Tata Motors led the gainers, rallying 5.18%, followed by gains in Jio Financial, Bajaj Finance, and Shriram Finance. In contrast, Asian Paints, Sun Pharma, and ITC saw losses. Sector-wise, auto and capital market indices led, while FMCG, pharma, and defence lagged.
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Benchmark indices closed with marginal gains on Wednesday after a volatile session marked by early pressure from geopolitical tensions. The BSE Sensex finished at 80,746.78, up 105.71 points or 0.13 per cent, while the Nifty50 settled at 24,414.40, gaining 34.80 points or 0.14 per cent.
Markets opened sharply lower following escalating regional tensions but recovered throughout the day as investors appeared to take comfort from statements suggesting a measured approach to the situation. The broader markets outperformed the benchmarks significantly, with the Nifty Midcap 100 surging 1.59 per cent to 54,287.75 and Nifty Smallcap 100 advancing 1.38 per cent.
Tata Motors emerged as the top gainer among Nifty companies, soaring 5.18 per cent to close at ₹681.80. Other prominent gainers included Jio Financial Services, which climbed 2.11 per cent to ₹256.50, Bajaj Finance advancing 2.04 per cent to ₹8,977, Shriram Finance rising 1.85 per cent to ₹635, and Eternal gaining 1.65 per cent to ₹236.48.
“Markets remained volatile but managed to close slightly in the green amid mixed signals. Geopolitical tensions, following India’s military response to a terrorist attack, triggered a gap-down opening. However, a swift recovery helped the indices edge higher by the close,” said Ajit Mishra, SVP, Research at Religare Broking Ltd.
On the losing side, Asian Paints led decliners with a 3.97 per cent drop to ₹2,322, followed by Sun Pharma falling 2.10 per cent to ₹1,780.90. Bajaj Auto decreased by 1.26 per cent to ₹7,845, ITC declined 1.24 per cent to ₹430.15, and Grasim Industries shed 1.14 per cent to close at ₹2,697.70.
Sector-wise performance was mixed, with auto stocks leading gains, up 1.66 per cent, while FMCG and pharmaceuticals closed in negative territory. The Nifty Defence Index was the biggest sectoral loser, down 1 per cent, while the Nifty Capital Market index surged 3.22 per cent.
Market breadth remained positive with 2,099 stocks advancing against 1,800 declines on the BSE. Sixty-one stocks hit 52-week highs, while 138 touched 52-week lows. Three stocks hit the lower circuit, while none hit the upper circuit.
The Indian rupee weakened significantly against the US dollar. “Amidst lingering geopolitical concerns and a stronger dollar index, the Indian rupee experienced its most significant single-day drop in a month, continuing its decline for the second day,” noted Dilip Parmar, Senior Research Analyst at HDFC Securities. He added, “Spot USDINR is anticipated to trend upward, potentially reaching 85.70 if it holds above 85.”
Technical analysts remain cautious about the immediate market outlook. “The index continues to consolidate within a narrow range, having failed to move past the 61.80 per cent retracement level of the previous decline from the all-time high of 26,277 to the recent low of 21,743,” said Rupak De, Senior Technical Analyst at LKP Securities.
Hrishikesh Yedve of Asit C. Mehta Investment Intermediates observed, “Nifty formed a big bullish candle on the daily chart, indicating buying interest at lower levels. However, the index is still struggling to cross the crucial resistance zone of 24,590.”
Foreign institutional investors have maintained their bullish stance, injecting over ₹43,900 crore into Indian equities over the past 14 consecutive sessions, providing underlying support to the market despite the volatility.
Looking ahead, market participants are closely watching the outcome of the US Federal Reserve’s monetary policy meeting. “All eyes are now on the US Fed, and markets are likely to react to the FOMC meeting outcome and commentary in early trades,” said Ajit Mishra.
Analysts expect the consolidation to continue in the near term. “We expect it to extend the consolidation in the range of 53,500-56,000 for Bank Nifty, while Nifty is expected to trade within the 24,100–24,600 range,” according to Bajaj Broking Research. “Volatility is likely to stay elevated due to ongoing geopolitical tensions, tariff-related developments, and Q4 earnings progress.”
Published on May 7, 2025
