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Indian stock markets were subdued on Friday, tracking muted global cues and a reversal in domestic technology stocks. However, strong performances in realty, media, auto, and consumer goods stocks helped limit losses. The Nifty 50 ended with a mild cut of 42 points, to settle at 25,019, while the Sensex fell 200 points to close the session at 82,330. Both indices wrapped up the week with healthy gains of over 4%.

Today, we recommend three stocks: one from the financial services sector, one from the automobile sector, and the other from the auto ancillaries sector. We also analyse the market's performance on Friday to understand what may lie ahead for the stock indices in the coming days.

As the financialization of savings continues to be at a nascent stage, equity just contributes 6.9% of total Indian household assets; thus, we expect a positive outlook for household savings. The company expects household savings will increase from $13 trillion in FY25 to over $125 trillion in the next 25 years. Since alternative investment funding delivers greater yields, the company intends to grow its asset management business over the medium term. In the meantime, the company has developed a product basket in the passive category. The company expects strong growth in the housing finance segment in the next 2 to 3 years in both AUM and profitability.

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The company plans to infuse ₹2,300 crore into Bajaj Auto Credit Ltd by FY26. The company is committed to providing ₹1,000 capex as part of the PLI scheme in a horizon of 5 years and will incur a capex of ₹6-7 billion in FY25-26, mostly towards maintenance activities. It has reported sales of 943,563 units for 2-wheelers and 1,59,371 units in the commercial vehicle segment in Q4 FY25, and April sales stood at 3,17,937 units for 2-wheelers and 47,873 units in the commercial vehicle segment.

Read this | Bajaj Auto eyes market share gains with new electric 3-wheeler lineup

For 9MFY25, the company has reported total revenue of ₹9,786.3 crore, an increase of 11% YoY, and profit after tax of ₹704.6 crore, which surged by 11% for the same period. PAT margins stood at 8%. The company's lithium-ion battery division is expected to bring in ₹550 crores in FY25. With a vast distribution network that includes more than 100,000 points of sale, over 1,000 Power Zone retail locations, 2,000 extensive service hubs, and 23 branches throughout India, they are among the biggest competitors in the market. After the company begins its manufacturing, it anticipates a 20% rise in sales in the tubular lead-acid battery industry, or around ₹1,400+ crore in FY26. The company expects an outflow of ₹1,000 crore for the lead acid and new energy business divisions in the upcoming year, and it wants to invest ₹750 crore in lead acid and new energy businesses. Over the next two to three years, the business plans to invest ₹2,000 crore through ARACT and ₹100-150 crore in Phase I/II of the lead recycling facility at ARCSPL.

On Friday, the markets opened at 25,064 points, marginally higher than Thursday’s closing at 25,062 points. It touched the intraday high of 25,070 points, trading above both 50 DMA and 200 DMA with RSI at 65.29, and closed at 25,019, declining slightly by 42 points, or 0.17%. The BSE Sensex closed at 82,330 points, down by 200 points, or 0.24%. 

Bank Nifty closed flat, down by 0.7 points, or 0.00%, closing at 55,355. During this week, Nifty 50 was up by 4.21%, or 1,012 points, closing above all four EMAs, with an RSI of 61.9. Meanwhile, the Sensex was also up by 3.62%, or 2,876 points.

The Nifty PSE index was up 1.81%, or 177 points, and closed at 9,958 points, with RVNL leading the way by surging 8.86% and closing at ₹409. This upsurge came after the news that RVNL received an LOA from the Central Railway worth ₹115 crore. The Nifty Smallcap 50 index was also among the top-gaining indices, up by 1.66% or 137 points, closing at 8,393 points, with Angel One leading the index by jumping 9.03% and closing at ₹2,800.

The Nifty IT index was among the top losers today, down by 0.84%, or 321 points, and closed at 37,972 points. Stocks such as HCL Technologies and Infosys have been the biggest laggards. HCL Technologies fell 2.13% and closed at ₹1,660. Nifty Service was also among the top losers, down by 0.42%, or 139 points, closing at 32,802 points.

Also read | India may gain from Apple’s Inc exit if it spurs deeper manufacturing push: GTRI

This week, Nifty crossed the 25,000 level. This upsurge came mainly due to the following positive developments that happened during this week, such as the ceasefire agreement between India and Pakistan, the China-US deal easing the tariff tensions, and the zero-tariff from India on the US claim from Trump. Government data released on 13 May showed that India’s retail inflation fell to a nearly six-year low of 3.2% in April, down from 3.34% in March.

Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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