Indian Stock Market Surges as Tensions Ease Between US and Iran

Indian Equity Markets End with Strong Gains as US-Iran Agreement Optimism Grows

In a volatile session on May 6, the Indian equity markets ended with significant gains, with the Nifty closing above the 24,300 mark. Optimism grew over a potential US-Iran agreement to ease geopolitical tensions, supporting global cues and a decline in crude oil prices. The US President Donald Trump's signal towards a possible peace deal with Iran contributed to the positive market sentiment.

The market opened on a positive note, tracking supportive global cues and a decline in crude oil prices. As the session progressed, the market witnessed intermittent profit booking. However, buying in the final hour lifted sentiment, helping the indices close near the day's high.

Key Market Figures

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• At close, the Sensex was up 940.73 points or 1.22 percent at 77,958.52.
• The Nifty was up 298.15 points or 1.24 percent at 24,330.95.

Broader markets outperformed the benchmark, with the Nifty Mid, Smallcap indices rising nearly 2% each. The Indian rupee staged a strong recovery in today's session after hitting a fresh low of 95.43 in the previous session, closing higher by 68 paise at 94.61 against the previous close of 95.29 per dollar.

Sectoral Performance

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The biggest Nifty gainers were Interglobe Aviation, Trent, Tata Motors Passenger Vehicles, Shriram Finance, Asian Paints, while losers were ONGC, L&T, Reliance Industries, Power Grid Corp, and NTPC.

More than 160 stocks touched their 52-week high on the BSE, including HFCL, Bank of Maharashtra, Marico, Aditya Birla Capital, Data Patterns, SAIL, Natco Pharma, Adani Green Energy, Vardhman Textiles, Nestle India, Syrma SGS, Cummins, Lloyds Metals, Apar Industries, Kirloskar Oil, J&K Bank, Hitachi Energy, Schneider Infra, among others.

Stock-Specific Action

Hero MotoCorp shares rose 1% after the company reported a 30% jump in Q4 net profit. Meanwhile, Larsen & Toubro shares declined 1% following a drop in quarterly profit. Coforge surged 9% on strong Q4 earnings, while Poonawalla Fincorp gained 4% backed by robust results. Shares of GK Energy advanced 5% after securing an order worth ₹354 crore. Embassy Developments jumped 20% after receiving relief from insolvency proceedings following a favourable ruling by the NCLAT.

On the downside, United Breweries slipped 2% due to a decline in Q4 revenue. Raymond Realty, however, rallied 20% on the back of strong quarterly performance. Separately, SPML Infra shares added 4% on bagging an order worth ₹1,128 crore from NTPC.

Technical Outlook for May 7

Rupak De, Senior Technical Analyst at LKP Securities, suggests that Indian equities continued to trade weak as crude prices remained firm. The Nifty has sustained below the 50EMA for eight consecutive sessions, keeping the bearish trend intact. However, a closer and more granular view of the Nifty chart suggests the possibility of a meaningful recovery from current levels.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, notes that the Nifty opened with a gap-up but failed to build on the early momentum, gradually drifting lower to mark an intraday low of 23,998. However, strong and steady buying interest emerged at lower levels, triggering an impressive recovery in the final hour of trade. The index eventually closed at 24,331, gaining 1.24% for the day.

Going ahead, the immediate resistance for Nifty is placed in the 24,450-24,500 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 24,650, followed by 24,800 in the short term. On the downside, the immediate support for Nifty is placed in the 24,220-24,200 zone.