Mumbai: The Indian equity markets witnessed a turbulent trading session on Tuesday, May 6, 2025, with major indices ending in the red amid persistent selling pressure across financials, mid-caps, and public sector banks. The Nifty 50 closed 81.55 points lower at 24,379.60, marking a 0.33% decline, with intraday swings reflecting investor uncertainty ahead of global macroeconomic cues and domestic earnings.
Also Read: May 6: Nifty Opens Steady at 24,500: NETWEB, UNIVCABLES Soar While KSOLVES, VMART Tumble
📉 Key Index Movements on May 6
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Nifty 50: Closed at 24,379.60, down 0.33% -
Nifty Next 50: Tumbled by 2.42%, closing at 63,824.90
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Nifty Bank: Fell by 1.18% to 54,271.40
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Nifty Financial Services: Lost 0.75%, settling at 25,969.00
Nifty 50: Closed at 24,379.60, down 0.33%The session began on a weak note, with Nifty opening at 24,500.75 and hitting an intraday high of 24,509.65. However, sustained selling dragged it down to an intraday low of 24,331.80, as investors lightened positions ahead of U.S. Fed commentary and inflation data later this week.
🏦 Sectoral Breakdown
The pain was more pronounced in financials and PSU banks, with key names like Bank of Baroda witnessing a double-digit decline. The Bank Nifty, which has been underperforming recently, cracked by over 648 points, driven by weak quarterly earnings and fears of margin compression.
Mid-cap and small-cap indices fared even worse, reflecting rising risk aversion among retail and institutional participants. The Nifty Next 50’s sharp fall of 1,581.95 points (2.42%) highlights growing volatility in the broader market.
🔻 Top 5 Losers: Bearish Breakdown
| Company | Close (₹) | Change | % Drop | Volume (Lakh) | Turnover (₹ Cr) |
|---|---|---|---|---|---|
| CENTENKA | 438.00 | -87.80 | -16.70% | 3.59 | 16.83 |
| BANKBARODA | 221.95 | -27.18 | -10.91% | 535.90 | 1,232.99 |
| VINEETLAB | 28.00 | -3.37 | -10.74% | 0.69 | 0.20 |
| KSOLVES | 373.55 | -41.50 | -10.00% | 0.32 | 1.21 |
| PFOCUS | 98.90 | -10.52 | -9.61% | 1.25 | 1.27 |
Bank of Baroda stood out with over ₹1,200 crore in turnover, suggesting significant institutional exits. Market analysts attribute the drop to weaker-than-expected net interest margins and stress in rural loan portfolios. Similarly, CENTENKA’s steep fall of 16.70% was likely driven by profit booking after a recent uptrend, exacerbated by low float and speculative unwinding.
📈 Top 5 Gainers: Bright Spots Amid Chaos
| Company | Close (₹) | Change | % Rise | Volume (Lakh) | Turnover (₹ Cr) |
|---|---|---|---|---|---|
| GATDVR-RE | 0.02 | +0.01 | +100.00% | 6.39 | 0.00 |
| GATECH-RE1 | 0.02 | +0.01 | +100.00% | 80.40 | 0.01 |
| CCL | 688.70 | +96.00 | +16.20% | 191.42 | 1,298.96 |
| ORIENTBELL | 255.27 | +26.82 | +11.74% | 2.83 | 7.38 |
| POLYMED | 2,775.00 | +183.90 | +7.10% | 21.13 | 587.54 |
CCL Products delivered a stellar performance, rising over 16%, backed by heavy volumes and speculation of a major institutional deal or strategic expansion announcement. The company saw a record turnover of ₹1,298.96 crore, surpassing even some of the benchmark constituents. Polymed also rallied strongly, likely driven by Q4 results optimism and continued investor interest in the healthcare segment.
Stocks like GATDVR-RE and GATECH-RE1 gained 100% in percentage terms, but remained speculative with nominal price levels and negligible turnover.
🔍 Market Sentiment Drivers
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Global Cues: The U.S. Federal Reserve’s upcoming statements and April’s inflation figures are keeping investors on edge globally. A surprise tightening or hawkish guidance could lead to foreign outflows from emerging markets, including India.
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Corporate Earnings: The Q4 earnings season is underway. PSU banks, mid-tier IT firms, and auto companies are set to report results this week, which may increase volatility in specific sectors.
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Monsoon Forecast & Inflation: With IMD forecasting a normal monsoon, agri and FMCG stocks remain on the radar. However, food inflation is still a concern, keeping RBI watchers alert.
📊 Technical View: Nifty Under Pressure
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Support Zone: 24,300 – 24,000
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Resistance Zone: 24,600 – 24,750
Nifty’s inability to hold above 24,500 and repeated tests of 24,300 suggest a bearish undertone. If selling continues, the index may test the psychological 24,000-mark. Traders are advised to watch for a break below this support, which could trigger a broader correction.
🗣️ Expert Commentary
“Markets are entering a phase of profit-booking after a stellar rally. Broader indices underperforming is a clear sign that liquidity is narrowing, and investors are becoming selective. The next 10 sessions will be critical as earnings, Fed outlook, and inflation trends converge,”
— Rakesh Vora, Technical Strategist, Axis Global Securities
📅 What’s Ahead?
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May 7: RBI’s monetary policy review hints
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May 9: US CPI inflation numbers
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May 10–13: Results of HDFC Bank, SBI, Eicher Motors, and Tata Power
🧾 Conclusion
Despite a relatively modest fall in Nifty 50, Tuesday’s session painted a grim picture for broader indices and high-beta sectors. Heavy selling in Bank of Baroda and Centenka revealed investor nervousness, while selective buying in stocks like CCL and Polymed highlighted opportunities for stock pickers. Traders and investors should tread carefully as macroeconomic uncertainties loom large.
