Indian stocks closed Wednesday’s trade, May 6, with solid gains as buying emerged towards the fag end of the session after reports indicated that the US and Iran are nearing a deal to end the two-month-long conflict.
The Nifty 50 concluded the trade , while the S&P BSE Sensex wrapped up with a strong 1.22% gain at 77,958. The broader markets also posted stellar gains, with both the Nifty Midcap 100 and Nifty Smallcap indices rallying nearly 2%.
The tensions in the Middle East, which had escalated earlier this week, are now moving towards de-escalation, a development that could potentially bring an end to the over 60-day conflict between the US and Iran.
Axios reported, citing two US officials and two other sources briefed on the issue, that the White House believes it is nearing a one-page, 14-point memorandum of understanding to end the war and establish a framework for more detailed nuclear talks. Mint could not independently verify the report.
These developments came after US President Donald Trump announced in a Truth Social post that the US would temporarily halt “Project Freedom,” a military operation launched to escort vessels through the Strait of Hormuz, citing progress in negotiations. Iran said earlier on Wednesday that it would accept a peace deal only if it was “fair.”
Mid-cap tech stocks attract strong buying momentum
There was strong buying in mid- and small-cap technology stocks, with , Coforge, eClerx Services, Netweb Technologies, and Persistent Systems rallying 11.7%, 9.3%, 8.8%, 4.5%, and 4.4%, respectively.
Maintaining its bull run for the ninth straight session, HFCL shares further built on gains, surging 10% to a 19-month high of ₹143 apiece.
Wockhardt extended its winning momentum, gaining another 10% to ₹1,692 apiece. Among auto stocks, , Tata Motors, Ashok Leyland, UNO Minda, Bajaj Auto, and Mahindra & Mahindra all closed with gains between 3% and 6.3%.
Ahead of Q4 results, CarTrade Tech shares moved up 10% to ₹1,810 apiece. Crude-sensitive stocks too regained strength, with Hindustan Petroleum Corporation surging 6.8% to ₹399.5 apiece, while posted a similar 6.8% rally to ₹4,527 apiece.
Other OMCs, including and Indian Oil Corporation, advanced 5.5% and 4.6%, respectively. Meanwhile, Vodafone Idea shares jumped 4.5% after the reappointment of Kumar Mangalam Birla as non-executive chairman.
Capital market stocks such as Nuvama Wealth Management, Motilal Oswal Financial Services, and Choice International also surged over 4%.
Oil India, Schneider Electric, Groww lead losers
In terms of top laggards, Oil India shares slipped 5.5% to ₹450 apiece, while Schneider Electric and Groww also posted similar declines of over 5%.
Ather Energy, Vardhman Textiles, and dropped 4.3%, 4.1%, and 3.7%, respectively.
Meesho shares continued to witness profit booking, falling another 3.7% to ₹196 apiece.
CreditAccess Grameen, Siemens Energy India, Aadhar Housing Finance, Apar Industries, , KPIT Technologies, and Transformers & Rectifiers all declined over 3%.
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