Strong DII inflows supported the market, but FII caution capped gains.

📊📑 Important Observations and Market Sentiments: Editor Special

  • Markets traded range-bound with a negative bias, driven by lackluster FII support and premium valuations. The end of the 90-day US tariff pause (initially set on April 11) raised concerns over India-US trade relations, adding external risk.

  • Weak European cues and tomorrow’s domestic monthly F&O expiry prompted investors to trim holdings. Domestic positives like an improved monsoon forecast, benign inflation (March CPI at a 5-year low), and stronger Q4 GDP expectations cushioned downside risks, though earnings visibility remains crucial for stability.

  • Investors await the US FOMC meeting minutes (from early May, releasing tomorrow) for hints on interest rate directions, which could influence global sentiment.

❓ DO YOU KNOW?

The 90-day US tariff pause, which ended today, had provided temporary relief from a 26-27% reciprocal rate, but its expiration now raises fears of renewed trade tensions under Trump’s policies.

📰Stock News:

Key Stock Movements and News

  • Top Gainers: HDFC Life, Hindustan Copper, Bharat Electronics, and Jio Financial Services

  • Top Losers: ITC, Nestle India, Titan, and Mahindra & Mahindra

  • ITC plummeted nearly 5% as British American Tobacco planned to sell a 2.3%–2.6% stake via block deals at ₹400/share, an 8% discount, with a deal size of ₹11,600–₹13,500 crore.

  • Tata Steel was in focus after filing a petition in the Delhi High Court for coal mine operation relief, amid positive metal sentiment.

  • LIC rose on strong Q4 FY25 performance and positive insurance sector sentiment.

  • Nestle India, the biggest Nifty 50 loser, fell due to profit-taking in FMCG post-Q4 results.

  • Mahindra & Mahindra declined, dragged by auto sector consolidation despite strong Q4 sales and Ather Energy IPO interest.

  • Diamond Power and Infrastructure saw mixed sentiment after its CFO resigned; financial results were rescheduled to May 30.

  • Vodafone Idea remained under pressure after the Supreme Court rejected its AGR dues plea, weakening telecom sentiment.

  • Adani Ports gained as Motilal Oswal maintained a ‘Buy’ rating with a ₹1,620/share target, indicating a 15% upside.

Your Weekly Stock Markets Rundown: 📊 All Eyes on GDP & Powell: Market Awaits Key Triggers Amid Fading Earnings Buzz

May 26-30, 2025

The week of May 26-30, 2025, marks the end of the Q4 FY25 earnings season, with Nifty recovering to 25,001.15 amid cautious optimism. Global economic challenges persist, with Chinese slowdown, steady US rates, and rising Japanese rates in focus, though easing tariff tensions provide some relief. Key data releases like India’s Q4 GDP, US GDP estimates, and Jerome Powell’s speech will shape market direction. Final earnings from LIC, Bajaj Auto, and Apollo Hospitals, alongside IPO activity, will drive stock-specific action. Opportunities lie in insurance, healthcare, and consumer goods, with Nifty poised for potential upside if it breaks 25,265.

👀Stocks to Focus:

  • ITC: Stake sale impact to monitor.

  • LIC: Insurance sector strength to watch.

  • Adani Ports: Brokerage optimism signals upside.

📝Summary:

Indian markets fell 0.3%, with Nifty at 24,752, as FII caution, premium valuations, and F&O expiry jitters triggered a range-bound session. FMCG and Auto led losses, while PSU Banks gained. Domestic macros offer support, but trade tensions and weak earnings visibility signal volatility—watch FOMC minutes tomorrow!

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Disclaimer: The Stock Whisperers is a media platform providing educational and informational content related to the stock market. We do not offer investment advice, stock recommendations, or tips. Readers should consult a SEBI-registered advisor before making any investment decisions.