Weekly Market Review & Top Stocks In Focus For The Week Ended 18th Jul’25

Dalal Street fell for the third straight week as the Nifty and the Sensex were down 1% each though midcaps outperformed the blue chips. On the sectoral front, Financials, IT Services stocks declined the most. 

Markets continue to remain in that 300-350 points range with 25000 acting as support on downside and 25300 as upside resistance. However this 25000 level was breached on Friday as some of the heavyweight stocks on the indices were down post results and that weighed it down. Markets do witness good buying interest but it is important to note that we have been in a range since quite a long time now and it seems patience is the key amid lack of triggers and direction. Looking at the way midcaps have behaved it seems they are starting to perform after 5 weeks of sideways move and Q1 earnings will set the tone going ahead.

Just to put things on outlook, we need to understand that on a short term basis the market is lacking any positive triggers as most of the positive triggers like cooling inflation, rate cut, stable macro indicators, improving monsoon outlook and rural demand recovery are known and these triggers we believe are priced in on a short term basis. 

Coming to valuations, it’s neither cheap nor expensive either for mid & small caps as well as large caps and therefore we are not expecting any runaway rally or major upmove but yes as mentioned at the start the stock specific and sector rotation continues to happen.

At the same time, we have to remember that the global cues will keep our markets under radar whether it’s around trade tariffs, crude, geo-political tensions or foreign institution flows. So it’s going to be a range bound market but the positive thing over here is the buying on dips strategy continues as macro internals are much more stable.

If we gauge the market mood index it is now into the Fear territory and technically the Nifty RSI is near 40, we have seen Nifty bouncing from 50-EMA  and daily super trends. Over the weekend we have major results coming in from the Nifty 50 pack and at the same time the FIIs are 80% short on index futures, and we believe any surprise will have a good rally from here. Let’s see how it plays out and with this let’s begin our weekly market review. 

How Did the Markets Fare Last Week?

On a weekly basis ended on Friday, the Indian benchmark indices ended in red. Sensex and Nifty were down close to 1% each while Midcaps outperformed and were up 1% during the week.

What Might Keep the Markets Busy Into the Next Week?

Investors will be busy monitoring the earnings and management commentary on outlook as a whole lot of India Inc. will be coming out with their Q1FY26 numbers. Furthermore, any discussion / progress on India-US trade negotiations and President Trump’s tariffs implementation on countries and its impact will be monitored very closely.

Coming to data points, on the domestic front we have the HSBC Composite/Manufacturing/Services PMI as well as Foreign Exchange Reserves while globally we have Michigan Consumer Expectation Index, Existing Home Sales data, S&P Global Manufacturing/Services PMI and Initial Jobless Claims etc. All of these will keep markets busy. 

Crude and FII Flows

Brent Crude Oil Prices remained steady at $68.79/bbl supported by stronger-than-expected economic data from the world’s top oil consumers and signs of easing trade tensions. On the other hand, FIIs turned Net Sellers for the week.

Sector in Focus

Pharma, Realty & PSU Banks remained in focus during the week.

Stocks That Remained in Focus During The Week

Wipro:

• Wipro saw a slight uptick in voluntary attrition to 15.1% in Q1FY26, while its total workforce shrank by 114 employees. Revenue for the quarter stood at Rs 22,080 crore, broadly meeting consensus estimates, with EBIT rising 0.6% QoQ to Rs 3,813 crore. EBIT margins were at 17.3%, a slight dip from Q4 but above expectation. The company expects Q2FY26 revenue growth to remain flat to marginally negative (-1% to +1% in constant currency). At the time of writing; Wipro ADR up 4% after Q1FY25 results meet expectations, healthy deal momentum

Emami:

• The company has entered into an agreement with Cannis Lupus Services India Pvt Ltd, an associate company, engaged in the pet care segment offering Ayurvedic/ herbal remedies for pets under the brand “Fur Ball Story”. This investment is in line with Emami's strategy. At present, Emami Limited holds 9,516 equity shares and 4,348 preference shares in the company. 

JSW Energy:

• JSW Energy faced a setback as the Supreme Court ruled against its subsidiary, JSW Hydro Energy, in a dispute with Himachal Pradesh over free power supply. The court upheld the state's right to receive 18% free power as per the Implementation Agreement, instead of the 13% JSW was providing. JSW Hydro operates two hydro projects in Himachal with a total capacity of 1,391 MW.

CEAT:

• The Board at its meeting held on 17th July 2025 approved capital expenditure at the company's Chennai Plant at Kannanthangal. The existing capacity is about 70 lakhs tyres per annum with capacity utilisation of 80% and the proposed addition is 35% of current capacity PCUV in Chennai. For this, CEAT will be investing Rs 450 crore and will be funded by a mix of internal accruals and debt and the same will be added by FY27. The rationale behind this capacity addition is on the back of good growth is expected in the medium term in the PCUV category. This investment is intended to add capacity progressively, to service the anticipated future demand.

NTPC:

• The Cabinet Committee on Economic Affairs has increased NTPC's investment limit in NTPC Green Energy and its subsidiaries from ₹7,500 crore to ₹20,000 crore for renewable energy projects. This move supports NTPC's goal of achieving 60 GW RE capacity by 2032. The enhanced delegation will accelerate renewable project development and boost reliable power infrastructure across India.

GMR Airports:

• GMR Airports reported resilient traffic in Q1FY26, handling over 30.1 million passengers, a 3.3% YoY increase. Domestic traffic rose by 2.9%, while international traffic grew by 4.6% during the same period. Passenger volumes have consistently remained above 9.7 million per month since November 2024. 

• Notably, Hyderabad Airport recorded its highest-ever passenger traffic and aircraft movements during the quarter, reflecting strong operational momentum. A muted growth in traffic, specifically domestic traffic in Jun’25 & Q1FY26 attributable to temporary disruptions in flight operations caused by changed airspace conditions amid geopolitical events and Runway 10/28 upgradation at Delhi Airport. 

Thirumalai Chemicals:

• In Feb'25, the company shared progress on its US project under TCL Specialties LLC, which will house two integrated plants using shale gas-based n-Butane. The facility will produce Maleic Anhydride for advanced polymers and Malic/Fumaric Acid for the US food market. All plant equipment has arrived, with most installed, and the modular plant—largely built in India—targets completion by Oct–Dec 2025, with production ramp-up in CY26.

HDB Financial Services:

• HDB Financial Services reported a mixed performance in Q1FY26 with 2.4% YoY decline in net profit to Rs 568 crore, despite a 15% rise in revenue to Rs 4,465 crore. Disbursements fell 8% YoY, indicating softer demand, though gross loans rose 14% to Rs 1.1 lakh crore. Net interest income grew 18% with NIM improving to 7.7%. However, asset quality weakened slightly, with gross NPAs increasing to 2.56%.

Tata Consultancy Services:

• Tata Consultancy Services has collaborated with MIT Sloan Management Review (MIT SMR) to launch a new research series to explore the next phase of human and AI collaboration in large enterprises. As enterprises the world over are proactively investing in deploying AI-led solutions to transform their business operations, this multi-sectoral study deeply examines the new paradigms that will redefine the use of AI in global enterprise environments.

Dixon Technologies:

• Dixon Technologies has signed a binding term sheet with Chongqing to form a Joint Venture, pending statutory approvals and definitive agreements. The JV will focus on manufacturing and supplying precision components for laptops, mobile phones, IoT, automotive, and other agreed products in India. Dixon will hold a 74% stake, while Chongqing will hold 26%. This move aims to strengthen domestic electronics manufacturing capabilities.

Closing Thoughts

There Are Years Where Nothing Happens & Then There Are Days Where Years Happen!