Indian stocks gave up their early gains to close Thursday’s trade, 7 May, as both the Nifty 50 and Sensex ended largely unchanged from the previous close.
The headline indices began the session positively and continued to gain during the first half of trade, buoyed by expectations of reduced tensions between the United States and Iran. However, profit booking later weighed on market sentiment.
Nevertheless, the strong momentum in the broader markets continued, with the Nifty Midcap 100 index rallying 1% and the Nifty Smallcap 100 index closing 0.8% higher, indicating that market breadth remained firmly in favour of the bulls.
Sectoral performance remained mixed, with Nifty Auto, NiftyRealty,y and Nifty Chemicals emerging as the top gainers, rising 2%,0.63%,% and 0.40%, respectively. On the downside, Nifty Consumer Durables slipped 0.94%, while Nifty FMCG and Nifty IT declined 0.76% and 0.70%, respectively.
Tensions in the Middle East appeared to ease further after reports suggested that Iran was reviewing the latest American proposals aimed at ending the conflict. Recent media reports indicated that the US has sent a one-page memorandum of understanding through Pakistani intermediaries to formally end the conflict and pave the way for the gradual reopening of the Strait of Hormuz.
On Wednesday, US President Donald Trump warned Iran of a fresh wave of bombings unless a deal was reached that included reopening the crucial Strait of Hormuz to international shipping.
