The Indian stock market ended last week on a higher note, supported by favorable domestic cues and global factors, with frontline indices extending their winning streak for a third consecutive week.
The Nifty 50 gained over 0.80% to close at 25,327, while the S&P BSE Sensex advanced 0.90% to 82,626. Markets received a boost early this month from the announcement of GST rate cuts, expected to spur consumption in the economy. The rally was further supported by the resumption of India–US trade talks and strengthened by the US Federal Reserve’s first rate cut of 2025.
These factors also encouraged foreign investors to slow their selling spree, while robust domestic inflows pushed the Indian stock market to a two-month high. Furthermore, expectations of an earnings recovery from the third quarter of the ongoing fiscal have eased investor concerns over rich valuations, which had previously weighed heavily on sentiment.
While large-cap stocks remained steady, mid- and small-cap counters extended their strong momentum on Dalal Street, supported by sustained retail investor interest and improving market sentiment.
According to the Trendlyne data, 47 small-cap stocks from the BSE Small-cap index rallied between 10% and 35.2% last week, with Banco Products (India) leading the pack after surging 35.2% to ₹835.6 apiece. It was followed by IRM Energy, Redington, Sindhu Trade Links, Hi-Tech Pipes, Anant Raj, and John Cockerill India, all of which gained over 20%.
Other notable performers included V2 Retail, Bajaj Consumer Care, Poonawalla Fincorp, Inox Green Energy Services, Hariom Pipe Industries, Exicom Tele-Systems, Netweb Technologies, Prism Johnson, and KPR Mill, which recorded healthy gains in the range of 12–15%.”
H-1B Visa fee hike to impact markets next week
The Indian stock market, particularly tech stocks, is expected to respond to the increase in H-1B visa fees announced by US President Donald Trump. On Friday, Trump signed an executive order requiring companies to pay $100,000 (around ₹88 lakh annually) for every foreign worker under the H-1B visa, up from approximately $1,000 at present—a staggering 9,900% increase.
This hike could raise visa costs to nearly 10% of the profits of India’s five largest H-1B visa recipients and pose a significant challenge to the country’s $283-billion IT services industry.
Mr. Ajit Mishra, SVP, Research, Religare Broking, said, “In the coming week, markets will first react to the US President’s executive order imposing an annual fee of $100,000 on H-1B visas, announced late Friday. While export-driven sectors are already grappling with tariff-related pressures, this move could further weigh on IT services exporters at a sensitive time when trade negotiations remain underway.”
Investors advised to focus on domestic-focused sectors: Expert
Given the mixed backdrop of domestic policy optimism versus global uncertainty, Ajit Mishra recommends a positive yet cautious stance. He advised investors to focus on resilient, domestic-facing sectors, maintain selective exposure, and avoid aggressive long positions until clearer directional signals emerge.
A buy-on-dips strategy remains preferable, he suggested, particularly in cyclical areas such as autos, capital goods, and metals. At the same time, he also noted, defensives like FMCG and pharma should be retained as stabilizers against external volatility.
In the broader markets, he recommended selectivity, with a preference for fundamentally strong mid- and small-cap names. “Traders should closely track foreign fund flows and monitor resistance levels, as leadership from the banking space will be critical to sustaining the ongoing uptrend,” he added.”
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
