Market Performance
Indian stock markets closed lower on May 6, snapping a two-day winning streak. Widespread selling, especially in PSU banks and pharma stocks, weighed heavily on investor sentiment.
- Sensex fell 155.77 points or 0.19% to close at 80,641.07
- Nifty 50 dropped 81.55 points or 0.33%, ending at 24,379.60
- Nifty Midcap 100 index slid 2.27% to 53,435
- Nifty Smallcap 100 dropped 394 points or 2.50% to 16,195
Global cues remained weak, with the S&P 500 snapping its 9-day winning streak, influencing Indian equities.
Main News
Sentiment soured following U.S. President Donald Trump's executive order to boost domestic drug manufacturing, which hit Indian pharma stocks hard. additionally, concerns over India-Pakistan tensions and anticipation surrounding the U.S. Fed policy decision added to investor caution.
Barring Nifty Auto, which remained flat, all sectoral indices closed in red. The most affected sectors included:
- PSU Banks: Down 4.84%
- Realty: Fell 3.5%
- Pharma, Consumer Durables, Media, Oil & Gas, Power: Declined between 1–2.6%
Stocks such as Adani Enterprises, Jio Financial, Trent, SBI Life, and Eicher Motors featured among the top losers on the Nifty.
Meanwhile, CCL Products India emerged as a bright spot, gaining over 15% following a strong quarterly performance.
Company Details
CCL Products India
- Reported its highest-ever Q4 revenue and profit
- Stock surged 16% on strong earnings
- Beat market expectations despite overall market weakness
Other Stock Highlights
- Cipla: Fell over 2% due to the U.S. order impacting pharma manufacturing
- Bombay Dyeing: Dropped 6% following an 82% fall in Q4 profit
- DCM Shriram: Down 2% despite a 51% rise in quarterly profit
- Indian Hotels: Lost 6%, even after a 25% jump in net profit
52-Week Highs on BSE
Over 60 stocks touched their 52-week highs, including:
Trade and Economic Updates
India has proposed zero tariffs on steel, auto components, and pharmaceuticals up to a defined import limit in its trade talks with the U.S. This comes as the U.S. hints at imminent trade deals, possibly involving India.
However, Moody's Ratings revised India's GDP growth forecast for 2025 to 6.3%, down from 6.5%, citing global policy uncertainties and trade restrictions.
Crude Oil Rebounds
In the commodities market:
- Crude oil prices rebounded after a sharp recent decline
- OPEC+ announced plans to increase output for the second month in a row
Summary of the Article
- Sensex and Nifty closed lower due to broad-based selling
- PSU banks, realty, and pharma stocks were the biggest drags
- The auto sector remained stable amid sector-wide losses
- Strong earnings from CCL Products lifted the stock by 16%
- Trade optimism between India and the U.S. continued to shape investor sentiment
- Moody's cuts India's GDP forecast, reflecting global economic concerns
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