Did Sensex and Nifty Rise After 'Operation Sindoor'?
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Synopsis
On May 7, Indian stock markets showed resilience amid high volatility, with both Sensex and Nifty closing in positive territory. Key sectors like auto and real estate led the recovery, while geopolitical concerns and global trade dynamics played a role in market movements. This article delves into the trading strategies and performances that shaped the market's outcome.
Key Takeaways
- Sensex closed at 80,746, gaining 105 points.
- Nifty reclaimed the 24,400 mark, closing at 24,414.
- Key sectors like auto, real estate, and metals supported market recovery.
- Overall market sentiment is relatively stable with a Put-Call Ratio of 0.98.
- Broader indices bounced back strongly after prior losses.
Mumbai, May 7 (NationPress) Despite significant fluctuations during the trading session on Wednesday, Indian stock markets managed to close positively. The Sensex recovered from its initial setbacks, finishing with a gain of 105 points, or 0.13 percent, at 80,746.
Likewise, the Nifty concluded the intra-day trading with a slight increase of 0.14 percent at 24,414, successfully reclaiming the essential 24,400 mark.
"In terms of Nifty, the highest open interest on the call side is focused on the 24,500 and 24,400 strike prices, while the put side shows significant open interest at 24,300 and 24,400," noted Sundar Kewat of Ashika Institutional Equity.
The Put-Call Ratio (PCR) stands at 0.98, reflecting a relatively stable market sentiment, he added.
The markets opened weakly, with initial losses fueled by regional uncertainties. However, as the day unfolded, confidence returned.
This recovery was bolstered by decreasing global trade tensions, the finalization of a free trade agreement (FTA) with the United Kingdom, and robust foreign investments, which helped mitigate concerns related to rising geopolitical tensions between India and Pakistan.
Support from crucial sectors like auto, real estate, and metals contributed to the indices' recovery, creating a positive atmosphere by mid-session.
Tata Motors spearheaded the rally on the Sensex with a notable increase of 5.2 percent, followed by Bajaj Finance, which rose by 2.02 percent.
Eicher Motors climbed 1.41 percent, corresponding with gains from Adani Ports, while Titan added 1.27 percent.
Other significant gainers on the index include Eternal (formerly Zomato), Mahindra and Mahindra, Tata Steel, and several others.
On the downside, Asian Paints faced the steepest decline, dropping 4 percent. Sun Pharma fell by 1.95 percent, ITC declined by 1.3 percent, Nestle India dropped 1.06 percent, and Reliance Industries slipped by 1.01 percent.
The broader markets displayed substantial recovery. After experiencing significant losses in the prior session, both the Nifty Midcap 100 and Nifty Smallcap indices rebounded sharply, each reporting gains of approximately 1.5 percent.
Among the sectoral indices, all sectors concluded in the green, except for FMCG, pharma, and healthcare.
Leading the advancements were auto, media, realty, and consumer durables, each rising over 1 percent.
Meanwhile, market volatility remained high as the India VIX—known as the fear index—rose by 3.58 percent to close at 19.
Point of View
I recognize that the Indian stock market remains resilient, showcasing its ability to recover from fluctuations. The recent gains in the Sensex and Nifty reflect not only local market dynamics but also the influence of global economic factors. Our commitment at NationPress is to provide clear, unbiased coverage that informs and empowers our readers.
NationPress
25/06/2025
Frequently Asked Questions
What factors contributed to the rise of Sensex and Nifty?
The rise was driven by easing global trade tensions, a finalized free trade agreement with the UK, and strong foreign inflows, alongside recoveries in key sectors like auto and real estate.
How did geopolitical tensions affect the market?
While geopolitical tensions between India and Pakistan initially created uncertainty, positive market sentiment returned as confidence grew throughout the trading session.
What sectors performed best during this trading session?
The auto, media, realty, and consumer durables sectors saw the highest gains, helping to drive the overall recovery of the indices.
What does the Put-Call Ratio indicate?
A Put-Call Ratio of 0.98 suggests a balanced market sentiment, indicating that both buyers and sellers are active in the market.
What was the performance of broader market indices?
After previous significant losses, the Nifty Midcap 100 and Nifty Smallcap indices rebounded sharply, each showing gains of around 1.5 percent.
