Sensex News, Nifty News: Indices End Higher Despite India-Pak Tensions; Investors Eye US Fed

Market Overview

Sensex and Nifty closed slightly higher on May 7, 2025, even as geopolitical tensions between India and Pakistan added a layer of uncertainty. The Sensex rose by 105.71 points or 0.13% to 80,746.78, while the Nifty gained 34.80 points, up 0.14%, ending at 24,414.40.

• Advances: 2,121 stocks
• Declines: 1,620 stocks
• Unchanged: 149 stocks

Sensex News reflects a cautious but resilient market tone today, as investors look ahead to the upcoming US Federal Reserve policy meeting for cues on inflation and interest rate direction.

Main News: Geopolitical Tensions vs Market Resilience

The session began on a weak note after India launched missile strikes under "Operation Sindoor", targeting nine militant camps in Pakistan-administered Kashmir. This was in response to the April 22 Pahalgam attack that killed 26 Indian tourists.

Despite this military escalation, markets recovered during the day, supported by easing global trade tensions and the recent India–UK Free Trade Agreement (FTA). This geopolitical calmness and solid foreign inflows helped steady investor sentiment.

Foreign Investment Boosts Confidence

• FIIs have invested ₹43,900 crore in Indian equities across 14 straight trading sessions
• Global cues, such as China's interest rate cut and revival of US-China trade talks, have bolstered regional sentiment

Sectoral Highlights

Gainers:

• Nifty Auto: +1.66% (Top performer)
• Nifty Realty: +1.12%
• Nifty Metal: +0.98%
• Nifty PSU Bank: +0.29%

Losers:

• Nifty FMCG: -0.52% (Worst performer)

The auto and realty sectors led the recovery, while FMCG stocks faced mild selling pressure.

Company & Sector Impact

Textile Stocks Rally

Investor interest surged in textile counters following the signing of the India–UK Free Trade Agreement, which is expected to open new export opportunities for Indian textile firms. This lifted overall sentiment in the manufacturing and export-oriented sectors.

Summary

The Sensex News and Nifty News highlight a market that continues to show resilience despite geopolitical tensions. Supported by strong FII inflows, positive global sentiment, and favorable trade agreements, Indian equities closed in the green.

With attention now turning to the US Federal Reserve's policy announcement, markets are expected to remain range-bound in the short term. However, India's domestic economic strength and investor optimism remain strong drivers amid global uncertainties.