Your Weekly Stock Markets Rundown: 🌪️ After the Storm: 🚀 Nifty Tops 25,000! FIIs Fuel Rally Amid Cooling Inflation & Global Trade Hopes 🌏📊

• Nifty’s Milestone and Dip: The Nifty crossed the 25,000 mark this week, driven by a surge in heavyweight stocks, but fell nearly 200 points on May 16 amid mixed global signals.

• Optimism Returns: Investors are buoyed by a stabilizing environment, with easing inflation, nearing the end of the earnings season, and reduced global tariff tensions as US-China trade talks progress.

• FII Buying Spree: Foreign Institutional Investors (FIIs) purchased stocks worth Rs 5,393 crores, surprising markets and signaling a “Buy India” strategy, though experts warn of stretched valuations.

• Global Markets Mixed: Wall Street ended mixed, with the S&P 500 up 0.41% and the Nasdaq down 0.18%. Asian markets softened, with Japan’s Nikkei down 0.4% after economic contraction, while South Korea’s Kospi edged up 0.09%.

📅 Weekly Events Calendar

💡 DO YOU KNOW?

India’s foreign exchange reserves stood at $686.06 billion as of May 2, 2025, a slight dip from $688.13 billion the prior week, with the latest update for May 9 due on Friday.

Important Observations and Market Sentiments: Editor Special

• FII Momentum: The aggressive FII buying of Rs 5,393 crores signals confidence in India’s growth, but valuations may cap upside potential if the trend continues unchecked.

• US-China Trade Talks: Progress in negotiations has eased global tensions, supporting market stability, though fading optimism in Asia suggests caution.

• India’s PMI Watch: Manufacturing PMI (58.2 in Apr) and Services PMI (58.7 in Apr) flash readings on Thursday will indicate if India’s economic momentum persists.

• US Labor Market: Initial jobless claims dropping to 228,000 show resilience, with Thursday’s update critical for gauging US economic health.

• Earnings Wrap-Up: Results from ITC, Sun Pharma, and JSW Steel will provide final insights into India Inc’s Q4 FY25 performance, shaping sector outlooks.

👀Stocks to Focus:

• Heavyweights: ITC, Sun Pharma, and JSW Steel for earnings-driven movements.

• Consumer Goods: Colgate and Zydus Wellness for domestic consumption trends.

• Industrials: Hindalco and Grasim for industrial sector performance.

• Healthcare: Fortis Health and Mankind Pharma for growth in defensive sectors.

📜 Summary:

The week of May 19-23, 2025, sees the Nifty briefly surpassing 25,000 before retreating, reflecting mixed global cues and valuation concerns despite FIIs’ Rs 5,393 crore buying spree. Easing US-China trade tensions and controlled inflation fuel optimism, but Japan’s economic contraction and fading Asian market gains signal caution. Key data like India’s PMI, US jobless claims, and final Q4 earnings from ITC and Sun Pharma will guide sentiment. Investors should focus on heavyweights and defensive sectors while monitoring global developments for potential volatility.

🚀 Stay cautious, watch key events, and trade wisely!

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