Stock Market Close on May 7: Markets End Flat After Volatile Session; Auto, Defence Stocks Shine Despite Profit Booking

Mumbai, May 7: Markets ended little changed on Thursday after a volatile trading session, as gains in auto, defence and capital goods stocks countered profit booking in IT and FMCG following the sharp rally seen in the previous session.

The Sensex edged down 114 points or 0.15 percent to settle at 77,844.52, while the Nifty 50 slipped 4.30 points or 0.02 percent to close at 24,326.65 after swinging between gains and losses through the day.

Firm Start

The benchmark indices had started on a firm footing, tracking record highs across global markets and correcting crude oil prices, but the bourses gradually gave up momentum as cautious trading and intermittent profit-taking took over stocks.

Slide, Recovery

The rally lost its mojo as investors booked profits in heavyweight sectors taking advantage of Wednesday’s surge of nearly 1.2% in Sensex and Nifty. In fact, they booked profits so much so that the Sensex fell nearly 400 points from the day’s high at one point, while the Nifty slipped below the 24,350 mark before recovering partially in late trade. At the end, both managed to close little changed as buying emerged among auto, defence and capital goods.

Mixed Trend

Sectorally, the market displayed a mixed trend. Auto stocks emerged as the standout performers, with the Nifty Auto index climbing nearly 2% as investors cheered strong earnings and upbeat guidance from companies such as Bharat Forge, Bajaj Auto, and Mahindra & Mahindra. Defence and capital goods counters also witnessed strong buying interest, aided by robust quarterly numbers and healthy order books.

Shares of Bharat Forge hit a 52-week high after management projected strong revenue growth for FY27, while CG Power and Industrial Solutions surged after reporting a 32% jump in March-quarter profit and strong order inflows.

Broader Outperformance

The broader market continued to outperform frontline indices. Midcap and smallcap indices gained 1.1% and 0.87%, respectively, reflecting sustained investor appetite for domestic growth-oriented sectors despite volatility in large-cap benchmarks.

Under Pressure

IT and PSU banking stocks came under some pressure after recent gains. The Nifty IT index slipped 0.8%, with Tech Mahindra and TCS ending up as top losers on the Nifty, weighed down by weakness in major tech stocks amid concerns over global growth and cautious commentary from overseas markets. FMCG stocks also traded weak as investors turned cautious on margin outlook amid elevated input costs.

Among individual stocks, Paytm gained sharply after reporting a quarterly profit, while Godrej Consumer Products declined following concerns around rising input costs despite posting higher earnings.

Meanwhile, the rupee remained volatile during the session but ended stronger at 94.25 against the U.S. dollar, supported by softer crude prices and improved risk sentiment.

Markets may continue to remain range-bound in the near term, with investors closely monitoring developments in the Middle East, crude oil prices, foreign fund flows and the ongoing earnings season for further direction.

Source:

• Exchanges