Indian Benchmark Indices Rebound From Intraday Lows; Mid and Small Caps Outperform

Out of 2,902 stocks traded on the NSE, 1,772 advanced, 1,049 declined, and 81 remained unchanged.

Market Update at 4:15 PM: On Wednesday, Indian benchmark indices recovered from early declines and closed higher, with the Nifty 50 finishing above the 24,400 mark. The BSE Sensex gained 105.71 points or 0.13 per cent to end at 80,746.78, while the Nifty 50 rose by 34 points or 0.14 per cent to settle at 24,414. After opening with a sharp dip, markets rebounded sharply, led by strength in financial and auto stocks. Volatility also eased as India VIX dropped below the 19 level.

In sectoral action, auto stocks stood out, with the Nifty Auto index jumping nearly 1.6 per cent to reach a new 3-month high. Mahindra & Mahindra led the rally in auto, gaining over 1.5 per cent, while Tata Motors was up by more than 0.7 per cent. Among the top contributors to Nifty’s gains were HDFC Bank, which added 16.49 points, and Tata Motors with 15.57 points. On the downside, Reliance Industries and Sun Pharmaceuticals dragged the index lower by 13.9 and 11.04 points, respectively.

Textile stocks were in focus following the announcement of a landmark Free Trade Agreement (FTA) between India and the UK. Defence stocks, which opened higher, lost momentum as the day progressed. Paras Defence and Space Technologies ended over 1 per cent higher, while Bharat Electronics and Hindustan Aeronautics saw mixed movement.

Meanwhile, BSE Ltd hit a record high after reporting strong March quarter results. MRF Ltd reported a 29 per cent year-on-year increase in consolidated net profit to Rs 512 crore for Q4FY25, with revenue rising 11 per cent YoY to Rs 7,075 crore. The company also declared a final dividend of Rs 229 per share for FY25, with the record date yet to be disclosed.

Broader markets outperformed, with the Nifty Mid-Cap and Small-Cap 100 indices gaining 1.59 per cent and 1.38 per cent, respectively. Out of 2,902 stocks traded on the NSE, 1,772 advanced, 1,049 declined, and 81 remained unchanged. A total of 26 stocks touched 52-week highs, 95 hit 52-week lows, and 43 were locked in upper circuits while 118 hit lower circuits.

Market Update at 12:20 PM: Indian equity markets opened lower on Wednesday, reacting to escalating tensions following India’s military strikes on Pakistan and Pakistan-administered Kashmir. These were in retaliation to last month’s deadly attack on Hindu pilgrims in Kashmir.

The Nifty 50 began the day down by 0.6 per cent, but trimmed losses to trade 0.02 per cent lower by 12:15 p.m. IST. The Sensex mirrored this move, also down 0.2 per cent. Sector-wise, four out of 13 segments were in the red. While small-cap stocks jumped back to 1 per cent, mid-caps showed relative strength, gaining 1.43 per cent.

Meanwhile, defence-related stocks showed mixed trends—Paras Defence advanced by around 2 per cent, while Bharat Electronics and Hindustan Aeronautics saw fluctuating movements.

Textile stocks rallied sharply, driven by the India-U.K. trade agreement finalised on Tuesday. The deal is expected to benefit Indian exporters through zero tariffs, improving competitiveness against China and Bangladesh.

On the corporate front, Tata Motors gained 3.2 per cent after receiving shareholder approval to restructure into two listed entities. Paytm shares surged 6 per cent following the company’s announcement that it expects to report profits this quarter.

Market Update at 10:00 AM: India's key stock indices opened in the red on Wednesday, weighed down by rising geopolitical tensions after the country launched airstrikes targeting alleged terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir. This marks one of the most serious escalations between the two nuclear-armed neighbors in more than two decades.

By 9:15 a.m. IST, the Nifty 50 had dropped 0.6 per cent to 24,233.3, while the BSE Sensex was down 0.86 per cent at 79,948.8. Losses were broad-based, with all 13 sectoral indices trading lower. Mid-cap and small-cap indices, which have a greater focus on domestic businesses, declined by 1.3 per cent and 1.5 per cent, respectively.

According to Indian authorities, the strikes targeted nine locations linked to militant groups responsible for a recent attack on Hindu pilgrims in Jammu and Kashmir that claimed 26 lives. Pakistan strongly condemned the action, labeling it a "blatant act of war," while the United Nations urged both sides to exercise maximum military restraint.

Pre-Market Update at 8:00 AM: The Indian stock market is likely to open lower on Wednesday, following the escalation of tensions between India and Pakistan after India's Armed Forces conducted ‘Operation Sindoor’, targeting terrorist infrastructure in Pakistan.

While Asian markets saw gains, buoyed by expectations of US-China trade talks, US markets ended in the red overnight.

On Tuesday, the Indian markets ended lower amid rising Indo-Pak tensions, with the Nifty 50 slipping below the 24,400 mark.

The Sensex dropped 155.77 points, or 0.19 per cent, closing at 80,641.07, while the Nifty 50 lost 81.55 points, or 0.33 per cent, settling at 24,379.60.

Asian indices traded higher due to hopes surrounding US-China trade talks. Japan’s Nikkei 225 gained 0.22 per cent, while the Topix rose 0.38 per cent. South Korea’s Kospi added 0.32 per cent, but the Kosdaq fell 0.7 per cent. Hong Kong’s Hang Seng index futures suggested a positive opening.

The Gift Nifty was trading around the 24,350 mark, reflecting a discount of nearly 81 points from the previous Nifty futures close, indicating a weak start for Indian indices.

US stock markets ended lower for the second consecutive session on Tuesday. The Dow Jones fell by 389.83 points, or 0.95 per cent, to 40,829.00, while the S&P 500 dropped 43.48 points, or 0.77 per cent, closing at 5,606.90. The Nasdaq Composite ended 154.58 points, or 0.87 per cent, lower at 17,689.66.

Early on Wednesday, India’s Armed Forces conducted ‘Operation Sindoor’, targeting terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK). Nine sites were hit, and the operation was described as “focused, measured, and non-escalatory.” The strikes were aimed at terrorist camps that planned and executed attacks on Indian soil.

US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are set to meet China’s top economic official in Switzerland on Saturday, which could be an initial step in resolving the ongoing trade conflict.

India and the UK have agreed on a historic free trade deal. Under the agreement, India will reduce automotive tariffs to 10 per cent, from over 100 per cent, and cut import duties on UK goods such as whisky, gin, cosmetics, and medical devices.

The US trade deficit surged to a record high in March, widening 14.0 per cent to USD 140.5 billion, surpassing economists’ forecasts of USD 137.0 billion.

China’s central bank plans to cut interest rates by 10 basis points and reduce the reserve requirement ratio by 50 basis points, as announced by PBOC Governor Pan Gongsheng.

Gold prices fell as market optimism around US-China trade talks weakened demand for safe-haven assets. Spot gold fell 1.3 per cent to USD 3,386.36 an ounce, while US gold futures dropped 0.8 per cent to USD 3,395.20.

Crude oil prices rose due to weakening production in the US and rising demand in Europe and China. Brent crude futures rose 0.69 per cent to USD 62.58 a barrel, while US West Texas Intermediate crude gained 0.86 per cent to USD 59.60 a barrel.

On May 06, Foreign Institutional Investors (FIIs) were net buyers, purchasing Rs 3,794.52 crore worth of shares. Domestic Institutional Investors (DIIs) sold shares worth Rs 1,397.68 crore during the same period. 

For today, CDSL, RBL Bank and Mannapuram Finance continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.