Stock Market Today: Sensex Falls 220 Points, Nifty50 Below 24,400

FIIs cautious ahead of PMI data and key earnings from Paytm and others

Indian stock exchanges reopen on a cautious note owing to uncertainties at the global level and the very existence of domestic economic data. May 6, 2025, Tuesday witnessed the early downward trades of the two benchmark indices- BSE Sensex and NSE Nifty50, weighed down by the weak global cues, tariff-related malignancies, and jittery investors for the onslaught of earnings this week. 

The BSE Sensex is down yet another 224.27 points or 0.28%, fastening at 80,572.57, while Nifty50 trades lower by 79.85 points or 0.33% at 24,381.30. This healthy weakness and booking sentiment extend even to the broader markets comprising mid-caps and small-caps.

Global Cues Sour Market Sentiment 

The fall in Indian equities is in line with the mixed signals from global markets. Investors remain very uneasy about the US Administration's stance on tariffs and might seriously consider imposing new levies on imports from China. The developments, hence, resurrect fears of a trade war across the globe and bring into play a speedy flight-to-safety scenario among major markets.  

Asian indices are mostly in the red, led by weakness in the Hang Seng and Nikkei, while U.S. futures remain cautiously optimistic ahead of the FOMC meeting slated to begin later today. Central banks find themselves on a very fine line as global interest rates remain at elevated levels and inflation shows no signs of abating in the key economies, trying to support growth on the one side, and rein in prices on the other. 

Domestic Focus: Services PMI, FIIs, and Q4 Earnings

Back home, investors are keeping a close watch on the final Services PMI data for April, which is expected to provide a clearer picture of the services sector’s momentum. Preliminary readings suggested stable growth, but any surprise to the upside or downside could influence near-term positioning. 

Additionally, attention remains on the trading activity of Foreign Institutional Investors (FIIs), who have recently turned net buyers in the Indian equity markets. However, any reversal in flow due to global volatility may pose short-term headwinds. 

The corporate earnings season also picks up pace this week, with notable companies such as One 97 Communications (Paytm) and Hindustan Petroleum Corporation Ltd (HPCL) scheduled to report their Q4 results today. The market is closely monitoring these outcomes for cues on profitability, margin trends, and management commentary for FY26. 

According to Karthikraj Lakshmanan, Senior Vice-President and Equity Fund Manager at UTI AMC, there could be downward revisions in FY26 earnings growth projections due to macroeconomic uncertainties, tight liquidity, and elevated input costs. He notes that a few percentage points may be shaved off from current consensus estimates depending on how the June quarter unfolds. 

Ather Energy’s Muted Stock Market Debut 

Electric vehicle (EV) startup Ather Energy makes a lukewarm debut on the Indian bourses today. On the BSE, shares of Ather opened at ₹326.05 apiece, representing a modest premium of 1.77% over its IPO price of ₹321. On the NSE, the stock was listed at ₹326.10, up 1.59% from the issue price. 

Market participants expected a better listing given the brand recognition and EV sector momentum, but broader market conditions and valuation concerns appear to have tempered debut enthusiasm. Analysts are now keenly watching post-listing price action to assess the stock’s near-term support and resistance levels. 

Sectoral Snapshot: Pressure Across the Board 

At the sectoral level, most key indices are trading in the red. Here's a closer look: 

Financials and Banks 

Banking stocks are witnessing mild selling pressure. The Nifty Bank index is down, led by profit-taking in large private banks such as ICICI Bank, Axis Bank, and Kotak Mahindra Bank. Investors await more Q4 financial results from the banking sector to reassess credit growth momentum and provisioning trends. 

Information Technology 

IT stocks are largely flat to negative, tracking overnight cues from Nasdaq. Concerns about weak discretionary spending in the U.S. tech space continue to limit the upside in Indian IT majors like TCS, Infosys, and HCLTech. 

Automobiles 

Auto stocks are trading mixed. While Mahindra & Mahindra is showing gains on the back of a positive outlook and improved margins, others like Tata Motors and Maruti Suzuki are range-bound ahead of their earnings. Demand momentum, especially in rural markets, will remain a key factor for valuations in this sector. 

Energy, Oil & Gas 

The Oil & Gas index is under pressure as crude oil prices hover near multi-week highs. HPCL, BPCL, and ONGC are facing selling as investors weigh the impact of elevated input costs on refining margins. HPCL is also on the radar ahead of its Q4 earnings release later in the day. 

Pharmaceuticals 

The pharma index is trading lower amid weakness in export-oriented names. Global regulatory scrutiny and muted earnings guidance from U.S. peers are weighing on investor sentiment. 

Currency and Commodities 

The Indian Rupee is trading at 84.35 against the U.S. Dollar in early trade, down 5 paise from the previous close. Currency traders remain cautious ahead of the Fed’s policy decision and any movement in crude oil prices. A stronger dollar index is also keeping pressure on emerging market currencies, including the Rupee. 

In the commodities segment, gold and silver prices are steady after last week’s volatility, as traders await cues from the FOMC and any updates on inflation projections. Crude oil is trending slightly higher, supported by supply constraints and continued demand from Asia. 

Market Breadth and Technical Indicators: 

With over 1,500 stocks falling compared with around 750 rising, stock breadth remains negative on the NSE. Volatility remains modest with the India VIX hovering around 13.5, up 2% intraday, mildly signifying risk-off sentiment.  

On a technical note, the Nifty will face immediate resistance near 24,500 and at 24,200 on the downside. Any breach of 24,200 will further induce selling towards 24,000. On the upside, a clear move and close above 24,600 will re-energize the bulls. 

Institutional Activity 

Institutional flows play an important role in setting the day's trend: 

FIIs: In the recent past, they appeared to be net buyers, but volumes will remain thin, probably until after the US Fed's commentary. 

DIIs: Continue to support the market, cushioning the weakness in the large-cap names and showing an interest in some FMCG and financial counters.

Outlook for the Day 

Since the global cues are beyond a mix, with a cautious weathered backdrop, Indian Equities should remain confined within a range for the session. The corporate earnings, macroeconomic data, along institutional activity will remain firmly in focus. Intraday volatility will most likely pick up toward the latter part of the day as traders begin positioning themselves ahead of the final rates outlook by the Fed. 

Investors are, therefore, advised to stick to a stock-specific approach and refrain from aggressive trades until the roadmap on the economic policy front becomes clearer. Defensive sectors such as FMCG and utilities may draw some attention, while high-beta sectors could continue to be jittery. The Indian stock market on May 6, 2025, reflects a cautious yet resilient mood as investors navigate a complex interplay of global tariff fears, domestic economic data, and the ongoing earnings season.  

With major indices trading in the red and sectoral rotation evident, the day’s session underscores the importance of data-driven strategies and dynamic asset allocation. The outcome of today’s FOMC meeting and corporate results from high-profile names like Paytm and HPCL are expected to set the tone for the rest of the week. As market participants balance short-term volatility with long-term opportunities, careful stock selection and macro awareness remain paramount.