Adani Enterprises, ONGC, Cipla, Tata Consumer Among Top Weekly Gainers As Growth Bets Lift Sentiment; Will These Stocks Continue To Outperform This Week?

Mumbai, May 18:Indian equities saw strong stock-specific action last week, with infrastructure, energy, pharma and consumer names emerging as key outperformers amid a volatile broader market backdrop. Shares of Adani Enterprises rallied on optimism around its AI infrastructure ambitions and easing legal overhang concerns, while ONGC gained after the government cut royalties on crude oil and gas production, boosting the outlook for upstream producers. Cipla advanced as investors looked beyond near-term earnings pressure and focused on its long-term growth pipeline, while Tata Consumer climbed after projecting double-digit revenue growth and benefiting from improving demand trends in staples and premium products.

Adani Enterprises: Shares of Adani Group’s flagship company surged 8.38% during the week to Rs 2,716, taking its market capitalisation to Rs 3,51,093 crore, driven by two key developments.

The first trigger came from Uber announcing plans to set up its data centre with the group, marking the ride-hailing giant’s debut data centre in the country. The move also reinforced the group’s aggressive push into AI infrastructure after it said in February that it would invest $100 billion to build renewable energy-powered, AI-ready data centres by 2035, as India positions itself in the global artificial intelligence race.

The second catalyst emerged on Thursday, following reports that the U.S. Justice Department is close to dropping criminal fraud charges against founder Gautam Adani.

Look ahead: Going forward, investor focus is likely to remain on the group’s ambitions around energy, airports, port operations, and cement. Any further announcements around partnerships, execution timelines or funding plans could keep sentiment positive. At the same time, developments surrounding the U.S. Justice Department will remain a key monitorable, alongside broader market conditions and risk appetite for infrastructure-heavy conglomerates.

ONGC: Shares of Oil and Natural Gas Corporation climbed 7.22% during the week to Rs 299.35, taking its market capitalisation to Rs 3,76,591 crore, after the government announced a reduction in royalties on crude oil and natural gas production.

The move was seen as a major positive for upstream oil producers, not just because of the direct earnings benefit, but also because it helped ease investor concerns over the possibility of a fresh windfall tax similar to the one imposed in 2022. The royalty cuts signalled that the government is prioritising higher domestic exploration and production instead of increasing the tax burden on producers amid elevated energy prices.

Under the revised structure, the effective royalty rate on onshore crude production has been reduced from 16.66% to 10%, while offshore royalty has been lowered from 9.09% to 8%. Royalty on natural gas production has also been cut to 8% from 10% earlier.

Look ahead: Going forward, investors are likely to track how much of the royalty reduction translates into earnings improvement over the coming quarters, especially if crude oil prices remain elevated. The stock could also remain sensitive to movements in global energy markets, geopolitical developments impacting oil supply, and any further policy measures aimed at boosting domestic hydrocarbon production. Production growth trends and updates on exploration activity will also be key monitorables for the company.

Cipla: Shares rose 6.32% to Rs 1,432 during the week, recording a market cap of Rs 1,15,683 crore, as investors looked past near-term earnings pressure and focused instead on the company’s long-term growth outlook and pipeline opportunities. The rally came despite the drugmaker reporting a sharp 55% year-on-year decline in fourth-quarter profit, hurt by weakness in its US business and margin pressures. Market sentiment was also lifted by Cipla’s management saying the company had clocked its highest-ever annual revenue in FY26, pointing to progress in core markets despite near-term challenges in certain geographies. Investor confidence was further supported by brokerage upgrades and higher target prices, with analysts betting that margin pressures seen in the latest quarter may prove temporary.

Look ahead: Going forward, the street is likely to closely track execution in Cipla’s US business.

Tata Consumer: The stock rose 4.91% to Rs 1,234, clocking a market cap of Rs 1,22,112 crore after the company projected double-digit revenue growth for FY27 and posted quarterly earnings ahead of estimates. Investor sentiment was boosted by steady demand for staples such as tea and salt, improving urban consumption trends, and strong momentum in premium health-focused brands.

The rally was further supported by expectations of margin improvement as tea prices remainbenign and coffee costs begin to ease. Analysts also turned optimistic on the company’s long-term growth trajectory, with brokerages highlighting broad-based volume growth, stronger product mix and expanding contribution from high-growth brands such as Organic India and Tata Sampann.

Look ahead: Going forward, investors are likely to monitor whether Tata Consumer can sustain its double-digit growth guidance amid volatile commodity prices and global supply-chain risks linked to the Middle East conflict. Margin trends, especially the impact of tea, coffee and fuel costs, will remain key watchpoints, alongside the pace of recovery in urban demand. The street will also track growth in premium and health-focused categories as potential drivers for the stock in the coming quarters.

Source:

• NSE
• BSE