Market Wrap, May 6: NIFTY50 settles below 24,400, SENSEX down 156 pts as banking shares crash; broader market declines over 2%

The Indian stock market on Tuesday, May 6, ended the session negative as the broader market witnessed a steep decline and shares of PSU Bank’s tanked nearly 5%.

Investors remained cautious a day ahead of the US Federal Reserve’s policy decision and amid the ongoing geopolitical tensions between India and Pakistan.

Market sentiment was also hit after Moody's Ratings cut India's GDP growth projections for 2025 to 6.3%, from 6.5%, saying economies globally will see a slowdown on account of heightened US policy uncertainty and trade restrictions.

According to exchange data, foreign institutional investors (FIIs) bought equities worth ₹497.79 crore on a net basis on Monday.

On the global front, Asian markets were mostly higher on Tuesday after US President Donald Trump said that he had no plans to talk to his Chinese counterpart this week.

Oil prices bounced back slightly from a 4-year low, and US stock futures slipped.

The Shanghai Composite index added 0.7% to 3,302.83, while the Hang Seng in Hong Kong was up 0.4% at 22,599.32. Taiwan's Taiex edged 0.2% higher. In Australia, the S&P/ASX 200 rose 0.2% to 8,144.20.

Trading remained closed in Japan and South Korea markets on Tuesday.

The US markets ended in red on Monday after President Donald Trump announced plans to impose a 100% tariff on movies produced in foreign countries. Investors also remained cautious ahead of the Federal Reserve’s monetary policy decision later this week.

The Dow Jones Industrial Average declined 98.60 points, or 0.24%, to 41,218.83, the S&P 500 slipped 36.29 points, or 0.64%, to 5,650.38 and the Nasdaq Composite fell 133.49 points, or 0.74%, to 17,844.24.

As many as 2,946 stocks traded on the NSE on Tuesday. Out of this, 2,331 advanced, and only 545 declined, while 70 scrips remained unchanged.

A total of 25 stocks hit their 52-week highs, while 56 stocks touched their one-year lows. Besides, 35 stocks hit their upper circuit limits, and 122 touched their lower circuit bands on Tuesday.

NSE-listed firms' market capitalisation stood at ₹419.23 lakh crore at the end of the session.

The volatility index India VIX surged 3.58% to 19 levels.

Except for Nifty Auto (0.17%), all the other sectoral indices ended in red. Nifty PSU Bank was the top losing sector, plunging 4.84%.

Nifty Realty (-3.58%), Nifty Oil and Gas (-1.79%), Nifty Consumer Durables (-1.68%) and Nifty Media (-1.51%) were the other top losing sectors.

The midcap and smallcap indices underperformed the most, dragging the main equity indices. The NIFTY Midcap 100 index lost 2.27%, ending at 53,435.85 levels, while the NIFTY Smallcap 100 gauge tumbled 2.5% to close at 16,195.15 levels.

Adani Enterprises was the biggest laggard on the NIFTY50 pack, declining 4.3%. Jio Financial Services (-3.68%), Eternal (-3%), Trent (-2.80%) and SBI Life Insurance (-2.53%) were the other top losers.

On the other hand, Hero MotorCorp (2.48%), Bharti Airtel (1.61%), Hindustan Unilever (1.41%), Tata Steel (1.37%) and Mahindra & Mahindra (1.22%) were the top gaining stocks on the 50-share index.

The PSU Bank’s net interest income (NII), however, declined 6.6% to ₹11,019 crore year-on-year (YoY) as against ₹11,793 crore in Q4 FY24.

On the asset quality front, Bank of Baroda’s gross non-performing asset (NPA) was reported at 2.26% in contrast to 2.43% quarter-on-quarter (QoQ). Net NPA for Q4 FY25 was seen at 0.58% as against 0.59% QoQ.

For the fourth quarter of fiscal year 2024-25, CCL Products reported a 56% jump in its net profit to ₹101.86 crore as compared to ₹65.22 crore in the same quarter last financial year. Sequentially, its profit was at ₹63 crore in Q3 FY25.

Revenue from operations increased 15% year-on-year (YoY) to ₹836 crore as against ₹727 crore in Q4 FY24. On the operating front, its EBITDA grew 38% YoY to ₹163 crore in Q4 FY25. EBITDA margins improved by 400 basis points YoY to 20%.

In an exchange filing, the company's Board of Directors said that it will meet on Tuesday "to consider and approve the audited standalone and consolidated financial results of the company for the quarter and financial year ended March 31, 2025."

The Vijay Shekhar Sharma-led firm said that it will hold its earnings conference call for investors and analysts on Tuesday from 6 pm to 7 pm to discuss Q4 report card.