Indian benchmark indices ended marginally lower on Thursday, May 7, amid profit booking in select heavyweight stocks such as Hindustan Unilever, TCS, ITC and Reliance Industries. However, strong buying in broader markets helped midcap and smallcap stocks outperform the benchmarks.
The Sensex fell 114 points, or 0.15 percent, to close at 77,844.52, while the Nifty 50 slipped 4 points, or 0.02 percent, to settle at 24,326.65.
Despite the muted close in frontline indices, broader markets remained strong. The Nifty Midcap 150 and Nifty Smallcap 250 indices gained more than 1 percent each.
Supported by gains in broader markets, the total market capitalisation of BSE-listed companies rose to over ₹475 lakh-crore from ₹472.8 lakh-crore in the previous session, adding more than ₹2 lakh-crore to investor wealth in a single day.
Market sentiment received support from hopes of a potential US-Iran agreement, which pushed Brent crude prices below the $100-per-barrel mark. Lower crude prices also boosted the rupee, with the domestic currency appreciating by 25 paise to close at 94.24 against the dollar.
Vinod Nair of Geojit Investments said domestic equities witnessed selective buying amid mixed global cues, while the strengthening rupee and easing crude oil prices supported investor sentiment.
He noted that reports of a possible US-Iran agreement to gradually reopen the Strait of Hormuz eased near-term inflation concerns by pulling crude prices below $100 per barrel. However, uncertainty surrounding nuclear enrichment discussions later triggered profit booking in the market. According to him, quarterly earnings and management commentary will continue to drive market direction, though volatility may persist due to evolving geopolitical developments in West Asia.
Despite the muted close in frontline indices, broader markets remained strong.
Nifty Midcap 150 rose more than 1 percent
Nifty Smallcap 250 gained over 1 percent
BSE market capitalisation climbed above ₹475 lakh-crore
Investors added over ₹2 lakh-crore in wealth in a single session
Market sentiment improved after hopes of a possible US-Iran agreement pushed Brent crude prices below the $100-per-barrel mark.
The easing in crude prices also strengthened the rupee.
Indian rupee appreciated by 25 paise
Rupee settled at 94.24 against the dollar
Lower crude prices eased inflation concerns
Selective buying emerged in broader markets
Vinod Nair of Geojit Investments said investor sentiment improved due to lower crude oil prices and rupee strength, although uncertainty over West Asia tensions triggered intermittent profit booking.
Sectoral trends remained mixed.
Nifty Auto index surged 2 percent
Nifty Bank rose 0.12 percent
Nifty Consumer Durables fell nearly 1 percent
Nifty IT slipped around 1 percent
Nifty FMCG declined about 1 percent
Among Nifty 50 stocks, the biggest gainers were:
HDFC Life
Bajaj Auto
Mahindra & Mahindra
Rupak De of LKP Securities, said the Nifty has given a consolidation breakout on the daily chart, indicating improving market sentiment.
Immediate support: 24,200
Immediate resistance: 24,480–24,500
Upside target: 24,750–24,800
Strong breakout above 24,500 may push Nifty towards 24,650 in the short term
Sudeep Shah of SBI Securities, said the 24,200–24,180 zone is expected to act as a strong support area for the index.
(By arrangement with livemint.com)
