Indian Stock Market Starts Week on a Positive Note
On Monday, May 5, 2025, the Indian stock market opened the new week with gains across major indices. The BSE Sensex climbed 295 points to close at 80,797, while the NSE Nifty 50 added 114 points, ending at 24,461 – a modest but encouraging 0.47% increase.
Adani Group Stocks Lead the Rally
A major highlight of the day was the sharp rally in Adani group stocks. Adani Ports surged over 6%, Adani Enterprises was the biggest Nifty gainer with a 7.2% intraday jump, and the group’s shares collectively gained as much as 11%. This bullish momentum followed news that Adani representatives met US officials to address a bribery investigation, which reassured investors and boosted confidence in the group’s outlook.
Sectoral Performance: Energy and Consumer Stocks Shine
The broader market showed strength with the BSE MidCap and SmallCap indices rising 1.5% and 1.2%, respectively. Key sectors driving the rally included oil & gas, consumer durables, energy, and FMCG – all posting gains above 1%. The BSE Oil & Gas index led sectoral gains, buoyed by strong performances from oil marketing companies.
Banking Sector Faces Headwinds
In contrast, the banking sector struggled. Kotak Mahindra Bank shares fell over 4.5% after reporting a 7.57% decline in consolidated net profit for Q4 FY25, mainly due to stress in its microlending portfolio. Similarly, State Bank of India’s quarterly net profit dropped 8.34%, leading to a more than 1% dip in its stock price. Other financial players like Axis Bank and Titan also saw declines.
Noteworthy Stock Moves: Mahindra & Mahindra and Motilal Oswal
Mahindra & Mahindra shares gained over 3%, supported by strong volume and positive momentum. The company also announced plans to launch a new electric vehicle (EV) platform on August 15, underscoring its commitment to electrification and growth in the EV sector3.
Motilal Oswal Financial Services (MOFSL) shares surged nearly 10% despite reporting a net loss for Q4 FY25, the first since FY20. The stock’s strong bounce reflects investor optimism about its long-term prospects despite short-term setbacks
Foreign Investors Continue Buying, Domestic Investors Sell
Foreign institutional investors (FIIs) remained net buyers, extending their buying streak to 12 sessions with inflows around Rs 2,770 crore on May 2. This consistent foreign interest has been a key pillar supporting the market. Meanwhile, domestic institutional investors (DIIs) turned sellers, offloading equities worth approximately Rs 3,290 crore during the same period.
Mixed Sectoral Trends: IT, Media, and Auto Gain; Others Lag
While IT, media, oil & gas, and energy sectors posted steady gains, sectors such as power, metals, telecom, pharmaceuticals, realty, and consumer durables faced declines ranging from 0.5% to 2%. The auto sector contributed positively, with companies like Mahindra & Mahindra and Tata Motors among the top gainers.
Defence Stocks Rebound on Geopolitical Tensions
Defence stocks saw renewed buying amid escalating tensions between India and Pakistan, adding a geopolitical dimension to market dynamics. This sector’s rebound reflects investor interest in companies positioned to benefit from increased defence spending
Market Outlook: Cautious Optimism Prevails
Monday’s trading session demonstrated cautious optimism among investors. Corporate developments, strong foreign inflows, and sector rotation favoring energy and consumer sectors helped the market maintain momentum. Although banking stocks took a breather due to profit concerns, the broader market breadth was healthy, with nearly 2,600 advancing shares against about 1,450 decliners on the BSE.
Conclusion
In summary, the Indian stock market showed resilience and selective strength today, setting a constructive tone for the week ahead. Key benchmarks hovered above recent consolidation levels as investors remained attentive to corporate earnings and global cues.
