The Nifty Financial Services Index (Finnifty) started May 2025 with a slight uptick. As of May 5, the index showed a month-to-date gain of 0.20%, indicating stable investor sentiment following strong rallies in March and April.
On May 5, Finnifty opened at 26,172.70 and reached a high of 26,287.30 during the day. The index has been trading in a daily range of 26,108.65 to 26,287.30. Its 52-week high currently stands at 26,819.10, while the 52-week low is 20,457.90. The Year-To-Date (YTD) return is a solid 11.29%, reflecting positive momentum in the financial sector.
Several major financial stocks have contributed to Finnifty’s mild rise this month.
These gains suggest that strong private lenders and NBFCs are helping maintain momentum, even amid broader market caution.
However, the gains were partially offset by some key laggards:
This mixed performance highlights that while private players are rising, public sector and insurance firms are facing selling pressure.
May has historically been a positive month for Finnifty, with an average return of 2.06%. So far in May 2025, the returns are lower than average but remain positive, indicating cautious optimism among investors. The previous two months, March and April, saw sharp gains of 8.88% and 4.14%, setting high expectations.
Investor sentiment in May appears cautious as recent earnings from key banking players show a mixed picture. State Bank of India (SBI) reported a 10% YoY drop in net profit for Q4FY25, down to ₹18,642.59 crore from ₹20,698.35 crore last year. Kotak Mahindra Bank also posted weaker numbers. Its consolidated profit fell 7.5% YoY to ₹4,933 crore, while the standalone net profit dropped 14.5% to ₹3,551.74 crore.
These results from major public and private sector lenders suggest that while core lending activities remain strong, profitability is under pressure. Going forward, market movements will likely depend on upcoming results, global trends, and interest rate expectations.
While May began on a slower note compared to previous months, Finnifty continues to show resilience. Led by strong performances in private financial stocks, the index could regain pace as the month progresses.
Read more on: Stocks to Watch Today, Monday, May 5, 2025: DMart, SBI, Kotak, Tata Motors in Focus
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: May 5, 2025, 11:59 AM IST
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