📉 Weekly Market Recap – Nifty Reclaims 24,850 But Volatility Lingers

Week Ending: May 23, 2025

🔺 Indian Markets Rebound Amid Global Jitters

After a jittery start to the week driven by Moody’s downgrade of U.S. credit and weak global cues, the Indian equity markets mounted a strong comeback.

The Nifty 50 closed at 24,853.15, rising 243 points (+0.99%), while the Sensex ended at 81,721.08, up 769 points (+0.95%).

🔹 India VIX, the market’s fear gauge, ticked up to 17.28 (+0.12%), reflecting persistent caution despite the rebound.

🧾 Key Takeaways: Weekly Performance Snapshot

• Nifty 50: 24,853.15 (+0.99%)
• BSE Sensex: 81,721.08 (+0.95%)
• India VIX: 17.28 (+0.12%)
• INR/USD: ₹85.40 (strengthened 10 paise)

📈 The sharp bounce from the 24,800 zone reinforces this as a crucial support level.

💼 Sectoral Movers & Shakers

🔻 IT Sector: From Headwinds to Hesitation

Indian IT firms initially dragged the index lower, following the U.S. credit downgrade and global tech selloff.
However, bargain hunters stepped in mid-week:

• Infosys: ₹1,557.90 (-2.01%)
• TCS, HCLTech, Wipro also saw moderate recovery by Friday.

With 60–70% of revenue from U.S. clients, Indian IT remains highly sensitive to U.S. macro trends and dollar volatility.

🚀 Autos & PSU Banks Outperform

Amid the broader volatility, auto and PSU banking stocks outshone:

• Bajaj Auto: ₹8,830 (+4.10%)
• Hero MotoCorp: ₹4,384 (+0.89%)
• Power Grid Corp: ₹304.25 (+1.35%)
• Shriram Finance: ₹677.80 (+1.85%)

⚡ Nifty Realty & Pharma See Renewed Buying

Nifty Realty Index jumped +2.2% this week as investors rotated into rate-sensitive sectors amid cooling inflation.
Pharma also held steady, rising 0.5%, driven by defensive buying.

📊 Technical Outlook

Technically, Nifty formed a strong bullish candle by week’s close. Holding above the 24,800–24,850 zone will be key.
On the upside, 25,200 is the next resistance, followed by the all-time high of 25,490.

“Markets are showing signs of a healthy consolidation. If global headwinds stabilize, the next leg of the rally may be led by banks and midcaps.”
— Ajit Mishra, Religare Broking

🌐 Global Risks & India’s Economic Shield

⚠️ U.S. Downgrade Fallout

Moody’s slashed the U.S. rating to Aa1, citing a $36 trillion national debt and fiscal gridlock. This spooked global markets, including India’s export-facing sectors.

Domestic Strength Holding Ground

India remains among the best-positioned emerging markets:

• Retail investor participation remains robust
• FII inflows continue amid China outflows
• Macro stability: low inflation, resilient GDP, strong banking sector

🔮 What to Watch in the Coming Week

• 📊 Q4 earnings from top banks, autos, and FMCG
• 🌦️ Monsoon updates—key for rural demand & agri stocks
• 💹 U.S. Fed commentary on rate trajectory
• 📉 Global market sentiment post-U.S. downgrade

🧠 TheAIBull View: Why This Matters

At TheAIBull, we don’t just track Nifty ticks—we follow the macroeconomic tides, tech disruptions, and global ripple effects that shape your investment decisions.

This week’s bounce is a classic case of domestic fundamentals clashing with global fears.

Smart investors know that in times like these, clarity is an edge. That’s why we decode signals before the rest of the market catches on.

🔗 Explore deep insights at TheAIBull.com – Because information alone isn’t power—timely insight is.

📌 Stay tuned with India News Network and TheAIBull for your weekly edge in a fast-moving market.