Intelligence-Driven Investing, Simplified! 
May 2025

In May, Indian markets surged 12.94% from March lows, India became the fourth-largest economy, signed a Free Trade Agreement (FTA) with the UK, and the RBI declared a record ₹2.70 lakh crore dividend. Major demergers and dividend announcements also kept investors busy.

Let’s take a closer look at everything that shaped the markets this month:

Market Barometer

The Indian equity market surged 12.5% from March lows, with the Nifty 50 crossing 25,000 and the BSE Sensex hitting 82,000. Nifty 50 has delivered a 25-year CAGR of 12.8% in INR and 9.9% in USD, outperforming the S&P 500 (5.9%). DIIs remained net buyers for the 22nd straight month, with FY26TD inflows at $ 7.4 B.

Factor Flow

How Nifty 50’s Factor Scores moved this month

Macro View

Zooming out to key rates, trends, and global moves driving India’s economic story

  • India became the world’s fourth-largest economy in 2025, surpassing Japan with a GDP of $4.187 trillion. Strong growth in services, tech, and domestic demand is fueling its rise.
  • India and the UK signed a Free Trade Agreement, cutting tariffs on 90% of UK goods and 99% of Indian exports, aiming to boost trade by £25.5 billion annually.
  • RBI will pay a record ₹2.70 lakh crore dividend to the government for FY25, 27% higher than last year. This is the highest-ever surplus transfer by the central bank.
  • India’s net FDI fell 96% in FY25 as investors exited via IPOs, but total inflows rose 13.7% to $81B, showing strong global interest continues.
  • India’s April retail inflation eased to 3.16%, the lowest since July 2019, while wholesale inflation dropped to 0.85% due to falling food, fuel, and manufacturing prices.
  • Household equity wealth surged ₹46 lakh crore since FY21, adding ₹25 lakh crore in just the last two years.
  • The U.S. and China agreed to reduce tariffs for 90 days, easing trade tensions. Separately, the U.S. delayed its tariff hike on the EU until July 9.
  • Moody’s downgraded the US credit rating to Aa1 from Aaa, citing rising debt and interest costs. It expects debt to hit 134% of GDP by 2035, with deficits widening.
Sector Radar
Nifty Media 🔼 10.57%Nifty FMCG 🔻 2.11%
Nifty Realty 🔼 9.21%Nifty Pharma 🔻1.08%
Nifty Metal 🔼 6.81%Nifty Healthcare Index 🔻 0.73%

Why? Media rose on digital and ad growth. Metals gained from trade relief. FMCG fell due to rising costs and weak urban demand.

Beyond Expectations

Nifty 50 stocks beating expectations in FY25

  • State Bank of India: FY25 revenue stood at ₹4,90,938 crore — 115% higher than expected (₹2,28,648 crore).
  • Kotak Mahindra Bank Ltd: FY25 revenue came in at ₹65,669 crore — 63% higher than the expected ₹40,370 crore.
  • Mahindra & Mahindra Ltd: FY25 revenue reached ₹1,59,211 crore — 37% higher than the estimated ₹1,16,160 crore.
Market Spotlight

Headlines and hidden trends in the markets

  • Cash market average daily turnover (ADT) crossed ₹1 lakh crore after 4 months.
  • F&O activity rose MoM: Equity futures +13.4%, options +14%.
  • Investor base touched 11.4 crore, with 10.1 lakh new accounts in April.
Risks to Watch

Here’s what could shake market moods ahead

  • India and the US are racing to finalize a trade deal before July to avoid a 26% US tariff, creating volatility in export-focused sectors.
  • US tariff cuts on China may reduce India’s export edge, slow new manufacturing inflows, and pressure margins.
Who Owns the Market?

Tracking India’s Evolving Market Ownership Trends

  • FPI ownership in NSE-listed companies rose to 17.5%, mainly driven by private banks.
  • Domestic Mutual Funds (DMFs) crossed 10.4% ownership, their highest ever, now above direct retail investors.
  • Individual equity ownership (MFs + direct) is at a peak of 18.2%, valued at ₹74.5 lakh crore.
Corporate Moves

The key announcement you shouldn’t miss.

IPO Watch
  • Borana Weaves – An unbleached synthetic grey fabric and polyester yarn, supplying the fashion, home decor, and textile industries from Surat, Gujarat. Subscribed 148.69 x | Issue Price: ₹216
  • Belrise Industries – It makes safety-critical auto parts like chassis, suspension, and exhaust systems for major brands across two and four-wheelers. Subscribed: 43.72 x | Issue Price: ₹90
  • Prostarm Info Systems – Provides power solutions, rooftop solar projects, installations, rentals, maintenance services, and battery disposal across sectors like healthcare, defence, and IT. Subscribed: 97.09 x | Issue Price: ₹95 – ₹105
  • Scoda Tubes – Makes stainless-steel pipes and tubes, supplying industries like oil, gas, power, and pharma across India and 16 countries. Subscribed: 53.75 x | Issue Price: ₹130 – ₹140

That’s a wrap for May!

From sector moves to macro trends and market risks, we’ve covered what mattered.

See you next month. Till then, stay informed and invest intelligently with Share.Market