Indian stock market benchmarks ended mixed on Thursday, May 7, with the Sensex falling 114 points while the Nifty 50 closed above 24,300. According to market reports, the mixed performance was largely attributed to profit booking in select heavyweight stocks, including Hindustan Unilever Limited (HUL), Tata Consultancy Services (TCS), ITC, and Reliance Industries. Despite the benchmark decline, mid and small-cap indices posted gains of approximately 1%, indicating selective buying interest in smaller companies. The market volatility was evident throughout the session, with indices staging strong recoveries followed by profit-taking activities.
The market decline was primarily driven by profit booking in select heavyweight stocks, as reported by market analysts. These profit-taking activities were concentrated in major stocks such as HUL, TCS, ITC, and Reliance Industries, which collectively contributed to the overall benchmark decline. The selective nature of the selling pressure suggests investors were taking profits in specific large-cap stocks while maintaining interest in other market segments. Top losers included Kwality Wall's (-2.95%), HUL (-1.94%), TCS (-1.40%), Tech Mahindra (-1.27%), and Titan Company (-1.20%).
Easing crude oil prices helped offset some of the profit-taking pressure, providing support to the broader market sentiment. According to market reports, the decline in crude oil prices was partly attributed to expectations of de-escalation in US-Iran tensions, which are viewed positively for India as they reduce inflationary pressures and support economic growth. However, Brent crude prices edged higher to nearly $102 per barrel as markets continued to assess whether efforts toward a Middle East peace agreement would ultimately succeed. This positive development in global oil markets helped limit the overall market decline and provided some support to the mid and small-cap segments.
Market analysts suggest the Nifty 50 is in a consolidation phase with a positive bias, with potential to surpass resistance around 24,400. As reported by market experts, upside targets are seen at 24,600-24,800, while immediate support is positioned at 24,200. The overall market value of firms listed on the BSE rose by ₹5,99,107.83 crore, taking total market capitalisation to ₹4,72,80,559.98 crore, equivalent to nearly $4.97 trillion. Sectorally, auto, healthcare, and financial services witnessed gains, while IT and FMCG declined. The mixed performance reflects the current consolidation phase, with investors showing selective interest across different market segments while maintaining a cautious approach to major heavyweight stocks.
