Hindustan Copper, ABB India to Vodafone Idea: 35 Nifty 500 stocks gain up to 28% last week. Do you own any of these?

Hindustan Copper, Vodafone Idea, MCX and Jindal Stainless were among 35 Nifty 500 stocks that ended last week with double-digit gains, even as the Indian stock market witnessed sharp volatility, driven by heightened geopolitical tensions and mixed December-quarter earnings, along with persistent selling by overseas investors.

The Nifty 50 closed Friday’s session 0.39% lower at the 25,320 level but still managed to end the week with a gain of 1.10%, as stock-specific action continued in the run-up to the Union Budget 2026.

However, for the month, the index fell 3.10%, or 809 points, marking its weakest January performance in over a decade. The last time January recorded such a decline was in 2016, when the index fell nearly 5%.

Weak global cues—such as US President Donald Trump threatening additional tariffs on the European Union, South Korea, India and Canada—have dampened global risk appetite, while warnings of possible military strikes on Iran have also created uncertainty.

Back home, domestic factors have remained unfavourable for bulls, as December-quarter results have so far been mixed, with companies' bottom-line figures getting impacted by high labour costs.

The sharp rise in crude oil prices, coupled with persistent selling by FPIs, has also weighed on market sentiment. According to NSDL data, FPIs sold shares worth ₹36,000 crore in January, following a record withdrawal of ₹1.66 lakh crore in 2025.

The signing of a free trade agreement between India and the European Union and the Economic Survey projecting 6.8–7.2% growth in FY27 are among the key tailwinds for the market.

Defence and capital goods stocks lead gains amid Budget-led capex optimism

Thirty-five Nifty 500 stocks closed with returns of over 10%, with Hindustan Copper leading the rally. Although the stock came under heavy selling pressure during Friday’s session, falling 10% a day after hitting the 20% upper circuit, it still managed to finish the week with a 28% surge.

Garden Reach Shipbuilders and Data Patterns (India) were two defence stocks that bucked the trend during a volatile market, as expectations of a large capex allocation in the Union Budget 2026 lifted optimism around the sector, leading both stocks to rally by up to 24%.

Other defence-related stocks such as Mazagon Dock Shipbuilders, Shipping Corporation and Cochin Shipyard also gained over 11% each. In a similar fashion, capital goods stocks have come under investors’ radar amid expectations that the government may increase capital expenditure by 10–15% in Budget 2026.

In response, GE Vernova T&D India, ABB India, Siemens Energy India, Syrma SGS Technology, HBL Engineering, Hitachi Energy India, Schneider Electric, Apar Industries, Triveni Engineering and Aegis Vopak Terminals surged in the range of 13% to 19%.

Vodafone Idea was another top performer last week, surging 12.5% to ₹11.2 apiece, with the majority of the gains occurring during Friday’s session.

Other stocks such as Oil India, Karur Vysya Bank, ACME Solar Holdings, V-Guard Industries, HFCL, Aegis Logistics, GMDC, MCX, ZF Commercial Vehicles, Adani Green Energy, Star Health and Allied Insurance Company, Jindal Stainless, Gillette India, Adani Energy Solutions, Zen Technologies, and Shyam Metalics and Energy also closed the week with gains ranging between 10% and 17%.

Volatility is expected to continue, say analysts

Ajit Mishra, SVP of Research at Religare Broking, said the upcoming week is packed with key domestic triggers, with the Union Budget 2026–27 on February 1 remaining the primary focus for markets. He noted that investors will closely track fiscal discipline, capital expenditure priorities, and growth-oriented policy measures.

Mishra added that the RBI’s monetary policy decision on February 6 will also be closely watched, especially after cumulative rate cuts of 125 basis points since the beginning of the year. He further said that high-frequency indicators such as the HSBC Manufacturing PMI Final, followed by the Services and Composite PMI Finals, will offer additional clarity on economic momentum, while a busy earnings calendar across sectors is likely to add to stock-specific volatility.

Vinod Nair, head of research at Geojit Investments Limited, said markets are expected to remain largely event-driven, with the Union Budget acting as the key domestic trigger. According to him, expectations are evenly balanced between growth support and fiscal prudence. Nair noted that cyclical sectors may continue to show relative resilience if supported by policy measures, while IT and other export-oriented stocks are likely to remain sensitive to global macroeconomic cues.

"Overall, markets are expected to stay range-bound, underpinned by strong domestic fundamentals but constrained by external uncertainties, including geopolitical risks, global tariff developments, and the U.S. Fed’s evolving policy outlook," he further stated.

Disclaimer: 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.