Weekly market update, May 23, 2025

Indian equity markets declined this week due to growing concerns over the U.S. budget proposal. Investor sentiment weakened as the proposed U.S. budget bill, despite including both tax relief and spending cuts, sparked concerns over rising national debt and a potential economic slowdown, driving up the U.S. Treasury yields amid muted demand for long-term bonds. On the weekly basis, the BSE benchmark declined 0.74 per cent, while Nifty dipped 0.66 per cent. The broader markets, the BSE MidCap ended with a loss of 0.32 per cent and the SmallCap rose 0.93 per cent. On sectoral front, it was mixed.

Analysts expect that investors will monitor some key market triggers in the coming week. The last set of March quarter earnings for fiscal 2024-25 (Q4FY25), domestic macroeconomic data, scheduled monthly expiry of May derivatives contracts, foreign fund flows, and global cues will dictate the market trend in the coming week.

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