India Market Update – May 2025

Analysis, Halal Investment, Market Analyses, Market News |

Assalamu Alaykum,

Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in India for May. Let’s get started.

Stock market update

May extended the upward momentum for India’s markets, though the gains were more modest compared to April. The BSE SENSEX rose by 1.18%, closing at ₹81,451, while the NIFTY 50 advanced by 1.66%, ending the month at ₹24,750. Continued investor optimism, supported by resilient economic indicators and steady global cues, contributed to the market’s positive performance for a second consecutive month.

  • Abbott India reported a 28% year-on-year increase in its fourth-quarter profit, reaching ₹3.67 billion ($43 million), driven by strong demand for its gastrointestinal and anti-infective medications. Revenue from operations rose 11.5% to ₹16.05 billion for the quarter ended March 31. The company, also known for products like PediaSure, benefited from robust consumer demand across its therapeutic portfolio.
  • Ramco Cements reported a sharp 76% drop in its fourth-quarter adjusted net profit to ₹384.3 million ($4.5 million), impacted by weak cement prices and lower sales volumes during what is typically a strong seasonal quarter. Despite the slump, the company expressed optimism about improving market conditions, noting that average cement prices in South India have risen in the first two months of FY26 and are expected to hold firm amid accelerating capacity additions in the region.
  • Bata India reported a surprising 28% drop in fourth-quarter profit to ₹459.2 million ($5.4 million), falling well short of analysts’ expectations for 5% growth, amid weakening footwear demand. The decline was driven by subdued consumer spending as high living costs continued to pressure household budgets.
  • Metro Brands posted a better-than-expected quarterly profit of ₹947.5 million ($11 million) for the quarter ended March 31, driven by strong demand for premium footwear amid a busy wedding season. While profit was down 39% year on year due to a one-time tax benefit in the prior-year period, it still exceeded analyst expectations of ₹881 million.
  • Sun Pharmaceutical reported a 24% rise in adjusted quarterly profit before exceptional items, reaching ₹36.16 billion (~$421 million) for the March quarter, driven by strong demand in India and for its specialty drugs treating rare diseases. However, one-time restructuring and impairment charges led to a 19% drop in net profit after tax. Domestic sales rose 14% to ₹42.13 billion, while revenue from its high-margin global specialty business grew 8.6% to $295 million.

Top gainer and top loser Halal stocks in India

Economic update

  • A Reuters poll shows the Reserve Bank of India (RBI) is expected to cut its benchmark interest rate by 25 basis points to 5.75% on June 6, marking the third straight cut, with another reduction anticipated in August to bring the rate to 5.50%. The easing is driven by sharply slowing economic growth down to 6.3% from over 9% the previous year and inflation remaining below the RBI’s 4% target. 
  • India’s private sector activity surged in May, with HSBC’s Flash India Composite PMI rising to 61.2the fastest pace in over a year driven by booming services demand despite rising inflation. The services PMI jumped to a 14-month high of 61.2, while manufacturing remained solid at 58.3. Strong domestic and overseas demand led to the quickest growth in new orders since April 2024, defying expectations of a slowdown.
  • India has increased the minimum support price (MSP) for common rice paddy by just 3% to ₹2,369 per 100 kg for the new season, its smallest hike in five years amid efforts to manage overflowing grain stocks following last year’s bumper harvest. The modest rise reflects New Delhi’s balancing act between supporting farmers and controlling surplus.
  • India’s industrial output rose 2.7% year-on-year in April 2025, beating economists’ expectations of 1% growth, according to government data. Manufacturing led the expansion with a 3.4% increase, while electricity generation grew 1.1% and mining output slipped by 0.2%. Among sectors, capital goods production surged 20.3%, signaling strong investment activity, while consumer durables rose 6.4%, reflecting resilient demand.
  • India’s official unemployment rate for individuals aged 15 and above stood at 5.1% in April 2025, according to new monthly labor data from the Ministry of Statistics. This inaugural report marks a shift from the earlier quarterly and annual employment releases. Urban unemployment was reported at 6.5%, while rural areas recorded a lower rate of 4.5%. Though the figure is below the 7.73% estimate by private forecaster CMIE, the two datasets differ in methodology and are not directly comparable.

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