Nifty Ends Its Longest Weekly Winning Streak of 2025; Closes Below 200-DMA, India VIX Rises for Eighth Straight Session
On Friday, May 9, Indian benchmark indices ended in the red. The Nifty 50 closed down 1.10% at the 24,008 mark, snapping its longest weekly winning streak (three weeks) of 2025 amid heightened volatility as India-Pakistan conflicts intensified. The index also closed below its 200-day moving average. Similarly, the BSE Sensex ended in the red at 79,454, down by 1.10%, marking its second consecutive day of declines.
The indices declined around 1.4% for the week, after rising nearly 7% over the previous three weeks. On May 9, Bank Nifty witnessed its highest intraday fall in the last one month, ending below 53,600 mark.
The drop comes amid heightened geopolitical tensions after the Indian Army reported that Pakistan’s armed forces carried out multiple overnight drone and munitions strikes along the western border, escalating conflict between the two nuclear-powered nations. This marks the third consecutive day of escalating conflict.
Market volatility continued to surge, with the India VIX climbing for the eighth session in a row, reaching its highest point in over a month. Heavyweights like Reliance Industries, ICICI Bank, and HDFC Bank saw losses of 2.12%, 3.25%, and 2.1%, respectively.
Sector-wise, tourism and real estate stocks saw notable declines due to the rising tensions, while defence and drone-related stocks showed gains. Drone-related manufacturers, Ideaforge Technology, Droneacharya Aerial Innovations, Paras Defence, and Zen Technologies surged by as much as 17% on May 9, following rising tensions between India and Pakistan.
Meanwhile, the Association of Mutual Funds in India (AMFI) released mutual fund data.
India's equity mutual fund inflows declined for the fourth straight month in April, reaching the lowest level in a year, according to data released by the Association of Mutual Funds in India (AMFI). The net inflows dropped by 3.24% compared to March, totalling ₹24,269.26 crore.
The market faced pressure due to concerns over potential U.S. tariffs, but expectations of India's economic strength and attractive stock valuations helped mitigate the outflow impact. April also marked the 50th consecutive month of net positive equity fund inflows.
Large-cap funds bucked the trend with a 7.75% rise in inflows, touching ₹2,671.46. However, mid-cap and small-cap categories saw a decline, falling by 3% and 2.2% to ₹3,313.98 crore and ₹3999.95 crore, respectively.
Systematic Investment Plan (SIP) contributions continued to grow, climbing 2.7% to an all-time high of ₹26,632 crore. The number of active SIP accounts also increased, reaching 8.38 crore, up from 8.11 crore in March.
The Nifty Realty index plunged nearly 2.38% % today, extending yesterday's loss, emerging as the top-losing sector and touching a 3-week low. Raymond tanked more than 5%, the most among the realty stocks, dragging the Realty index down.
Nifty closed over 1% lower, weighed down by heavyweights like ICICI Bank (-87.48 points) and HDFC Bank (-45.94 points), which more than offset the positive contributions from Larsen & Toubro (+39.14 points) and Titan (+15.88 points).
Out of 17 major sectoral indices, 14 were in the red. Broader market indices were under marginal pressure, with small-cap and mid-cap indices falling by 0.01% and 0.61%, respectively.
As of May 9, 2025, the Indian stock market witnessed negative market breadth. Out of 2,887 stocks traded on the NSE, 1,065 advanced, 1,738 declined, and 84 remained unchanged.
A total of 16 stocks touched their 52-week highs, while 113 hit their 52-week lows. Additionally, 28 stocks were locked in their upper circuits, whereas 110 stocks were in lower circuits.
Disclaimer: The article is for informational purposes only and not investment advice.
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