Nifty closes May in positive, spurred by strong FPI flows

3 Jun 2025 , 12:04 PM

FPIS DECISIVE BUYERS IN EQUITY AND DEBT IN MAY 2025

After gaining 6.3% in March and 3.5% in April; the Nifty showed gains for third month in a row in May. However, May 2025 gains in Nifty were relatively subdued at 1.7%. However, the FPI sentiments were decisively positive in the month of May. For instance, May 2025 saw FPI infusion of $2,323 Million into equities and $1,297 Million into debt; resulting in overall FPI inflows of $3,620 Million for the month. Reciprocal tariffs are on hold till the first week of July, but clearly Trump is not done with his tariff game, as is evident from his recent decision to double the import tariffs on steel and aluminium from 25% to 50%. All eyes will be focused on the RBI monetary policy and later the Fed policy statement in June 2025.

MOMENTUM RETURNS – NIFTY POSITIVE IN MAY 2025

With Nifty index up 1.71% in May 2025, there were 34 gainers and 16 losers in terms of 1-month returns. While the positive side returns averaged 5.63%, the negative side returns were -4.39%, triggered by FMCG and metal stocks. Here are top-15 on monthly returns.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
BEL	385.20	22.45%	32.32%	393.50	230.00	67.48%	2.11%
ADANIPORTS	1,432.30	17.78%	3.56%	1,621.40	995.65	43.86%	11.66%
TATASTEEL	161.00	14.95%	-1.91%	184.60	122.62	31.30%	12.78%
HEROMOTOCO	4,310.10	12.59%	-16.10%	6,246.25	3,344.00	28.89%	31.00%
TATAMOTORS	718.65	11.68%	-22.13%	1,179.00	535.75	34.14%	39.05%
JIOFIN	286.20	10.07%	-17.57%	368.30	198.65	44.07%	22.29%
LT	3,672.00	10.00%	1.11%	3,963.50	2,965.30	23.83%	7.35%
ADANIENT	2,518.00	9.50%	-21.11%	3,743.90	2,025.00	24.35%	32.74%
TRENT	5,625.00	9.11%	21.33%	8,345.00	4,196.00	34.06%	32.59%
BAJAJ-AUTO	8,599.00	7.19%	-4.03%	12,774.00	7,089.35	21.29%	32.68%
BAJFINANCE	9,142.00	6.32%	38.75%	9,660.00	6,375.70	43.39%	5.36%
DRREDDY	1,251.00	5.68%	-78.70%	1,421.49	1,020.00	22.65%	11.99%
TITAN	3,550.00	5.19%	8.65%	3,867.00	2,925.00	21.37%	8.20%
TECHM	1,573.00	4.72%	26.84%	1,807.70	1,193.65	31.78%	12.98%
SHRIRAMFIN	639.35	4.52%	-72.23%	730.45	438.60	45.77%	12.47%

Data Source: NSE

Which are the sectors that showed momentum in the last one month? The top 15 stocks had 3 Financials, 3 Auto Stocks, 2 Consumer stocks and 2 Engineering stocks. The rate cut in February and April and expectations of another rate cut in June, kept financials in action. However, the top stocks in this list were largely sector agnostic. At the bottom were the pharma stocks due to US uncertainty, and consumer facing stocks due to demand issues.

LONGER TERM RETURNS – NIFTY STORY FOR YEAR TO MAY 2025

With Nifty index 1-Year returns improving to 10.06% in May 2025, there were 27 gainers and 23 losers. While the positive side returns were 19.43%, the negative side were -13.80%. Here are the top-15 on Annual Returns.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
HDFCLIFE	776.25	4.46%	41.05%	791.10	511.40	51.79%	1.88%
BAJFINANCE	9,142.00	6.32%	38.75%	9,660.00	6,375.70	43.39%	5.36%
BHARTIARTL	1,859.70	-0.45%	34.79%	1,917.00	1,219.05	52.55%	2.99%
BAJAJFINSV	2,011.50	3.37%	32.37%	2,135.00	1,419.05	41.75%	5.78%
BEL	385.20	22.45%	32.32%	393.50	230.00	67.48%	2.11%
SBILIFE	1,809.00	2.63%	31.31%	1,936.00	1,307.70	38.33%	6.56%
ICICIBANK	1,446.10	1.32%	29.82%	1,471.60	1,051.05	37.59%	1.73%
HDFCBANK	1,941.50	1.03%	28.39%	1,978.90	1,454.00	33.53%	1.89%
TECHM	1,573.00	4.72%	26.84%	1,807.70	1,193.65	31.78%	12.98%
HCLTECH	1,631.50	4.41%	22.88%	2,012.20	1,235.00	32.11%	18.92%
KOTAKBANK	2,077.30	-6.04%	22.76%	2,301.90	1,602.45	29.63%	9.76%
TRENT	5,625.00	9.11%	21.33%	8,345.00	4,196.00	34.06%	32.59%
M&M	2,971.00	1.64%	19.38%	3,270.95	2,425.00	22.52%	9.17%
APOLLOHOSP	6,886.00	-1.38%	19.32%	7,545.35	5,693.20	20.95%	8.74%
SUNPHARMA	1,674.90	-8.44%	14.97%	1,960.35	1,377.20	21.62%	14.56%

Data Source: NSE

Which Nifty stock segments showed best long term returns? The top 15 stocks by 1-year returns had 7 BFSI companies, 2 Healthcare stocks, and 2 Tech plays. If you look at the bottom 15, Reliance Industries saw the deepest cuts in the year; but others like IndusInd Bank, Wipro, Tata Motors, and Asian Paints also saw deep losses in the year. In the last couple of months, the recovery in markets was driven by the domestic stories.

NIFTY RESILIENCE STILL CONSTRAINED AS OF MAY 2025

A proxy for resilience is the extent of bounce from the 52-Week lows. For the Nifty index, the bounce from the low of the year improved to 13.83%. Out of 50 stocks in the Nifty, 9 stocks bounced over 40% from the lows. A total of 18 stocks have bounced more than 30% and 33 stocks bounced more than 20%, from the lows of the year.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
BEL	385.20	22.45%	32.32%	393.50	230.00	67.48%	2.11%
ETERNAL	239.75	2.49%	13.42%	304.70	146.30	63.88%	21.32%
BHARTIARTL	1,859.70	-0.45%	34.79%	1,917.00	1,219.05	52.55%	2.99%
HDFCLIFE	776.25	4.46%	41.05%	791.10	511.40	51.79%	1.88%
SHRIRAMFIN	639.35	4.52%	-72.23%	730.45	438.60	45.77%	12.47%
JIOFIN	286.20	10.07%	-17.57%	368.30	198.65	44.07%	22.29%
ADANIPORTS	1,432.30	17.78%	3.56%	1,621.40	995.65	43.86%	11.66%
BAJFINANCE	9,142.00	6.32%	38.75%	9,660.00	6,375.70	43.39%	5.36%
BAJAJFINSV	2,011.50	3.37%	32.37%	2,135.00	1,419.05	41.75%	5.78%
SBILIFE	1,809.00	2.63%	31.31%	1,936.00	1,307.70	38.33%	6.56%
ICICIBANK	1,446.10	1.32%	29.82%	1,471.60	1,051.05	37.59%	1.73%
INDUSINDBK	818.45	-2.56%	-43.53%	1,550.00	606.00	35.06%	47.20%
TATAMOTORS	718.65	11.68%	-22.13%	1,179.00	535.75	34.14%	39.05%
TRENT	5,625.00	9.11%	21.33%	8,345.00	4,196.00	34.06%	32.59%
HDFCBANK	1,941.50	1.03%	28.39%	1,978.90	1,454.00	33.53%	1.89%

Data Source: NSE

Which sectors showed best resilience in last 1 year? The top 15 stocks had 9 BFSI stocks and 2 Consumer Plays. If you look at the bottom 15, the strugglers include several marquee defensive stocks like (Asian Paints, Hindustan Unilever, ITC, Cipla, TCS, Nestle etc). Stocks like Eternal (Zomato), Bharti Airtel, and BEL are at the top on multiple counts. The top 10 stocks gave average bounce of 49.29% while the top 20 stocks bounced 41.05% from lows.

SWING STORY – HOW CLOSE ARE NIFTY STOCKS TO YEARLY HIGHS?

Swing measures the distance of the stock price to the yearly high. Lower the gap, higher the swing factor. Nifty swing has improved to 5.81% in May 2025. Out of the 50 stocks in the Nifty, 5 stocks are less than 5% away from their 52-week highs, while a total of 17 stocks are less than 10% away. Swing has actually improved in May 2025.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
ICICIBANK	1,446.10	1.32%	29.82%	1,471.60	1,051.05	37.59%	1.73%
HDFCLIFE	776.25	4.46%	41.05%	791.10	511.40	51.79%	1.88%
HDFCBANK	1,941.50	1.03%	28.39%	1,978.90	1,454.00	33.53%	1.89%
BEL	385.20	22.45%	32.32%	393.50	230.00	67.48%	2.11%
BHARTIARTL	1,859.70	-0.45%	34.79%	1,917.00	1,219.05	52.55%	2.99%
BAJFINANCE	9,142.00	6.32%	38.75%	9,660.00	6,375.70	43.39%	5.36%
BAJAJFINSV	2,011.50	3.37%	32.37%	2,135.00	1,419.05	41.75%	5.78%
SBILIFE	1,809.00	2.63%	31.31%	1,936.00	1,307.70	38.33%	6.56%
LT	3,672.00	10.00%	1.11%	3,963.50	2,965.30	23.83%	7.35%
JSWSTEEL	994.00	-3.52%	12.43%	1,074.90	823.80	20.66%	7.53%
TITAN	3,550.00	5.19%	8.65%	3,867.00	2,925.00	21.37%	8.20%
APOLLOHOSP	6,886.00	-1.38%	19.32%	7,545.35	5,693.20	20.95%	8.74%
M&M	2,971.00	1.64%	19.38%	3,270.95	2,425.00	22.52%	9.17%
EICHERMOT	5,354.00	-4.19%	12.45%	5,906.50	4,253.85	25.86%	9.35%
ULTRACEMCO	11,176.00	-3.70%	13.59%	12,339.00	9,534.95	17.21%	9.43%

Data Source: NSE

Which sectors showed best swing in last 1 year? The top 15 stocks had 6 Financials, 2 Commodity stocks, and 2 Auto stocks.  If you look at the bottom 15 by swing, it was dominated by bottom-up stories like IndusInd Bank, Tata Motors, Asian Paints, Adani Enterprises, Bajaj Auto, Trent, and Hero Motocorp. Autos continue to be under pressure, especially two-wheelers. The top 10 stocks had an average swing of 4.32% while the top 20 stocks averaged 7.04% for May 2025. Clearly, financials appears to be showing the best momentum; with commodities and engineering stocks also chipping in!