Indian stock market today: Although Indian benchmark indices faced heavy volatility in Wednesday’s session, May 7, they managed to end in the green, as easing global trade tensions, the signing of the free trade agreement with the UK, and strong overseas inflows cushioned the impact of ongoing tensions between India and Pakistan.
The market, which started on a lower note, quickly recouped its losses, and by the mid-trading session, it had turned green as the auto, realty, and metal sectors lent support to the recovery.
The Nifty 50 finished the trade with a gain of 0.14%, reclaiming the 24,400 mark to settle at 24,414, while the Sensex gained 105 points or 0.13% to close at 80,746. The broader markets reversed their sharp losses from the previous day, with both the Nifty Midcap 100 and Nifty Smallcap indices ending the session with gains of 1.50%.
On May 7, 2025, India launched a series of missile strikes into Pakistani territory and Pakistan-administered Kashmir under “Operation Sindoor,” targeting nine locations alleged to be militant infrastructure.
This action was in retaliation for the April 22 Pahalgam attack in Indian-administered Kashmir, which resulted in the deaths of 26 Indian tourists and was attributed to Pakistan-based militant groups.
Despite escalating geopolitical tensions between the two nations, overseas investor sentiment remains largely unaffected as they continue to pour funds into the Indian stock market, remaining net buyers for the last 14 consecutive trading sessions.
Their optimism is rooted in improving domestic fundamentals and the growing belief that a domestically driven economy will help the Asia’s third largest economy to withstand the global trade war better than most peers.
On the stock-specific front, textile stocks emerged as top gainers as investor sentiment improved following the official signing of a landmark Free Trade Agreement between India and the United Kingdom, raising hopes that the Indian textile sector could be one of the major beneficiaries of the pact.
Sectoral Watch: Auto stocks shine; FMCG underperforms
The Nifty Auto index emerged as the top sectoral performer, ending with a gain of 1.66%, followed by Nifty Realty, Nifty Metal, and Nifty PSU Bank, which closed with gains ranging from 0.29% to 1.12%. On the losing side, Nifty FMCG was the top sectoral laggard, closing with a decline of 0.52%.
Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Investments Limited, said, “Indian equity markets exhibited strong resilience amid recent Indo-Pak border tensions; the measured market response indicated that geopolitical risks were largely priced in and expectations of de-escalation are prevailing among investors. At the same time, the progress on the India–UK FTA further buoyed investor optimism, driving gains in key sectors such as textiles, automobiles, and information technology.”
“Globally, investor sentiment has improved as the United States and China signal a willingness to resume trade negotiations. Meanwhile, China’s recent interest rate cut contributed to a broadly positive tone across Asian markets. Market focus will shift to the FOMC meeting, though a rate cut appears unlikely, but Fed comments will be keenly watched,” he further added.
Indian stock market may remain range-bound in the near term, say analysts
Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty 50 continues to consolidate within a narrow range, having failed to move past the 61.80% retracement level of the previous decline from the all-time high of 26,277 to the recent low of 21,743. This consolidation may persist in the near term, as the index appears to be in no hurry to make a decisive move beyond the 24,000–24,550 range. A decisive breakout above 24,550 could potentially trigger a rally toward higher levels. On the downside, immediate support is placed at 24,200; a break below this level may extend the correction toward 24,000.”
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
