MarketSmith Analyst Raja Venkatraman Identifies Five Stocks to Watch on May 8

Indian Stock Market Indices Close in Negative Territory on Thursday

The Indian stock market indices, the Sensex and the Nifty 50, closed in negative territory on Thursday, 7 May, primarily due to profit-taking in certain major stocks, including HUL, TCS, ITC, and Reliance. The Sensex decreased by 114 points, or 0.15%, finishing at 77,844.52, while the Nifty 50 ended at 24,326.65, down 4 points, or 0.02%.

Despite the negative trend in the benchmark indices, the mid-cap and small-cap sectors recorded significant gains, countering the overall trend. The Nifty Midcap 150 and the Nifty Smallcap 250 indices both rose by more than 1%.

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The total market capitalisation of firms listed on the BSE increased to over ₹475 lakh crore from ₹472.8 lakh crore in the prior session, resulting in a wealth gain of over ₹2 lakh crore for investors in just one day. The local market saw selective buying as optimism over a possible US-Iran agreement intensified, pushing Brent Crude prices below the $100-per-barrel threshold.

The Indian rupee appreciated following a drop in crude oil prices, with the domestic currency gaining 25 paise to finish at 94.24 against the US dollar, as reported by PTI. The Gift Nifty Live Chart is showing a negative start for the Indian stock market today, with the Gift Nifty trading around the 24,273 level, a discount of 110 points from the Nifty futures' previous close of 24,382.80.

Market Analyst Predicts Cautious Sentiment

According to Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm, the Indian equity markets are expected to remain cautious and highly sensitive to news flow, as escalating geopolitical tensions in the Middle East continue to weigh heavily on investor sentiment despite periodic relief rallies.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Several stocks are recommended for purchase, including Sun Pharma Advanced Research Co. Ltd, Laxmi Organic Industries Ltd, One 97 Communications Ltd (Paytm), Bharat Forge Ltd, and Radico Khaitan Ltd. Here are the specific recommendations:

Stock Recommendations

• Sun Pharma Advanced Research Co. Ltd: Buy above ₹169 with a stop loss of ₹158 and a target price of ₹193.
• Laxmi Organic Industries Ltd: Buy above ₹165 with a stop loss of ₹157 and a target price of ₹181.
• One 97 Communications Ltd (Paytm): Buy above ₹1,200 with a stop loss of ₹1,150 and a target price of ₹1,290.
• Bharat Forge Limited: Buy between ₹1,985–2,010 with a target price of ₹2,290 in two to three months.
• Radico Khaitan Limited: Buy between ₹3,400–3,440 with a target price of ₹3,900 in two to three months.