Midday Update: Sensex Slips 600 Points from High, Nifty 50 Below 24,100 Despite Early Gains on May 6

Market Update at 12:36 PM: Benchmark indices pared most of their early gains on May 6 after opening on a strong note, as selling pressure at higher levels weighed on the market.

At 12:06 pm, the Sensex was up 63.39 points or 0.08 per cent at 77,081.18, while the Nifty 50 rose 51.05 points or 0.21 per cent to 24,083.85. Market breadth remained positive, with about 2,350 shares advancing, 1,316 declining, and 158 remaining unchanged.

However, the indices came off sharply from their Intraday highs. The Sensex dropped nearly 600 points from its peak of 77,675.01, while the Nifty 50 slipped below the 24,100 mark after hitting a high of 24,250.85.

Sectorally, performance was mixed. The Nifty Pharma index emerged as the top gainer, rising 1.7 per cent. On the other hand, the Nifty FMCG and Nifty Energy indices were among the worst performers, declining 0.6 per cent and 0.5 per cent, respectively. Broader markets outperformed the benchmarks, with midcap and smallcap indices gaining around 1 per cent.

Within the Nifty 200 index, Coforge stood out as the top gainer, rising 9 per cent and maintaining strong momentum. Shares of SRF also surged 6 per cent after the company reported better-than-expected March quarter earnings. Investors are now awaiting management commentary during the post-earnings call for further clarity.

On the downside, Siemens Energy was the biggest laggard in the index, falling nearly 4 per cent.

Overall, despite a positive start, the market witnessed profit booking at higher levels, leading to a sharp pullback in headline indices.

Market Update at 09:40 AM: Indian equity markets opened on a positive note on Wednesday, May 6, supported by strong corporate earnings and easing crude oil prices amid optimism over a potential peace deal between the U.S. and Iran.

The Nifty 50 rose 0.58 per cent to 24,171 as of 9:15 a.m. IST, while the BSE Sensex gained 0.53 per cent to 77,424.36. Broader markets outperformed the benchmarks, with the Small-Cap index rising 0.87 per cent and the Mid-Cap index advancing 0.97 per cent.

All major sectoral indices traded in positive territory, reflecting broad-based buying interest across the market.

Investor sentiment was lifted after U.S. President Donald Trump संकेतित that a peace agreement with Iran could be قريب, which helped ease geopolitical tensions. This development led to a decline in crude oil prices, with Brent crude falling to around USD 108 per barrel from approximately USD 115 earlier this week.

The drop in oil prices followed Trump's announcement to pause "Project Freedom," an initiative aimed at escorting ships through the Strait of Hormuz, citing significant progress in negotiations with Iran. However, Tehran has not yet officially responded to these developments.

On the stock-specific front, Hero MotoCorp gained 2.6 per cent after reporting better-than-expected March quarter results, driven by strong domestic demand.

Coforge surged 8 per cent after its fourth-quarter profit more than doubled, supported by increased order inflows.

In contrast, Larsen & Toubro declined 2 per cent after reporting a drop in quarterly profit, impacted by disruptions to its projects in the Middle East due to ongoing geopolitical tensions.

Pre-Market Update at 7:44 AM: The Indian benchmark indices, Sensex and Nifty 50, are expected to open on a positive note on Wednesday, May 6, supported by a strong global market rally driven by optimism over a potential U.S.–Iran peace agreement. Gift Nifty hovered around the 24,323 mark, trading at a premium of about 226 points compared to the previous close of Nifty futures, indicating a gap-up opening of over 200 points for domestic markets.

Global cues remain supportive, with Asian markets advancing and U.S. equities closing higher overnight. Both the S&P 500 and Nasdaq ended at record highs, reflecting strong investor sentiment.

From a geopolitical perspective, developments in the U.S.–Iran situation remain a key trigger. Donald Trump announced a temporary pause in “Project Freedom,” an operation aimed at escorting ships through the Strait of Hormuz. He highlighted “significant progress” toward a broader agreement with Iran, suggesting the pause is intended to allow time to finalize and sign the deal, even as the blockade remains in place.

On the macroeconomic front, U.S. job openings declined slightly in March. According to the JOLTS report, vacancies fell by 56,000 to 6.866 million, slightly above economists’ expectations of 6.835 million. The job openings rate edged lower to 4.1 per cent from 4.2 per cent in February. Meanwhile, the ISM Non-Manufacturing PMI for April came in at 53.6, marginally below expectations of 53.7, indicating steady but slightly slower expansion in the services sector.

U.S. Treasury yields moved lower alongside declining crude oil prices. The 10-year yield dropped 3 basis points to 4.416 per cent, the 30-year yield fell 4 basis points to 4.985 per cent, and the 2-year yield slipped 2.4 basis points to 3.938 per cent. The U.S. dollar also weakened, with the dollar index dipping to 98.299.

Crude oil prices declined on optimism surrounding a potential peace deal. Brent crude for July fell 1.38 per cent to USD 108.35 per barrel after a 4 per cent drop in the previous session, while WTI crude for June decreased 1.47 per cent to USD 100.77, following a 3.9 per cent decline earlier.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 0.95. On the Put side, significant open interest is concentrated at the 24,000 strike, indicating strong support levels. On the Call side, heavy open interest at the 24,500 strike suggests this level may act as a strong resistance. Additional out-of-the-money positions also reinforce resistance around 24,500.

Technically, the Nifty 50 faces immediate resistance near its 50-day moving average at 24,078. A stronger resistance zone is placed between 24,300 and 24,350, where a decisive breakout could trigger further upside momentum. On the downside, key support lies in the 23,790–23,880 range. A breakdown below this zone may lead to further correction towards 23,405, which marks the 50 per cent Fibonacci retracement level. Overall, the index is expected to remain range-bound between 23,800 and 24,300 unless a clear breakout or breakdown occurs.

Key companies reporting results on May 6 include Bajaj Auto Limited, Brigade Enterprises Limited, Blue Star Limited, Godrej Consumer Products, Hexaware Technologies, Meesho, One 97 Communications, Shree Cement, Radico Khaitan, and Raymond Lifestyle.

In derivatives, no stocks are under the F&O ban for the day.

Institutional activity showed mixed trends on May 5. Foreign Institutional Investors (FIIs) were net sellers, with equity buying worth Rs 3,621.58 crore, while Domestic Institutional Investors (DIIs) also purchased shares totaling Rs 2,602.62 crore.

On Tuesday, Indian markets ended lower due to profit booking in Banking and financial stocks. The Sensex declined 251.61 points, or 0.33 per cent, to close at 77,017.79, while the Nifty 50 fell 86.50 points, or 0.36 per cent, to settle at 24,032.80.

On Wall Street, U.S. markets ended higher, with the Dow Jones Industrial Average rising 0.73 per cent to 49,298.25. The S&P 500 gained 0.81 per cent to close at 7,259.22, while the Nasdaq advanced 1.03 per cent to 25,326.13. Among stocks, Nvidia declined 1.03 per cent, while AMD rose 4.02 per cent and surged 16.54 per cent in after-hours trading. Intel jumped 12.95 per cent, Apple gained 2.64 per cent, Amazon edged up 0.53 per cent, while Microsoft and Tesla declined 0.55 per cent and 0.83 per cent respectively.

In commodities, gold prices rallied on a weaker dollar and easing inflation concerns. Spot gold rose 1.3 per cent to USD 4,617.19 per ounce, while spot silver surged 2.4 per cent to USD 74.60 per ounce.

Disclaimer: The article is for informational purposes only and not investment advice.

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