Indian equity benchmarks, Sensex and Nifty50, closed with marginal gains on 7 May 2025, after a volatile session. The market showed resilience despite geopolitical events like "Operation Sindoor" and mixed global cues, navigating border tensions, US Federal Reserve anticipation, and corporate earnings.
The market's steadiness, despite the cross-border military operation, was notable. This suggests investors may have priced in geopolitical risks or expected a swift de-escalation, contrasting with historical reactions to similar events.
Today's Market Snapshot: Key Numbers
Indian Indices at a Glance
The BSE Sensex closed at 80,746.78, up 105.71 points (0.13%), after an intraday swing of over 900 points. The NSE Nifty50 ended at 24,414.40, adding 34.80 points (0.14%). The Bank Nifty gained 0.63%, closing at 54,610.90, recovering after dipping below 54,000.
Broader Market Performance
Broader markets outperformed, with the BSE MidCap index up 1.36% and SmallCap index up 1.16%. On the NSE, midcap and smallcap indices gained up to 1.59%. Market breadth was positive, with 2,133 BSE stocks advancing and 1,655 declining. On the NSE, 1,349 stocks advanced and 1,335 declined. This outperformance suggests investor interest beyond blue-chips, possibly seeking specific growth opportunities despite large-cap volatility.
You can track daily market activity in the Ticker's Market Section.
Top Market Drivers & Developments
Geopolitical Pulse: "Operation Sindoor" and Market Resilience
Indian markets remained stable despite "Operation Sindoor," precision strikes by India on terror camps, suggesting geopolitical risks were largely priced in with expectations of de-escalation.
Global Cues & Fed Watch
Global markets were mixed. US indices closed negatively on 6 May, and European markets traded lower on 7 May. Some Asian markets like Japan's Nikkei fell, while Hong Kong's Hang Seng and Shanghai Composite gained. Investors awaited the US FOMC decision, expecting unchanged rates but seeking clues on future cuts. Positive sentiment from US-China trade talks capped demand for safe-haven assets like gold.
Rupee and Commodities Corner
The Indian Rupee fell about 0.5% against the US dollar to close near 84.80-84.8250, its steepest single-day fall in a month, due to geopolitical tensions and weaker Asian currencies. Brent crude futures rose 0.42% to $62.41 per barrel. Domestic crude traded at Rs 5,066.00. Gold struggled below $3,360/ounce internationally, pressured by US-China trade talk optimism but supported by geopolitical risks. Domestic gold closed at Rs 97,164.00 per 10 grams, down Rs 327.00.
Sectoral Spotlight: Gainers & Losers
Leading the Pack: Auto, Realty, and More
The Nifty Auto index was the top gainer (0.97%-1.66%), driven by Tata Motors, Bharat Forge (up 3.34%), and Samvardhan Motherson (up 2.52%). Eleven of 15 NSE sectoral indices ended positive. Nifty Realty and Consumer Durables rose by up to 1.66%. Nifty Media also gained. Nifty Bank rose 0.63%, led by AU Small Finance Bank (up 2.36%) and IDFC First Bank (up 2.2%).
Sectors Facing Headwinds
Nifty Pharma (down 0.52%) and Nifty FMCG closed lower. Pharma stocks fell due to concerns over potential US tariffs on pharmaceutical imports. The Nifty Defence index was the biggest sectoral loser, suggesting profit-booking after a recent 16-39% surge, as the positive news from "Operation Sindoor" was likely priced in.
Stock-Specific Action: Movers & Shakers
Top Gainers of the Day
- Tata Motors Revs Up: Demerger & UK FTA Fuel Over 5% Rally
Tata Motors surged 4.82%-5.18% to Rs 672.90-Rs 681.80, becoming the top Sensex and Nifty gainer. This was due to shareholder approval for its CV business demerger and the India-UK FTA, which is expected to benefit JLR by reducing import duties.
Read more about it on our blog.
- Financials in Focus: Jio Financial Services & Bajaj Finance Surge
Jio Financial Services gained 2.11% (up to 3.68% intraday). Bajaj Finance climbed 1.50%-2.04%, supported by strong Q4 FY25 results showing an 18.1% net profit growth.
- Coal India Climbs Post Strong Q4 Earnings & Dividend
Coal India was a top Nifty gainer. Its Q4FY25 consolidated net profit rose 12.04% YoY to Rs 9604.02 crore on revenue of Rs 37,824.54 crore, beating estimates. A final dividend of Rs 5.15 per share was announced.
KEI Industries surged over 5% intraday after reporting a 34% increase in Q4FY25 net profit.
Top Losers of the Day
Asian Paints fell 3.18%-3.97% to Rs 2,322-Rs 2,341.15 ahead of its earnings announcement, possibly due to pre-result nervousness and increased competition from new entrants like Grasim's Birla Opus.
Sun Pharma dropped 2.02%-2.10% due to concerns about potential US tariffs on pharmaceuticals following a US executive order to boost domestic drug manufacturing.
- Heavyweights Drag: Reliance, ITC, HCL Tech Dip
Reliance Industries fell 0.76%, ITC by 1.01%, and HCL Technologies by 1.06%.
Sapphire Foods India dropped 5.03% intraday following disappointing Q4FY25 financial results.
- Liquor Stocks Under Pressure Post India-UK FTA
Brewery and distillery stocks like Radico Khaitan fell (Radico down up to 9% from session peak) after the India-UK FTA finalisation, possibly due to concerns about increased competition from imported alcoholic beverages.
Corporate Corner: Earnings & IPO Updates
Q4 Earnings Roundup (Other Notable Results)
- Dabur India reported a Q4FY25 net profit of Rs 312.73 crore (down 8.35% Y-o-Y) on revenue of Rs 2,830.14 crore. A final dividend of Rs 5.25 per share was declared. International business grew 19% in constant currency, offsetting some domestic pressure.
- Blue Star posted a 20.62% Y-o-Y growth in Q4FY25 profit to Rs 193.64 crore, with revenue up 20.77% to Rs 4,018.96 crore. A final dividend of Rs 9 per share was recommended.
IPO Buzz: Subscription Closes for SME Issues
The SME IPOs of Srigee DLM Ltd and Manoj Jewellers Ltd closed on 7 May. Srigee DLM was oversubscribed over 94.74 times (some reports up to 107 times), indicating strong investor appetite for new SME offerings.
Market Sentiment & Outlook
The Indian stock market showed resilience on 7 May, absorbing geopolitical shocks to close slightly positive. Broader market participation was healthy. Investor focus will be on the US Fed's policy outcome, ongoing earnings, global trends, and geopolitical developments. Stock-specific action will likely drive near-term movements.
Technically, the Nifty50 seems to be consolidating between 24,000 and 24,550. A breakout above 24,550 could signal a more significant rally. The market's ability to look past immediate disturbances suggests cautiously optimistic underlying sentiment, though clearer macroeconomic triggers are needed for a sustained broad-based rally.