Stock market this week: Top gainers and losers driving market volatility

Market Overview

The benchmark indices ended the week on a cautious note with the BSE Sensex gaining marginally by 0.35%, while the Nifty 50 edged up 0.27%. The broader market remained under pressure, with the Nifty Midcap 100 slipping 1.2% and the Smallcap index falling by 1.8%. The market was weighed down by disappointing corporate earnings from some sectors, profit-booking in high-valuation stocks, and ongoing global uncertainties.

Foreign Institutional Investors (FIIs) turned net sellers, withdrawing over ₹3,200 crore from the equity markets this week, reflecting global risk aversion. Meanwhile, Domestic Institutional Investors (DIIs) provided some cushion with selective buying.

Top Gainers of the Week

1. Larsen & Toubro (L&T)

Weekly gain: +7.1%

Shares of L&T surged following its strong Q1 results and robust order inflows. The engineering giant reported a 17% YoY rise in net profit and a 32% jump in new orders, with management commentary indicating strong infrastructure demand domestically and abroad.

“L&T’s execution capabilities and order pipeline visibility make it a reliable stock in volatile times,” said Abhishek Banerjee, Research Head at Vantage Equity.

2. Hindustan Aeronautics Ltd (HAL)

Weekly gain: +6.4%

HAL extended gains on the back of continued defense sector momentum and rising investor interest in indigenization plays. News of a potential large-scale export deal with Southeast Asia buoyed investor sentiment.

3. ITC Ltd

Weekly gain: +5.9%

Despite overall FMCG sector weakness, ITC gained as analysts turned bullish post-its demerger update and stable cigarette volume growth. Additionally, its hotel business posted strong recovery numbers.

4. Tata Power

Weekly gain: +4.8%

Tata Power rallied as clean energy capacity expansion updates and stable Q1 performance drew positive reviews. The management’s reaffirmation of a ₹75,000 crore green capex plan over five years attracted ESG-focused funds.

5. Cipla

Weekly gain: +4.1%

Cipla climbed following the approval of a key respiratory drug in the US and speculation around strategic stake sale to a global pharma major.

Top Losers of the Week

1. Infosys

Weekly loss: -6.5%

Infosys saw a sharp fall after its Q1 results disappointed the Street with flat revenue growth and a trimmed FY25 revenue guidance. Brokerages slashed price targets, citing persistent client cautiousness in key geographies.

“The IT sector's valuation premium is under pressure. Unless demand visibility improves, upside may remain capped,” said Kritika Mehta, Tech Sector Analyst at MarketScope.

2. Zomato

Weekly loss: -5.9%

Zomato shares declined amid concerns over increasing competition in the food delivery space and recent disclosures around ESOP-related share dilution.

3. Nykaa (FSN E-Commerce)

Weekly loss: -5.3%

The beauty and lifestyle e-retailer continued its downtrend as Q1 margins contracted and the market questioned its profitability trajectory amidst rising ad spends.

4. Jindal Steel & Power

Weekly loss: -4.7%

Despite decent operational performance, Jindal Steel was hammered on account of weakening steel prices in China and global growth slowdown fears.

5. Delta Corp

Weekly loss: -4.5%

Delta Corp’s stock fell after tax notices resurfaced along with a weak Q1 earnings print, leading investors to dump gaming and casino stocks over regulatory uncertainty.

Sectoral Highlights

• Gainers: Capital goods, defense, utilities, and select FMCG stocks performed well. The Nifty PSU Bank index rose 2.1%, led by SBI and Bank of Baroda.

• Laggards: IT, realty, and media stocks remained under pressure. Nifty Realty dropped 3.2% for the week.

Global Market Impact

The global backdrop remained uncertain with persistent concerns over inflation, delayed rate cuts by the US Fed, and geopolitical tensions. The US dollar index gained strength, while crude oil prices remained volatile near $83 per barrel, impacting energy-importing nations like India.

Investors also remained wary of upcoming central bank meetings and fresh macroeconomic data from the US and China that could dictate the short-term trajectory of equity markets globally.

Investor Sentiment & Volatility Index

The India VIX, which measures market volatility, rose by 4.2% during the week to close at 13.87, indicating growing nervousness among traders. Market breadth remained negative on most days, reflecting weakness in broader indices.

Analyst View: What Lies Ahead

Analysts suggest a stock-specific approach going forward, as broader markets may remain choppy.

“We are in a classic stock-picker’s market. The Nifty may move sideways, but opportunities exist in defense, capex-linked themes, and pharma,” said Rahul Shah, Senior Vice President at Motilal Oswal Financial Services.

“Retail investors should avoid bottom-fishing in high-beta stocks until earnings clarity emerges. Defensive sectors can offer short-term stability,” added Mitali Desai, Equity Strategist at Axis Securities.

Investor Outlook

Looking ahead, investors will keenly track:

• The US Fed's policy update

• Monthly F&O expiry

• Further Q1 earnings announcements from major banks, auto, and cement firms

• Crude price movements and the INR/USD trend

For now, consolidation with stock-specific moves seems likely as markets digest macro data, valuations, and corporate performance.