Sensex and Nifty End Flat in Volatile Trade Amid Strong Performance from Mid and Small-Cap Stocks

Indian Equity Markets End Marginally Lower Amid Volatility

On Thursday, May 7, the Indian equity markets saw a volatile session, with the Nifty managing to hold above the 24,330 mark as hopes of easing geopolitical tensions following reports of a potential US-Iran peace deal continued to drive sentiment.

The benchmarks extended the previous session's gains and opened on a positive note, but failed to hold higher levels due to intermittent profit booking. As a result, the markets eventually ended near the day's low.

Market Closures

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At close, the Sensex was down 114 points or 0.15 percent at 77,844.52, and the Nifty was down 4.30 points or 0.02 percent at 24,326.65. The broader markets, however, continued to outperform the benchmark indices, with the Nifty Midcap index rising 1.1% to hit a fresh high of 62,094.40, while the Smallcap index gained 0.9%.

Sectoral Performance

Selling pressure was seen in FMCG, IT, PSU Bank, and consumer durable stocks, while buying interest emerged in auto, defence, media, defence, and metal counters. On the gainers' side, HDFC Life Insurance, Bajaj Auto, Mahindra & Mahindra, Grasim Industries, and NTPC were among the top contributors on the Nifty. Meanwhile, laggards included Tech Mahindra, Hindustan Unilever, Titan Company, TCS, and ITC.

52-Week Highs

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More than 200 stocks touched their 52-week high on the BSE, including Polycab, J&K Bank, GE Vernova TD, CG Power, Hitachi Energy, Syrma SGS, Bajaj Auto, Amber Enterprises, Kirloskar Oil, HFCL, Laurus Labs, Tata Steel, Lupin, CCL Products, AB Capital, Welspun Corp, Cummins, Bank of Maharashtra, Adani Green, Aurobindo Pharma, and others.

Stock-Specific Action

Zen Technologies shares jumped 3% after the company unveiled AI-based anti-drone and laser weapon systems, while Bajaj Auto gained 2.8% after reporting record Q4 profit growth. Paytm shares added 7.8% after the company posted its first full-year net profit of ₹552 crore. IIFL Capital Services rose 6% after approving the issuance of 5.71 crore shares to FIH Mauritius Investments. Mahindra Lifespace Developers gained 3% following the launch of ‘Mahindra BeaconHill’ in Mahalaxmi, South Mumbai.

Outlook for May 8

According to Rupak De, Senior Technical Analyst at LKP Securities, the index 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.

Ajit Mishra, SVP, Research, Religare Broking, noted that markets traded volatile on Thursday and ended almost unchanged amid favourable cues. After a flat start, the Nifty oscillated within a narrow range for most of the session. Buying in select heavyweights during the middle of the session helped the index inch closer to the 24,500 mark; however, it eventually settled at 24,326.65. Sectorally, the trend remained mixed, with auto, energy, and realty stocks leading the gains, while FMCG and IT traded under pressure.