In response to the recent Pahalgam attack, Indian forces launched Operation Sindoor, a targeted strike on terror sites, further intensifying the security situation in the region.

In the week ended on Thursday, 9 May 2025, the S&P BSE Sensex slumped 1,047.52 points or 1.30% to settle at 79,454.47. The Nifty 50 index tanked 338.7 points or 1.39% to settle at 24,008. The BSE Mid-Cap index slipped 1.39% to close at 42,111.50. The BSE Small-Cap index tumbled 1.31% to end at 46,741.95.

Weekly Index Movement:

The key equity benchmarks ended with modest gains on Monday. The S&P BSE Sensex advanced 294.85 points or 0.37% to 80,796.84. The Nifty 50 index added 114.45 points or 0.47% to 24,461.15.

The headline equity benchmarks ended with modest gains on Tuesday. The S&P BSE Sensex advanced 294.85 points or 0.37% to 80,796.84. The Nifty 50 index added 114.45 points or 0.47% to 24,461.15.

The domestic equity benchmarks ended with small gains on Wednesday. The S&P BSE Sensex, rose 105.71 points or 0.13% to 80,746.78. The Nifty 50 index added 34.80 points or 0.14% to 24,414.40.

The domestic equity benchmarks ended with substantial losses on Thursday. The S&P BSE Sensex, slipped 411.97 points or 0.51% to 80,334.81. The Nifty 50 index fell 140.60 points or 0.58% to 24,273.80.

The headline equity benchmarks ended with major losses on Friday. The S&P BSE Sensex, tumbled 880.34 points or 1.10% to 79,454.47. The Nifty 50 index fell 265.80 points or 1.10% to 24,008.

India-Pakistan Tensions Escalate:

Amid rising tensions with Pakistan, India has ramped up security in New Delhi by deploying additional forces and intensifying police surveillance. The move follows India’s successful neutralization of multiple Pakistani drone and missile attacks targeting military sites in Jammu, Pathankot, and Udhampur, along with similar threats in 15 other northern and western locations. No casualties were reported.

A major infiltration attempt along the international border in Samba was also foiled. Meanwhile, Pakistan conducted heavy shelling along the Line of Control in Poonch, Rajouri, Uri, and Chowkibal Kupwara, resulting in property damage and the reported death of a woman in Uri. The developments come in the aftermath of the April 22 Pahalgam terror attack, which claimed 26 lives.

Economy:

India's Goods and Services Tax (GST) collection rose 12.6% year-on-year (YoY) to an all-time high of about Rs 2.37 lakh crore in April. The GST mop-up was Rs 2.10 lakh crore in April 2024 -- the second highest collection ever since GST was rolled out in July 2017. In March 2025, the collection was Rs 1.96 lakh crore.

Meanwhile, India’s foreign exchange reserves (Forex) rose by $1.983 billion to $688.129 billion in the week that ended on April 25, extending gains for the eighth straight week, official data released by the Reserve Bank of India (RBI) this week showed.

The RBI data shows that foreign currency assets (FCAs) witnessed an uptick of $2.168 billion, reaching $580.663 billion. In the reported week, the gold reserves with the RBI declined by $207 million, standing at $84.365 billion.

The Special Drawing Rights (SDRs), which are kept with the International Monetary Fund (IMF), witnessed a rise reaching $18.589 billion, up $21 million in the reporting week. India’s foreign exchange reserves rose $8.310 billion to $686.145 billion in the week that ended on April 18.

The seasonally adjusted HSBC India Services PMI Business Activity Index reached 58.7 in April, up from 58.5 in March, indicating a sharp and stronger expansion in service sector output. The headline figure was above its long-run average of 54.2.

The latest data showed a modest acceleration in growth of aggregate output, as signaled by the HSBC India Composite PMI Output Index rising from 59.5 in March to 59.7. The latest reading was consistent with a sharp rate of expansion that was the strongest since August 2024.

Stocks in Spotlight:

Asian Paints declined 4.41%. The company's consolidated net profit tumbled 44.92% to Rs 1,256.72 crore on 4.27% decline in revenue from operations to Rs 8,329.59 crore in Q4 FY25 over Q4 FY24.

Coal India shed 0.45%. The company's consolidated net profit jumped 12.04% to Rs 9,604.02 crore during the quarter as compared with Rs 8,572.14 crore posted in corresponding quarter last year. Revenue from operations increased 0.31% YoY to Rs 34,156.35 crore in Q4 FY25.

State Bank of India (SBI) slipped 2.58%. The bank’s standalone net profit declined by 9.93% year-on-year (YoY) to Rs 18,642.59 crore in Q4 FY25, compared to Rs 20,698.35 crore reported in Q4 FY24. However, total income increased 12.04% YoY to Rs 1,43,876.06 crore in the quarter ended 31 March 2025.

Meanwhile, the bank’s board has declared a dividend of Rs 15.90 per equity share for the financial year ending 31 March 2025. The record date for determining shareholders eligible to receive the dividend is Friday, 16 May 2025, and the payment date is set for 30 May 2025.

Kotak Mahindra Bank dropped 3.43%. The private lender's standalone net profit fell 14.07% to Rs 3,551.74 crore in Q4 FY25 as against Rs 4,133.30 crore posted in Q4 FY24. However, total income rose 9.33% year on year (YoY) to Rs 16,712.23 crore in the quarter ended 31 March 2025. Meanwhile, the company’s board has recommended a dividend of Rs 2.50 per equity share for the year ended 31 March 2025, subject to approval of shareholders.

Larsen & Toubro rallied 3.49%. The company reported 25% jump in consolidated net profit to Rs 5,497.26 crore on 10.9% increase in net sales to Rs 74,392.28 crore in Q4 FY25 over Q4 FY24.

Britannia Industries added 2.37%. The company consolidated net profit increased 4.02% to Rs 559.95 crore on 8.29% jump in revenue from operations to Rs 4,495.21 crore in Q4 FY25 over Q4 FY24.

Meanwhile, the board of directors recommended a final dividend of Rs 75 per share of face value Re. 1/- each.

MRF gained 2.49%. The company’s consolidated net profit jumped 32.99% to Rs 492.74 crore on an 11.43% rise in net sales to Rs 7,074.82 crore in Q4 FY25 over Q4 FY24.

Meanwhile, the company declared a final dividend of Rs 229 per share for FY25. This comes in addition to the Rs 6 per share interim dividend already paid earlier in the year, bringing the total dividend payout for FY25 to Rs 235 per share. For comparison, MRF had approved a final dividend of Rs 194 per share in FY24.

Titan Company jumped 5.13%. The company’s consolidated net profit jumped 12.97% to Rs 871 crore in Q4 FY25 as compared with Rs 771 crore in Q4 FY24. Revenue from operations increased 23.76% year on year to Rs 13,897 crore in Q4 FY25.

Mahindra & Mahindra added 1.78%. The auto major's standalone net profit surged 21.85% to Rs 2,437.14 crore in Q4 FY25 as against Rs 2,000.07 crore recorded in Q4 FY24. Revenue from operations increased 24.50% year on year (YoY) to Rs 31,353.40 crore in the quarter ended 31 March 2025.

Dabur India declined 3.65%. The company’s consolidated net profit tumbled 8.34% to Rs 312.73 crore in Q4 FY25, compared with Rs 341.22 crore in Q4 FY24. Revenue from operations was at Rs 2,830.14 crore in the fourth quarter of FY25, marginally up 0.55% year on year.

Godrej Consumer Products shed 0.96%. The company has reported 65% increase in consolidated net profit to Rs 432.10 crore on a 6.3% rise in net sales to Rs 3,577.81 crore in Q4 FY25 as compared with Q4 FY24.

Marico gained 3.37%. The company reported a 7.86% jump in consolidated net profit to Rs 343 crore in Q4 FY25 compared with Rs 318 crore in Q4 FY24. Revenue from operations increased 19.84% to Rs 2,730 crore during the quarter as compared with Rs 2,278 crore in Q4 FY24.

Meanwhile the company’s board recommended final dividend of Rs 7 per equity share of Re 1 each, subject to approval of shareholders at the ensuing 37th Annual General Meeting (AGM). The record date was fixed as Friday, 1 August 2025. The said dividend, if approved by shareholders will be paid on or before Sunday, 7 September 2025.

Bombay Dyeing & Manufacturing Company dropped 2.07%. The company’s consolidated net profit tumbled 82.63% to Rs 11.54 crore in Q4 FY25 as against Rs 66.46 crore posted in Q4 FY24. Revenue from operations declined 5.68% year on year to Rs 359.02 crore in the quarter ended 31 March 2025.

Bank of Baroda slumped 11.40%. The bank reported a 3.29% jump in standalone net profit to Rs 5,047.7 crore on 6.14% increase in total income to Rs 35,852 crore in Q4 FY25 over Q4 FY24.

Zee Entertainment Enterprises advanced 9.03%. The company has reported a net profit of Rs 188.4 crore in Q4 FY25, which is significantly higher as compared with the PAT of Rs 13.4 crore recorded in Q4 FY24. Operating revenue rose by 1% year-over-year (YoY) to Rs 2,184.1 crore during the period under review.

Global Markets:

In Europe the Swiss inflation fell to 0% in April compared to the same month a year earlier.

Sweden’s Riksbank held its key interest rate steady, citing uncertainty in the global economy as a direct result of U.S. President Donald Trump’s trade policies. A day earlier, Norway’s central bank Norges Bank also kept interest rates unchanged, noting that “trade barriers have ... become more extensive, and there is uncertainty about future trade policies.”

In China the Caixin Services PMI clocked in at 50.7 for April—a seven-month low and a step down from March’s 51.9. Still above the 50-mark (which separates growth from contraction), but just barely.

The People’s Bank of China will cut the seven-day reverse repurchase rate by 10 basis points to 1.4%, a move expected to lower the loan prime rate by a similar margin. Additionally, the central bank will reduce the reserve requirement ratio by 50 basis points, a step projected to inject approximately $138.6 billion into the financial system.

China exports jumped 8.1% last month in U.S. dollar terms from a year earlier, according to data released by customs authority. Imports slumped by 0.2% in April from a year earlier.