The BSE Sensex closed at 80,334.81, down by 411.97 points or 0.51%. Similarly, the NSE Nifty50 dropped 140.60 points, or 0.58%, settling at 24,273.80.
These declines were mainly influenced by the geopolitical situation, with India and Pakistan tensions escalating. The announcement of this military action heightened uncertainty in the markets, which led to a sell-off in the final hour of trading.
The Midcap and Smallcap indices were hit particularly hard, with Nifty Midcap 100 down by 1.95% and Nifty Smallcap 100 declining by 1.43%.
You may also like: Avoid These Money Mistakes Before You Retire
Impact on the stock market
Looking at the sectoral performance, it was a broadly negative day for the market. All sectors, except for IT and Media, ended lower.
- The Nifty Metal index was the biggest loser, falling 2.09%.
- Other sectors like Auto, Energy, FMCG, Realty, Pharma, Oil & Gas, and Consumer Durables each saw losses of more than 1%.
| Sector/Index | Performance |
| IT & BPM sector | 0.23% |
| Healthcare sector | -1.95% |
| Oil & Gas sector | -1.44% |
| Real estate sector | -2.47% |
| PSU Bank in India | -1.35% |
Top gainers today
| Company | Price (in ₹) | Change % |
| HCL Tech Share Price | 1,580.70 | 1.11 |
| Axis Bank Share Price | 1,172.20 | 0.94 |
| Titan Company Share Price | 3,369.30 | 0.91 |
| Kotak Mahindra Share Price | 2,112.60 | 0.84 |
| Coal India Share Price | 385.45 | 0.56 |
Top losers today
| Company | Price (in ₹) | Change % |
| Shriram Finance Share Price | 615.80 | -3.27 |
| Eternal Share Price | 229.81 | -2.99 |
| Adani Enterpris Share Price | 2,285.30 | -2.88 |
| M&M Share Price | 3,033.10 | -2.78 |
| TATA Cons. Prod Share Price | 1,116.00 | -2.6 |
Market aftermath: Impact on stocks
Gokaldas Exports and Arvind Ltd. – Beneficiaries of the UK-India FTA
One of the key developments on May 7 was the announcement of the Free Trade Agreement (FTA) between India and the UK. This deal is set to benefit India’s textile sector, and stocks like Gokaldas Exports Ltd., Arvind Ltd., and KPR Mill Ltd. have seen a substantial boost, with shares rising nearly 19% on the day of the announcement. This FTA eliminates tariffs that have long been a barrier for Indian textile exporters in the UK market.
The Indian textile sector is valued at over $20 billion in exports, and the FTA significantly improves India’s position in the UK market. However, despite this optimism, fund managers remain cautious, awaiting more clarity before making significant investments in the sector.
Also read: Arvind Share Price Soars as Phillip Capital Issues ‘Buy’ Call
Torrent Pharmaceuticals – Decline in share price
On the other hand, Torrent Pharmaceuticals saw its share price fall by 3.04% today, dropping to ₹3,193.90. This decline comes amid concerns about the company’s financial performance. Although Torrent Pharmaceuticals is a key player in the Nifty Next 50 and Nifty 100 indices, today’s performance reflected investor caution.
A closer look at Torrent’s financials reveals that the company has experienced fluctuations in net profit, with a more significant drop in its P/E ratio, which stood at 53.14x in March 2024, compared to 41.78x in the previous year. This decline in share price indicates investor concern over its financial performance, particularly in terms of profitability.
Kalyan Jewellers – Strong Q4, but stock reacts poorly
In a positive development for Kalyan Jewellers, the company reported a 36% jump in net profit for Q4 FY25, reaching ₹ 187.61 crore. The company also announced a dividend of ₹ 1.5 per share. However, despite the solid earnings report, Kalyan Jewellers’ stock fell by nearly 3% on May 8, closing at ₹ 508.95 per share.
The market’s reaction can be attributed to the overall bearish sentiment, despite the company’s strong financial performance. Investors seem to be focusing more on broader market conditions rather than individual stock performance, which is why even positive results were unable to lift the stock price.
Crude Oil – Ongoing impact of Geopolitics and Tariffs
Turning to global commodities, crude oil prices saw a slight rise after a recent slump. Brent crude climbed towards $62 a barrel, recovering from a 1.7% drop in the previous session. Similarly, West Texas Intermediate (WTI) traded above $58.
The rebound came after US President Donald Trump signalled a potential trade deal with an undisclosed country. Trump’s announcement followed increasing concerns about the impact of tariffs on global growth, especially in light of OPEC+ decisions to boost output and the uncertain political climate surrounding international trade agreements.
Crude oil prices have been volatile, and the political uncertainty—especially surrounding the US and China’s trade relations—has been a contributing factor. Despite this, oil inventory data from the US shows a decline in crude stockpiles, adding to the complexity of the situation.
Conclusion
As we move forward, geopolitical tensions, especially between India and Pakistan, remain a significant concern for the markets. While the Indian stock market was impacted by these tensions, the broader trends in the textile and oil sectors offer some optimism. However, it’s clear that investors are taking a wait-and-see approach, with caution in sectors like pharmaceuticals and paints.
In the short term, the stock market’s performance will likely be influenced by international developments, such as the outcome of the US-China trade talks and the progress of the India-UK FTA. For now, it’s important for investors to stay informed and focus on both the opportunities and risks presented by these global and domestic shifts.
For more stock market insights, check out the StockGro blog.
