Indian Stock Market Recap – May 5, 2025: Markets Close Higher on IT & Energy Gains, Despite Banking Drag

The Indian equity markets ended on a strong note on May 5, 2025, with both benchmark indices—BSE Sensex and NSE Nifty50—registering healthy gains. This upward momentum was largely fueled by strong performances in the IT and oil & gas sectors, underpinned by a supportive global environment, easing trade tensions, and consistent foreign portfolio investment inflows. However, banking stocks tempered the rally due to disappointing earnings from key players like Kotak Mahindra Bank and SBI.

1. Market Overview: Positive Momentum Carries Indices Higher

• BSE Sensex ended the day at 80,796.84, gaining 294.85 points or 0.37%.
• NSE Nifty50 closed at 24,461.15, up 114.45 points or 0.47%.

This positive performance came amid global cues favoring risk-on sentiment. Investors cheered news that global trade tensions between major economies, particularly the U.S. and China, had eased after fresh negotiations on tariff frameworks and technology sharing.

2. Technical Analysis: Key Levels to Watch

Nifty 50:

• Support Zones: 24,292 / 24,180
• Resistance Zones: 24,501 / 24,591

Bank Nifty:

• Support Zones: 54,996 / 54,720
• Resistance Zones: 55,498 / 55,632

Technical Outlook:
Nifty’s ability to sustain above the 24,400 mark signifies strength, particularly as it hovers close to the resistance at 24,501. A breakout above 24,591 could invite further buying, possibly pushing the index toward 24,700 in the near term. On the flip side, any dip toward 24,180 would likely attract accumulation.

Bank Nifty, however, remains in a consolidation zone due to pressure from banking heavyweights. A decisive move above 55,500 would be required to reclaim bullish sentiment.

3. Sectoral Performance: IT and Oil Shine, Banks Disappoint

Information Technology (IT):

• The IT sector posted a 1% gain, led by strong Q4 results and improved global demand.
• Key players such as TCS, Infosys, and Coforge recorded modest to significant upticks.
• Positive management commentary and robust deal pipelines contributed to investor confidence.

Oil & Gas:

• This sector rose 1.2%, supported by a drop in crude oil prices after OPEC+ announced increased output.
• Lower oil prices benefited Indian oil marketing companies (OMCs), boosting stocks like BPCL, HPCL, and IOCL.

Banking:

• The banking sector underperformed with notable declines in Kotak Mahindra Bank (-5.5%) and State Bank of India (-2%).
• Negative sentiment was driven by weaker-than-expected Q4 earnings, especially in the private sector space.

4. Key Earnings Reports: A Mixed Bag

Mahindra & Mahindra (M&M)

• Net Profit (YoY): ₹3,541.85 crore, up 13.34%
• Vehicle Sales: Up 18% YoY to 2,53,028 units
• Tractor Sales: Increased 23% YoY to 87,138 units
• Dividend: ₹25.30 per share

M&M’s robust performance was underpinned by its strong rural demand base and product innovation in SUVs and farm equipment.

Coforge

• Net Profit (YoY): ₹261 crore, up 17%
• Revenue: ₹3,409.9 crore, up 47% YoY
• Dividend: ₹19 per share

The company benefited from digital transformation demand across BFSI and healthcare sectors, alongside high client retention.

Indian Hotels Company Ltd. (IHCL)

• Net Profit (YoY): ₹522 crore, up 25%
• Revenue: ₹2,425 crore, up 27%
• Dividend: ₹2.25 per share

A rise in domestic travel and occupancy rates at premium hotels contributed to IHCL’s strong performance.

Bombay Dyeing & Manufacturing Co. Ltd.

• Net Profit: ₹11.54 crore, down 82.6% YoY
• Total Income: ₹395.47 crore, down 12.42% YoY

The company continued to face headwinds from high input costs and poor demand in the real estate and textiles segment.

5. Stock Highlights: Companies in Focus

Indraprastha Gas Ltd. (IGL)

• Announced the appointment of Rajkumar Dubey as Chairman, a move seen as strengthening governance and strategic leadership.

Ircon International Ltd.

• Secured a new order worth ₹458 crore from the North Eastern Electric Power Corporation for infrastructure works. This reaffirms its strong order book position and government partnership visibility.

Tata Motors Ltd.

• Jaguar Land Rover resumed U.S. shipments after trade restrictions were lifted. This is expected to restore sales momentum in North America, a key market.

NTPC Ltd.

• Commissioned the final 60 MW unit of its Gujarat solar project, raising group installed capacity to 80,155 MW. This reinforces NTPC’s position as India’s leading energy producer and its commitment to renewables.

NMDC Ltd.

• Reported a 15% rise in iron ore production and 3% sales growth for April 2025. This suggests strong demand recovery and operational resilience.

6. Broader Economic Context: External and Domestic Drivers

Foreign Investment:
FPIs remained net buyers, driven by India’s relative macroeconomic stability and promising Q4 earnings in select sectors.

Global Cues:

• Easing U.S.-China trade tensions reduced volatility.
• U.S. Fed’s neutral stance on interest rates also encouraged risk-on sentiment.

Geopolitical Concerns:
Investors remained cautious due to escalating Indo-Pak tensions after the Pahalgam terror attack. While it hasn’t yet impacted markets severely, prolonged unrest could increase volatility.

Crude Oil:
OPEC+’s decision to increase supply led to a drop in crude prices, benefiting Indian importers and aiding inflation control.

Rupee Movement:
The Indian Rupee strengthened modestly against the USD, reflecting positive capital inflows and lower crude import bills.

7. Expert Viewpoints

• Technical Analysts see Nifty facing immediate resistance near 24,500, with a potential breakout eyeing 24,700. Failure to sustain above 24,180 could trigger profit booking.
• Fund Managers are bullish on IT, energy, and auto sectors but cautious on banking and real estate due to margin pressure.
• Retail Investors are advised to use dips to accumulate fundamentally sound stocks, especially after results season reveals sectoral strength.

8. Investment Strategy: Where to Look Next

Top Gainers to Watch:

• Coforge: Strong growth trajectory in digital services
• M&M: Riding rural and EV momentum
• NTPC: Attractive in the green energy push

Stocks Under Pressure:

• Kotak Mahindra Bank: May remain weak unless earnings improve
• Bombay Dyeing: Needs structural turnaround

Themes to Watch:

• Green Energy: NTPC, Tata Power
• Auto Recovery: M&M, Tata Motors
• IT Exports: Coforge, HCL Tech
• Tourism & Leisure: IHCL, EIH

9. What Lies Ahead

Key Triggers This Week:

• Quarterly results from SBI, HDFC, and Hindustan Unilever
• U.S. Non-farm payroll data and Fed commentary
• Inflation numbers from India and China

Market Sentiment Drivers:

• Geopolitical clarity
• Monsoon forecast updates
• Global commodity price trends

Conclusion: A Balanced Market with Opportunities and Cautions

The Indian stock market ended May 5, 2025, on a firm footing, buoyed by strong corporate earnings in IT and energy. The optimism was further supported by global developments that reduced near-term risks. However, investor sentiment remains vulnerable to geopolitical shocks and uneven sectoral performance—especially in banking.

Going forward, a sector-specific and fundamentally driven approach will likely outperform a broad-based strategy. Earnings momentum, particularly in auto, energy, and IT, should offer short-term trading opportunities. Long-term investors should continue focusing on structural growth themes and use volatility to build positions in quality stocks.

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