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Informist, Wednesday, May 7, 2025

By Akash Mandal

MUMBAI – After a volatile session in which the market swung between red and green numerous times in the first hour and a half, the benchmark indices managed to end slightly higher Wednesday. The indices had opened lower and fell to their lowest levels in a week after India's overnight strikes on nine terror camps in Pakistan and Pakistan-occupied Kashmir fueled uncertainty whether the situation between the two countries would deteriorate. However, the indices recovered soon, led by strong gains in automobile and financial services stocks, and then traded higher for the rest of day but the undercurrent remained nervous.

Supported by strong gains in financial services stocks, the Nifty 50 ended at 24414.40 points, up 34.80 points or 0.1%, and the BSE Sensex closed at 80746.78 points, up 105.71 points or 0.1%. Broader market indices ended the session 1-2% higher, recovering around half of the sharp 3-4% decline seen Tuesday. While the Indian market held strong Wednesday amid rising uncertainty between India and Pakistan, Pakistan's KSE-100 index fell over 6% in early trade. At 1530 IST, the KSE-100 was off-lows but still down more than 2%. A report by Moody's, which said tensions between India and Pakistan could affect Pakistan's economic stability, also weighed on the index, the Indian Express reported.

Automobile stocks were some of the biggest gainers after India inked a free trade agreement with the UK which will reduce the tariffs on automobiles and auto parts imported from UK to 10% from 100%. The Nifty Auto ended nearly 2% higher and was the second-biggest gainer among sectoral indices. Samvardhana Motherson International, Mahindra & Mahindra, and Bharat Forge ended 2-5% higher.

Shares of Tata Motors ended 5% higher after its board late Tuesday approved the demerger of the company's commercial vehicles segment into a separate listed entity, TML Commercial Vehicles. While the company's commercial vehicles unit looks positive, its passenger vehicles unit may continue to struggle due to low demand and lower margins compared to competitors, an analyst at a domestic brokerage said.

The stock also got a boost from the trade agreement between India and the UK, which will drive the company's Jaguar Land Rover business. "JLR has been struggling in places like China and US...the benefits from the FTA would help balance out those negatives and the JLR business could achieve the management's guidance," the aforementioned analyst said.

Most sectoral indices ended higher. The Nifty India Defence index, which had gained nearly 2% in early trade, ended the session 1% lower and was the worst hit. Defence stocks had risen early in the session on hopes that revenues of defence companies could grow fast in case of a potential war after India's retaliation to the terrorist attack at Pahalgam in Jammu and Kashmir last month. The index has rallied sharply in recent times, rising over 16% over the past 30 days. Bharat Dynamics, Mazagon Dock Shipbuilders, and Garden Reach Shipbuilders & Engineers ended 1-5% lower.

Shares of BSE soared 10% to an all-time high early in the session as brokerages are bullish on the company and expect it to generate higher volumes. The stock ended nearly 7% higher as the company's consolidated net profit for the March quarter doubled on year and beat the Street's view. The earnings were announced after market hours Tuesday.

One 97 Communications ended over 7% higher after its profitability at the operating level improved on year during the March quarter. MRF ended over 4% higher after its bottom line for the quarter beat the Street's view by a wide margin. Piramal Enterprises ended over 7% higher after the company said it expects a net profit of INR 13 billion to INR 15 billion in 2025-26 (Apr-Mar), sharply higher than the INR 4.85 billion it reported in FY25.

Shares of Swiggy ended 4% lower. The stock has fallen more than 4% in the past two sessions after it Monday notched the biggest single-day gain since its listing. The stock had ended 13% higher Monday after the company reaffirmed its focus on the 10-minute delivery segment while rival Eternal said it will shut down its 'Quick' service. Radico Khaitan ended 4% lower after India's trade agreement with the UK slashed duties on imports of Scotch whisky and gin from the UK to 75% from 150%, thus increasing competition for local producers.

* Of the Nifty 50 stocks, 25 rose and 25 fell

* Of the Sensex stocks, 15 rose and 15 fell

* On the NSE, 1,772 stocks rose, 1,049 fell, and 81 were unchanged

* On the BSE, 2,206 stocks rose, 1,683 fell, and 157 were unchanged

* Nifty Auto: up 1.7%; Nifty Consumer Durables: up 1.2%; Nifty India Defence: down 1%

BSE                                               NSE

Sensex: 80746.78, up 105.71 points or 0.1%      Nifty 50: 24414.40, up 34.80 points or 0.1%

End

Edited by Ashish Shirke

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