Stock Market News: Sensex, Nifty Trade in Red; FMCG Gains, Metals, Pharma Fall

Sensex and Nifty 50 extended losses on May 7 amid selling pressure across sectoral indices and in the broader market. At 1:37 PM, Sensex was down 353 points at 73,542 while Nifty shed 127 points and was trading at 22,314.

Around 901 stocks advanced and 2,846 stocks declined while 112 stocks remained unchanged.

Barring Nifty FMCG and IT, all major sectoral indices were in the red with Nifty Metal and Nifty Pharma falling over 2 percent each.

In the broader market, BSE Midcap was down 1.8 percent and BSE Smallcap was down 1.6 percent.

The VIX, a measure of volatility, increased to 17 on May 7, breaching a significant resistance area between 16.5 and 17 as the Lok Sabha elections advanced into the third phase of voting. Analysts suggested that a firm close above this range might indicate growing market apprehension as the elections unfold, according to a moneycontrol report.

India’s VIX has been on the rise since April 24, extending its streak of gains to eight consecutive days by May 6. Surpassing the 17 mark signifies the index’s first time reaching this level since December 2022, spanning over 17 months.

Top Nifty50 Gainers

• Hindustan Unilever: 4.51%
• Britannia Industries: 2.23%
• Neste India: 1.84%
• Tech Mahindra: 1.83%
• ITC: 1.44%

Top Nifty50 Losers

• Bajaj Auto:  -3.84%
• Shriram Finance: -3.59%
• Power Grid:  -3.03%
• Hindalco Industries:  -3.01%
• Apollo Hsopitals:  -2.9%

Stocks in News

Titagarh Rail Systems

Morgan Stanley, a global research firm, recently commenced coverage on Titagarh Rail Systems, offering an optimistic outlook by assigning it an overweight rating. The firm’s analysis indicates that Titagarh Rail Systems stands to benefit significantly from the resurgence of the Indian railways sector. The stock price was up over 6 percent intraday.

Also read: US Fed Meeting News: Jerome Powell Holds Interest Rates Steady With Cautious Approach

In their report, Morgan Stanley provided a target price of Rs 1,285 per share for Titagarh Rail Systems, suggesting a potential upside of approximately 24 percent from the current level. This valuation is based on a forward price-to-earnings (PE) multiple of 35 times FY26 earnings, a metric deemed fair by Morgan Stanley considering the company’s robust earnings visibility and improving return ratios.

Mahindra and Mahindra Financial Services:

The stock price of M&M Financial Services dropped by more than 3 percent following the non-bank lender’s disappointing performance in Q4FY24, leading brokerages to lower their forecasts for FY25 and decrease target prices for the company.

Source: NSE, BSE

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