Markets Continue to Climb Amid Ongoing Middle East Tensions, Indian Rupee Recovers from Recent Lows
Indian Benchmark Indices End Higher Despite Global Uncertainties
The Indian benchmark indices, the BSE Sensex and the Nifty 50, ended higher in the volatile week ended May 8, despite global uncertainties, rising crude oil prices, and persistent selling by Foreign Institutional Investors (FIIs). The gains were largely driven by sustained buying by Domestic Institutional Investors (DIIs), an appreciation in the rupee, and better-than-expected domestic corporate earnings.
Market Performance
For the week, the BSE Sensex advanced 414.69 points, or 0.53%, to close at 77,328.19, while the Nifty 50 gained 178.6 points, or 0.74%, to settle at 24,176.15. The total market capitalisation of BSE-listed companies jumped more than ₹10 lakh crore during the week.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Company | Market Capitalisation Gain (₹ crore) |
|---|---|
| Mahindra and Mahindra | 1,23,456 |
| Adani Ports and Special Economic Zone | 93,456 |
| HDFC Bank | 82,345 |
| Asian Paints | 65,432 |
| State Bank of India | -45,678 |
| Bharti Airtel | -32,456 |
| Tata Consultancy Services | -21,890 |
Sectoral Performance
The Nifty Smallcap index gained 4% during the week, extending its rally for the fifth consecutive week. The top performers included Firstsource Solutions, Nuvama Wealth Management, Dr Lal PathLabs, Neuland Laboratories, Anant Raj, CreditAccess Grameen, and Wockhardt, which surged between 15% and 28%. On the other hand, Urban Company, Gujarat Mineral Development Corporation (GMDC), Devyani International, Sona BLW Precision Forgings, Aarti Industries, and Brigade Enterprises were among the major laggards during the week.
The Nifty Midcap 100 index advanced 3.5% during the week, extending gains for the second consecutive week and hitting a fresh all-time high. The rally was led by stocks such as Yes Bank, Bharat Heavy Electricals (BHEL), Coforge, Polycab India, Laurus Labs, Dabur India, SRF, and Motilal Oswal Financial Services. On the downside, Oil India, Voltas, LG Electronics India, Lenskart Solutions, Blue Star, and Billionbrains Garage Ventures were among the key laggards during the week.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Rupee Performance
The Indian rupee touched a fresh all-time low of 95.43 during the week but staged a strong recovery to end higher, snapping its three-week losing streak. On Friday, the rupee settled 44 paise stronger at 94.48 against the U.S. dollar, compared to 94.92 in the previous week.
Investor Takeaway
Investors should remain cautious and monitor global uncertainties, but the Indian market's resilience is a positive sign.
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