Stock Market Today: Tata Motors Surges, BSE Soars 10%

Indian equity markets show cautious hope as they navigate through geopolitical pressures and earnings-related stock shifts. The BSE Sensex has dropped 84.70 points to 80,556.37. Meanwhile, the NSE Nifty 50 has fallen 20.25 points to 24,359.35. Early market sentiment faced strain from global political events, but by midday, attention seemed to settle more on company reports and economic factors.

Morning Sentiment Shaped by Global Issues

India's equity benchmarks start the day after its military launched 'Operation Sindoor' aimed at several terror camps in Pakistan and Pakistan-occupied Kashmir. The strikes serve as a response to the recent terror attack in Pahalgam, Jammu & Kashmir, which caused civilian deaths.

The market's initial reaction shows worries about escalation and unrest in the region. But the operation's focused approach and no signs of immediate further conflict ease some concerns. Investors start adjusting to a scenario with controlled geopolitical risks helping stocks rebound from earlier losses. Public sector and defense stocks show mixed movement, with some gaining as traders begin considering higher defense spending.

How Sectors Are Performing

Different segments of the market show mixed results, with some sectors holding strong and others seeing profit-taking and shifts in focus.

Automobiles: The auto industry tops the list of gainers. Tata Motors jumps more than 4% after announcing plans to split into two distinct listed entities. One will focus on commercial vehicles while the other will handle passenger vehicles. Investors feel more optimistic due to progress on the India-U.K. trade deal, which could boost export opportunities for automakers.

Banking and Financials: The Nifty Bank index stays positive as select private banks see buying interest. IDFC First Bank, ICICI Bank, and Kotak Mahindra Bank post significant gains. Foreign investors continue to show high interest in the sector because of its solid asset quality and the forecast of better credit growth by FY26.

Mid and Small Caps: Broader markets perform better than the benchmark indices, with the BSE Midcap and Smallcap indices rising 0.5%. Export-focused companies like Gokaldas Exports and KPR Mill rally due to hopes for stronger textile demand and fewer import duties from trade agreements.

FMCG: The Nifty FMCG index struggles today dropping about 0.50% as investors lock in gains after April's sharp rally. Stocks such as Hindustan Unilever, Britannia, and ITC hurt the index, with rising input costs and sluggish rural demand causing concern.

IT Sector: Shares of tech companies move sideways, with no strong direction. Investors wait to see global signals and the next earnings reports from mid-sized IT players. Big names like TCS and Infosys face slight losses as weak global tech spending creates uncertainty.

Stock-Specific Movers

BSE Ltd.: The stock of India’s premier stock exchange surges nearly 10% after the company reports a multi-fold increase in Q4 net profit to ₹494 crore. Strong growth in trading volumes, higher average daily turnover, and improved operational leverage boost investor confidence.

Paytm (One 97 Communications): Shares of the fintech major rise nearly 6% as the company indicates a potential turnaround to profitability in the ongoing quarter. Strategic cost-cutting, expanding loan distribution business, and improving user monetization contribute to the positive outlook.

Titan Company: The lifestyle and jewellery major sees a rise of over 1.5%, continuing its bullish trend following a robust Q4 update that reflects strong demand for premium watches and gold jewellery, especially during the wedding season.

Sun Pharma and Asian Paints: Both stocks decline on concerns of margin compression. Sun Pharma sees profit-taking after its Q4 numbers fail to excite, while Asian Paints dips as raw material cost pressures and weaker-than-expected decorative segment growth weigh on outlook.

Foreign Investment and FII Activity

Foreign Institutional Investors (FIIs) remain net buyers in Indian equities, continuing the trend observed in April. FIIs have infused more than ₹18,400 crore into Indian markets last month, with a strong preference for banking, financial services, and consumer-facing sectors. The optimism stems from India's robust GDP projections, improving macroeconomic stability, and consistent earnings growth potential across key sectors.

FIIs show renewed interest in midcap and thematic funds as well, suggesting a higher risk appetite and belief in India’s long-term consumption and manufacturing story. Domestic institutional investors (DIIs), including mutual funds and insurance companies, continue to provide stable support to the market, helping absorb any short-term volatility.

Technical Outlook and Chart Analysis

Technically, the Nifty 50 is exhibiting a rising wedge pattern on daily charts, typically a signal of possible trend reversal or consolidation. Immediate support is observed around the 24,170 zone, while resistance lies in the 24,550–24,600 region. Analysts highlight that a breach below 24,150 could trigger further downside toward the 24,000 mark. Conversely, a breakout above 24,600 may open up upside potential toward 24,800.

Momentum indicators such as RSI (Relative Strength Index) remain in neutral territory, reflecting market indecision. Traders are advised to maintain a stock-specific approach, especially in light of earnings season and ongoing geopolitical developments.

Global Market Cues

Asian markets trade mixed today as investors weigh U.S. Federal Reserve commentary, upcoming U.S. jobless data, and concerns over China’s property sector. The Hang Seng Index trades marginally higher, while Nikkei 225 is under pressure amid profit booking. European futures point to a flat opening as geopolitical events in South Asia draw attention from global investors.

The U.S. dollar remains firm against emerging market currencies, including the Indian Rupee, which is currently trading at 83.12 per dollar. Crude oil prices ease slightly after spiking on war-related tensions, providing temporary relief to oil-importing countries like India.

Summary of Key Movers 

Top Gainers:

Tata Motors: +4.08% – Gains on strategic demerger and global sentiment

Titan Company: +1.59% – Buoyed by strong Q4 growth

Power Grid Corporation: +1.43% – Benefits from defensive buying

Top Losers:

Sun Pharma: -1.57% – Post-earnings decline

Asian Paints: -1.20% – Margin concerns

ITC Ltd.: -0.95% – Weakness in FMCG segment

Midway through the trading session on May 7, 2025, Indian stock markets reflect a balanced mood, digesting both geopolitical developments and domestic earnings updates. While external tensions briefly weigh on sentiment, strong corporate performance and consistent foreign investment lend resilience to the indices.

Broader markets outperform large-caps, signaling underlying strength in select pockets. Investors maintain a stock-specific strategy with a close watch on macroeconomic data, global signals, and earnings commentary from heavyweight companies.