The headline equity benchmarks witnessed sharp declines in early trade as escalating tensions between India and Pakistan'intensified by the ongoing Operation Sindoor'kept investors on edge. Market sentiment is likely to remain volatile in the near term, driven by uncertainty surrounding geopolitical developments and upcoming U.S. trade policy updates. The Nifty traded below the 24,100 level.
Barring the Nifty consumer durables index, all the other sectoral indices on the NSE traded in red.
At 09:30 IST, the barometer index, the S&P BSE Sensex slipped 547.77 points or 0.68% to 79,787.04. The Nifty 50 index declined 186.60 points or 0.77% to 24,087.20
In the broader market, the S&P BSE Mid-Cap index fell 0.70% and the S&P BSE Small-Cap index dropped 1.47%.
The market breadth was weak. On the BSE, 423 shares rose and 2,466 shares fell. A total of 87 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth 2,007.96 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 596.25 crore in the Indian equity market on 8 May 2025, provisional data showed.
India-Pakistan Tensions Escalate:
Amid rising tensions with Pakistan, India has ramped up security in New Delhi by deploying additional forces and intensifying police surveillance. The move follows India's successful neutralization of multiple Pakistani drone and missile attacks targeting military sites in Jammu, Pathankot, and Udhampur, along with similar threats in 15 other northern and western locations. No casualties were reported.
A major infiltration attempt along the International Border in Samba was also foiled. Meanwhile, Pakistan conducted heavy shelling along the Line of Control in Poonch, Rajouri, Uri, and Chowkibal Kupwara, resulting in property damage and the reported death of a woman in Uri. The developments come in the aftermath of the April 22 Pahalgam terror attack, which claimed 26 lives.
Stocks in Spotlight:
Titan Company jumped 4.51% after the company's consolidated net profit increased 13% to Rs 871 crore in Q4 FY25 as compared with Rs 771 crore in Q4 FY24. Net sales jumped 23.8% year on year to Rs 13,897 crore during the quarter ended 31st March 2025.
Larsen & Toubro rallied 4.16% after the company reported 25% jump in consolidated net profit to Rs 5,497.26 crore on 10.9% increase in net sales to Rs 74,392.28 crore in Q4 FY25 over Q4 FY24.
Biocon rose 0.43%. The company's consolidated net profit surged 154.2% to Rs 344.50 crore in Q4 FY25 from Rs 135.50 crore posted in Q4 FY24. Net sales climbed 12.8% YoY to Rs 4,358.10 crore in Q4 FY25.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 0.52% to 6.528 as compared with previous close 6.494.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.6600, compared with its close of 85.5800 during the previous trading session.
MCX Gold futures for 5 June 2025 settlement fell 0.28% to Rs 95,899.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.01% to 100.500.
The United States 10-year bond yield slipped 0.25% to 4.363.
In the commodities market, Brent crude for July 2025 settlement gained 25 cents, or 0.40% to $63.09 a barrel.
Global Markets:
Asian stocks posted gains on Friday as investors awaited China's trade data for April. Concerns persisted over a potential deceleration in Chinese export growth due to recently imposed U.S. tariffs. Additionally, market sentiment remained cautious amid uncertainty surrounding the outcome of scheduled trade discussions between the United States and China in Switzerland.
On Wall Street, major indices advanced after U.S. President Donald Trump outlined a preliminary trade agreement with the United Kingdom ' the first such deal since the U.S. halted its broader reciprocal tariff measures in April.
According to the initial framework, the U.S. will maintain a 10% tariff on UK imports. In return, the UK will reduce its tariff rate from 5.1% to 1.8% and offer expanded access to U.S. goods. Imports of steel and aluminum from the UK will also be exempt from the existing 25% U.S. levy.
While investors interpreted the framework as a sign of potential future trade progress, the lack of a signed agreement or detailed documentation limited market certainty. President Trump indicated that final terms are still being finalized and are expected to be formalized in the coming weeks.
The Dow Jones Industrial Average rose by 0.62%, the S&P 500 increased 0.58%, and the Nasdaq Composite climbed 1.07%.
In corporate earnings news, shares of Kenvue Inc gained 4% following better-than-expected first-quarter results. Tapestry Inc rose nearly 4% after the company raised its annual earnings outlook. Conversely, Restaurant Brands International declined slightly after reporting revenue and profit below estimates. Shares of Arm Holdings fell 6% following the release of weaker-than-expected guidance.
The number of Americans filing new applications for unemployment benefits fell more than expected last week, as initial claims for state unemployment benefits dropped 13,000 to a seasonally adjusted 228,000 for the week ended May 3, the Labor Department said on Thursday.
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