ewsba.se
Stock market today: Indian stock market benchmarks- the Sensex and the Nifty 50- ended in the red on Thursday, 7 May, largely due to profit booking in select heavyweights, including HUL, TCS, ITC, and Reliance.
The Sensex fell 114 points, or 0.15%, to end at 77,844.52, while the Nifty 50 settled at 24,326.65, down 4 points, or 0.02%.
However, the mid and small-cap segments posted strong gains, defying the trend in benchmarks. The Nifty Midcap 150 and the Nifty Smallcap 250 indices rose more than 1% each.
The Sensex and Nifty 50 ended in the red largely due to profit booking in heavyweights like HUL, TCS, ITC, and Reliance. This occurred despite positive global cues and a strengthening rupee.
Mid and small-cap indices jumped over 1% as selective buying was evident in these segments of the market. This outperformed the trend seen in the large-cap benchmarks.
The Indian Rupee strengthened by 25 paise to close at 94.24 against the US dollar, partly due to a slump in crude oil prices. This strengthening was a positive factor for the domestic market.
The Nifty 50 has shown a consolidation breakout on the daily timeframe, with the RSI in a bullish crossover and the index moving above the 50 EMA. This suggests an improving trend and potential for a rise towards 24,750–24,800, with support at 24,200.
Stocks like Bajaj Auto, which posted a 34% year-on-year rise in net profit for the March quarter, and Paytm, which reported a net profit of ₹184 crore in Q4 against a loss last year, were in focus.
Thanks to gains in the broader markets, the overall market capitalisation of BSE-listed firms rose to over ₹475 lakh crore from ₹472.8 lakh crore in the previous session, making investors richer by over ₹2 lakh crore in a day.
The domestic market witnessed selective buying as hopes of a potential US-Iran deal grew stronger, driving Brent Crude prices below the $100 per barrel mark. The Indian rupee jumped after a slump in crude oil prices. According to PTI, the domestic currency rose by 25 paise to close at 94.24 against the US dollar.
"Domestic equities swung between gains and losses amid mixed global cues, even as the rupee strengthened. Selective risk appetite was evident in pockets of the market, with mid and small caps outperforming large caps," Vinod Nair, Head of Research, Geojit Investments, noted.
"Reports of a potential US–Iran agreement to gradually reopen the Strait of Hormuz pushed crude below $100 per barrel, easing near-term inflation concerns. However, optimism faded quickly amid uncertainty around nuclear enrichment discussions, triggering profit booking. Going ahead, Q4 earnings and management guidance will remain key drivers of sentiment, though markets are likely to stay volatile until clearer signals emerge from West Asia," said Nair.
In the Nifty 50 index, 24 stocks ended with gains, with HDFC Life, Bajaj Auto, and Mahindra and Mahindra at the top. On the flip side, HUL, TCS, and Titan ended as the top laggards in the index.
In terms of index contribution, HUL, TCS, ITC, Titan, and Bajaj Finance were among the top drags on the index.
Among the sectoral indices, Nifty Consumer Durables, IT, and FMCG fell by almost 1%, while Nifty Auto jumped 2%. Nifty Bank ended with a modest gain of 0.12%.
While the benchmarks ended lower, over 200 stocks, including Bajaj Auto, Cummins India, Lupin, Nestle India, and Tata Steel, hit their 52-week highs in intraday trade on the BSE.
Rupak De, Senior Technical Analyst at LKP Securities, highlighted that the Nifty 50 has given a consolidation breakout on the daily timeframe, suggesting a rise in optimism.
"The RSI is in a bullish crossover on the daily timeframe. Besides, the index has moved above the 50 EMA, confirming an improving trend. In the short term, the trend is likely to remain strong, with the possibility of a rise towards 24,750–24,800. On the lower end, support is placed at 24,200, below which the trend may weaken," said De.
According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, the zone of 24,200–24,180 is expected to act as an immediate support.
"On the upside, the zone of 24,480-24,500 will act as immediate resistance for the index. Any sustainable move above 24,500 will lead to a sharp upside rally up to the 24,650 level in the short term," said Shah.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.