Motilal Oswal Analyst Recommends Buying Granules India, Nippon Life, and SRF Shares for Short-Term Gains
Stock Market Rallies on Hopes of US-Iran Peace Deal and Credit Guarantee Scheme
The domestic benchmark indices, the Nifty 50 and BSE Sensex, traded higher on Wednesday, 6 May, led by gains in banking stocks after the government approved a credit guarantee scheme to support businesses impacted by the Iran conflict. Investor sentiment was further boosted by positive reactions to key corporate earnings and a decline in oil prices, amid hopes of a potential US-Iran peace deal.
Market Performance
The Nifty 50 rose 0.32% to 24,109.85 as of 13:58 IST, while the Sensex advanced 0.18% to 77,155.71. The rally follows the Union Cabinet's approval of a $1.9 billion emergency credit guarantee programme, aimed at supporting businesses—particularly small firms—facing short-term liquidity challenges due to the Iran war.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Oil Prices Decline
Meanwhile, Brent crude prices eased to around $108 per barrel, down from about $115 earlier in the week, lifting global equities. The decline came after Donald Trump indicated a pause in "Project Freedom"—an operation to escort ships through the Strait of Hormuz—citing "significant progress" toward a broader agreement with Iran.
Market Review and Outlook
According to Ruchit Jain, Head - Equity Technical Research, Wealth Management, Motilal Oswal Financial Services, the Nifty 50 has consolidated within the range of 23,800-24,300 over the last couple of weeks, which appears to be a time-based corrective phase within an uptrend. The consolidation has been mainly due to the recent rise in crude oil prices and the depreciation of the INR.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
| Market Index | Previous Close | Current Close | Percentage Change |
|---|---|---|---|
| Nifty 50 | 24,109.63 | 24,109.85 | 0.32% |
| BSE Sensex | 77,155.50 | 77,155.71 | 0.18% |
Stock Recommendations
Ruchit Jain recommends the following shares to buy or sell in the near-term:
- Granules India Ltd: Buy at CMP of ₹740; SL at ₹690, and Target of ₹840
- Nippon Life India Asset Management Ltd: Buy at CMP of ₹1,080; SL at ₹1,055, and Target of ₹1,150
- SRF Ltd: Buy at CMP of ₹2,700; SL at ₹2,500, and Target of ₹3,050
These stocks have shown strong potential for growth in the near-term, with Granules India being an outperformer in the sector and Nippon Life India Asset Management and SRF Ltd breaking out of their consolidation phases.
Investor Takeaway
Buy shares of Granules India, Nippon Life, and SRF for short-term gains.
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