Markets weather geopolitical storm to close with marginal gains
The Indian market is unlikely to react significantly to the retaliatory strike as it was anticipated and already factored into the market pricing, said Vijayakumar of Geojit Investments
On Wednesday (May 7), after the Indian military’s air strikes on terror targets, the stock markets had a volatile session, but ended the day with modest gains after seeing early losses. The BSE Sensex edged up 105.71 points to close at 80,746.78 (+0.13 per cent), while the NSE Nifty 50 rose 34.80 points to finish at 24,414.40 (+0.14 per cent). The trading session opened on a tense note as investors reacted to news of "Operation Sindoor”, India's military response to the Pahalgam terror attacks on April 22.
Also Read: Sensex, Nifty see high volatility after India avenges Pahalgam attack
The broader market indices followed a similar trend. The Nifty Midcap index rose 0.59 per cent, and the Nifty Bank index ended 0.38 per cent higher.
‘Strikes were anticipated’
“What distinguishes ‘Operation Sindoor’ from a market standpoint is its precise and non-escalatory execution,” said VK Vijayakumar, chief investment strategist, Geojit Investments, adding that the Indian market is unlikely to react significantly to the retaliatory strike, as it was anticipated and already factored into the market pricing.
The Nifty Auto index stood out with a 0.97 per cent gain, ending the day at 22,959.05. Among the top performers, Tata Motors led the way with a 5.18 per cent surge, closing at ₹681.80, after it reported a fourth-quarter profit of ₹318 crore, up nearly six-fold from ₹55 crore last year. Other notable gainers included Jio Financial Services (+2.11per cent), Bajaj Finance (+2.04 per cent), Shriram Finance (+1.85 per cent), and Eternal (+1.65 per cent).
Also Read: Pakistan discusses next course; PM Sharif to address parliament
On the downside, Asian Paints (-3.5 per cent) and Sun Pharma (-2 per cent) stocks fell.
‘Three catalysts for markets’
“Markets now hinge on three catalysts: further military action, global tariff progress, and the US Fed’s policy decision on May 7,” said Prashanth Tapse, senior vice president of research at Mehta Equities.
In corporate earnings, BSE Ltd. reported a near five-fold increase of fourth-quarter profit to ₹494 crore; Hindustan Petroleum Corporation Ltd. (HPCL) saw a 26 percent increase in net profit to ₹3,415 crore, while Godrej Consumer Products Ltd swung back to profit with ₹411.9 crore in fourth-quarter profit compared to a loss the previous year.
Also Read: Indian military strikes at heart of Pakistan’s terror infrastructure
Paytm narrowed its net loss to ₹540 crore, while Mahanagar Gas Ltd saw a 5 per cent decline in net profit to ₹252.2 crore.
