INDICES TRADE WITH MINOR GAINS; PHARMA SHARES RALLY FOR 5TH DAY

Published on May 06, 2026 11:42

The domestic equity benchmarks pared most of the gains and traded with small gains in mid-morning trade, as investors remained optimstic over a potential US�Iran peace deal. Softer geopolitical tensions pushed Brent below $110 per barrel, while the rupee strengthened to hover near the 95-per-dollar mark. However, investors remain focused on Q4 earnings for near-term cues. The Nifty traded below the 24,100 mark.

Pharma shares rallied for five consecutive trading sessions.

At 11:25 IST, the barometer index, the S&P BSE Sensex added 125.32 points or 0.16% to 77,145.29. The Nifty 50 index jumped 60.60 points or 0.26% to 24,096.40.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index rose 0.98% and the BSE 250 SmallCap Index rose 0.73%.

The market breadth was strong. On the BSE, 2,307 shares rose and 1,173 shares fell. A total of 169 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 2.52% to 17.46.

In the commodities market, Brent crude for June 2026 settlement declined $1.46 or 1.33% to $108.41 a barrel.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 95.1600 compared with its close of 95.1800 during the previous trading session.

Economy:

HSBC India Services PMI Business Activity Index rose from 57.5 in March to 58.8 in April, showing the strongest rate of expansion since last November. Indian services companies welcomed a recovery in growth of both output and new order intakes during April. In addition to increased e-commerce and greater underlying demand, firms indicated that a shift from international to domestic suppliers amid the war in the Middle East particularly boosted transport activity.

The HSBC India Composite PMI Output Index was up from 57.0 to 58.2, signalling a historically strong rate of expansion.

Buzzing Index:

The Nifty Pharma index jumped 1.63% to 23,953.60. The index zoomed 3.43% in the five consecutive trading sessions.

Wockhardt (up 12.73%), Ajanta Pharma (up 5.45%), Alkem Laboratories (up 3.62%), Biocon (up 3.46%), Aurobindo Pharma (up 3%), Lupin (up 2.91%), Piramal Pharma (up 2.38%), Zydus Lifesciences (up 1.86%), J B Chemicals & Pharmaceuticals (up 1.66%) and Cipla (up 1.6%) surged.

Stocks in Spotlight:

Aeroflex Industries added 2.09% after the company reported 57.01% rise in consolidated net profit to Rs 17.64 crore on a 37.25% increase in revenue from operations to Rs 125.84 crore in Q4 FY26 as compared with Q4 FY25.

Bharat Electronics (BEL) rose 0.84%. The company said that it has signed a contract with the Ministry of Defence worth Rs 1,251 crore for the supply of the Ground Based Multi Sensor Electronic Support Measure (GBMES) system to the Indian Army.

Coforge soared 9.66% after the company reported a 144.72% surge in consolidated net profit to Rs 612.3 crore on 5.17% jump in revenue from operations to Rs 4450.4 crore in Q4 FY26 over Q3 FY26.

Global Market:

Asia market traded higher on Wednesday, tracking Wall Street gains overnight, after oil prices dropped and strong earnings lifted investor sentiment.

Signaling diplomatic efforts for resolving the Middle East crisis were on track, President Donald Trump said the U.S. bid to guide ships out of Strait of Hormuz had been paused.

�We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom will be paused for a short period of time to see whether or not the Agreement can be finalized and signed,� Trump said in his Truth Social post.

The U.S. military on Monday began guiding commercial ships out of the Strait of Hormuz under Project Freedom. U.S. Defense Secretary Pete Hegseth on Tuesday said that �two U.S. commercial ships, along with American destroyers, have already safely transited the strait, showing the lane is clear.�

Overnight on Wall Street, U.S. stocks ended higher on Tuesday, while oil prices slid as traders reacted to a number of solid earnings results.

The S&P 500 rose 0.81%, hitting a new all-time high and closing at a record of 7,259.22. The Nasdaq Composite gained 1.03%, touching a new high and notching a closing record of 25,326.13. The Dow Jones Industrial Average added 356.35 points, or 0.73%, to end at 49,298.25.