Indian stocks gave up their early gains to close Thursday’s trade, 7 May, as both the Nifty 50 and Sensex ended largely unchanged from the previous close.
The headline indices began the session positively and continued to gain during the first half of trade, buoyed by expectations of reduced tensions between the United States and Iran. However, profit booking later weighed on market sentiment.
Nevertheless, the strong momentum in the broader markets continued, with the Nifty Midcap 100 index rallying 1% and the Nifty Smallcap 100 index closing 0.8% higher, indicating that market breadth remained firmly in favour of the bulls.
Sectoral performance remained mixed, with Nifty Auto, Nifty Realty, and Nifty Chemicals emerging as the top gainers, rising 2%,0.63% and 0.40%, respectively. On the downside, Nifty Consumer Durables slipped 0.94%, while Nifty FMCG and Nifty IT declined 0.76% and 0.70%, respectively.
Tensions in the Middle East appeared to ease further after reports suggested that Iran was reviewing the latest American proposals aimed at ending the conflict. Recent media reports indicated that the US has sent a one-page memorandum of understanding through Pakistani intermediaries to formally end the conflict and pave the way for the gradual reopening of the Strait of Hormuz.
On Wednesday, US President Donald Trump warned Iran of a fresh wave of bombings unless a deal was reached that included reopening the crucial Strait of Hormuz to international shipping.
Result-driven rally lifts select stocks; defence, capital goods extend gains
A majority of the top gainers in Thursday’s trade were driven by result-related moves, as investors rewarded companies that posted better-than-expected Q4 numbers. Godrej Industries locked in at the 20% upper circuit limit at ₹204.45 after its March-quarter earnings beat estimates.
Other earnings-driven gainers included Craftsman Automation, Paytm, Polycab India, CarTrade Tech, and Hero MotoCorp, all of which surged between 11.6% and 3.35%.
Keeping its bull run intact, Tejas Networks shares jumped another 14.7% to ₹531.5 apiece, while Piramal Pharma extended its winning streak to the second straight session, gaining another 11.2% to ₹183.
Nuvoco Vistas Corporation, Jain Resource Recycling, and Aditya Birla Lifestyle Brands also ended the session with gains of over 9%.
Meanwhile, BEML shares settled at ₹2,015, marking their highest level since mid-November, while the continued rally in Bharat Heavy Electricals pushed the stock to a fresh all-time high of ₹408 apiece.
Other capital goods majors such as GE Vernova T&D India, Hitachi Energy India, Apar Industries, and Thermax also advanced between 2.6% and 4.5%.
Defence stocks too witnessed strong buying momentum, with Bharat Dynamics surging 4.7%, while Cochin Shipyard and Hindustan Aeronautics gained 3.5% and 3.4%, respectively.
It was another strong session for HFCL as the stock climbed another 3.4% to hit a fresh record high of ₹147 apiece. The latest rally has taken the stock’s gains to 116% in under two months.
(more to come)