Markets Stay Rangebound as CPI Boosts Sentiment, MSCI Additions Fuel Optimism

Indian Equities Hold Steady Amid CPI-Led Optimism and MSCI Index Rejig

Domestic equity benchmarks traded within a narrow range during the Wednesday noon session, as encouraging inflation data from both India and the United States buoyed investor confidence. As of 1:08 p.m., the BSE Sensex edged up by 42 points to 81,192, while the NSE Nifty climbed 51 points to 24,630. A softer-than-anticipated 0.2% rise in U.S. consumer prices for April reduced fears of further rate hikes by the Federal Reserve. Simultaneously, India’s retail inflation slowed to 3.16% in April—its lowest reading in six years—reviving hopes of a rate cut as early as June. Adding to the positive sentiment, MSCI’s May 2025 index review added Coromandel International and FSN E-Commerce (Nykaa) to its Global Standard Index, which is expected to trigger over $400 million in passive inflows.

Highlights:

• Sensex rises 42 pts to 81,192; Nifty gains 51 pts to 24,630

• U.S. CPI at 0.2% eases Fed rate hike concerns

• India’s April CPI drops to 3.16%, a six-year low

• Coromandel International and Nykaa added to MSCI index

• Estimated $400 million+ in passive inflows expected from MSCI changes

Intraday Volatility Grips Markets Amid Geopolitical Cues and Sector Rotation

Markets turned volatile in midday trade, impacted by mixed global cues and underlying geopolitical tensions. By 12:54 p.m., the Sensex had fallen by 172.14 points to 80,976.08, while the Nifty 50 slipped 10.75 points to 24,567.60. Despite the morning’s optimism, intermittent selling pressure weighed on benchmarks. India VIX, the volatility index, dropped 3.96% to 17.48, indicating tempered market anxiety.

Highlights:

• Sensex down 172 pts to 80,976; Nifty slips 10.75 pts to 24,567

• Volatility index (India VIX) drops 3.96% to 17.48

• Geopolitical concerns and intraday profit-booking drive fluctuations

Sectoral Divergence Emerges as Metals, Realty and Defence Surge

The broader market showed mixed performance as smallcap indices gained over 1%, while midcaps remained largely flat. Sectorally, metal and realty indices outperformed with gains of 1-2%, while banking, private banks, and FMCG stocks faced marginal declines. Defence-related stocks surged over 3%, buoyed by sentiment following Operation Sindoor, launched in the aftermath of the Pahalgam terror attack.

Highlights:

• Smallcap index gains 1%, midcaps trade flat

• Metal and realty stocks rise 1-2%, while banks and FMCG dip

• Defence index up 3% following Operation Sindoor developments

Market Breadth Favors Bulls; Several Stocks Hit Upper Circuits and 52-Week Highs

As many as 2,840 stocks were traded on the NSE as of 12:32 p.m., with 2,139 advancing and only 616 declining, reflecting broad-based optimism. Around 161 stocks, including Sagility and Sakthi Pumps, hit the upper circuit, while 22 stocks fell to their lower circuits. Notably, 54 stocks, including BEL, BDL, and Aster DM Healthcare, scaled fresh 52-week highs.

Highlights:

• 2,139 stocks advanced vs. 616 declined on NSE

• 161 stocks hit upper circuits; 22 locked in lower circuits

• BEL, BDL, Dalmia Bharat Sugar among 54 stocks at 52-week highs

Top Gainers: Tata Steel, BEL, Shriram Finance Lead the Charge

Shares of Tata Steel surged 4.03% to ₹155.45 after brokerage houses gave a thumbs-up to its Q4 earnings. Bharat Electronics (BEL) followed with a 2.49% gain, trading at ₹344.10. Other major gainers included Shriram Finance, Hindalco, and ONGC, all rising close to 2%. Strong quarterly earnings and stable global commodity prices continued to support these counters.

Highlights:

• Tata Steel up 4.03% to ₹155.45 after Q4 results cheer

• BEL rises 2.49% to ₹344.10 on defence sector rally

• Shriram Finance, Hindalco, ONGC gain nearly 2% each

Key Laggards: Tata Motors, Asian Paints, Kotak Bank Under Pressure

On the downside, Tata Motors declined 2.08% to ₹693 after reporting a sharp 51% year-on-year fall in consolidated net profit for the March quarter. Asian Paints slipped 1.63% to ₹2,286.70. Other laggards included Kotak Mahindra Bank and Power Grid Corporation, each falling around 1%, weighed by weak earnings or muted sector outlook.

Highlights:

• Tata Motors falls 2.08% post 51% decline in Q4 profit

• Asian Paints slips 1.63% amid cautious investor sentiment

• Kotak Bank and Power Grid decline nearly 1% each

Defence Stocks Extend Gains; Q4 Results Drive Stock-Specific Moves

Mishra Dhatu Nigam (Midhani), Zen Technologies, Mazagon Dock, and DCX India led gains in the defence space alongside BEL and BDL. Investor focus also turned to earnings releases, with Bharti Airtel, Cipla, GRSE, and Dalmia Bharat Sugar reacting to their Q4 results. Major names such as HAL, Lupin, Berger Paints, Tata Power, and Hitachi were scheduled to report later in the day.

Highlights:

• Midhani, Mazagon Dock, Zen Tech, DCX rally in defence sector surge

• Bharti Airtel, Cipla, GRSE react to Q4FY25 earnings

• HAL, Lupin, Tata Power, Hitachi among firms set to report Q4 today

Broader Markets: Midcap and Smallcap Rally Led by Select Stocks

In the broader markets, HBL Engineering, Nuvama, RailTel, and Ircon surged between 6% and 10% in the smallcap segment. Among midcaps, Aditya Birla Capital, Waaree Energies, National Aluminium, and Suzlon advanced 4-6%. GRSE emerged as the top gainer on BSE with a 17% jump, while Kaveri Seed, Syrma SGS, VIP Industries, and EPL declined 3-6%.

Highlights:

• HBL, Nuvama, RailTel, Ircon rally 6–10% in smallcap space

• Aditya Birla Capital, Suzlon, Waaree Energies lead midcap gainers

• GRSE up 17% on BSE; Kaveri Seed, VIP Industries decline up to 6%