On May 8, 2025, the Indian stock market experienced a day of mixed performance, with benchmark indices showing little change amid geopolitical tensions and significant corporate developments. The BSE Sensex inched up by 45.91 points, or 0.06 percent, to close at 80,792.69, while the Nifty50 slipped by 11.25 points, or 0.05 percent, to 24,403.15.
Market analysts attributed the flat trading to ongoing geopolitical concerns, particularly escalating tensions between India and Pakistan following India's recent precision strikes on terrorist locations. This situation led to a surge in defence stocks, with the Nifty India Defence index rising by 0.94 percent to 7,005.40 points.
According to Mr. Siddarth Bhamre, Head of Research at Asit C Mehta Investment Intermediates, the US Federal Reserve's decision to keep its policy rates unchanged has also influenced market sentiment. He noted that the stability in real inflation and labor market data, hovering around 2 percent and 4 percent respectively, suggests that the economy remains on solid ground. "Though sentiments have been pointing towards some slowdown, the FED would not be ready to blink before the impact of tariffs is seen in actual data on jobs and inflation," he stated.
In corporate news, Suven Pharmaceuticals Limited has officially rebranded as Cohance Lifesciences Limited, marking a significant shift in the company's identity and commitment to innovative therapeutic solutions. This change was approved by the Ministry of Corporate Affairs, Government of India, effective May 7, 2025. Cohance Executive Chairman Mr. Vivek Sharma expressed optimism about the rebranding, stating, "The transition to Cohance Lifesciences marks a pivotal moment in our commitment to better serve our customers and their end market."
Meanwhile, LG Electronics India Ltd. announced the commencement of construction for its third manufacturing plant in Sri City, Andhra Pradesh, which is expected to create approximately 1,495 direct jobs. The plant, strategically located in an industrial area, represents an investment of around $600 million (INR 5001 crores) over four years. This expansion underscores India's growing role in LG Electronics' global supply chain.
In the banking sector, Canara Bank reported a significant increase in net profit for the fourth quarter, amounting to 50 billion rupees, up from 37.6 billion rupees year-on-year. The bank also noted improvements in asset quality, with gross non-performing assets (GNPA) decreasing to 2.94 percent from 3.34 percent quarter-on-quarter.
Conversely, Bharat Forge reported a decline in net profit for the same quarter, posting 3.5 billion rupees compared to 3.9 billion rupees year-on-year, trailing behind estimates. Harsha Engineers also faced challenges, with a reported EBITDA of 185 million rupees, down from 623 million rupees year-on-year.
In currency news, the Indian rupee depreciated to 85.30 against the US dollar, following a previous close of 84.72. This fluctuation reflects ongoing market dynamics and investor sentiment.
As for the gold market, Mr. Colin Shah, MD of Kama Jewelry, indicated that gold prices are expected to remain elevated amid ongoing geopolitical tensions and trade wars, predicting prices could hover around INR 96,000 to 97,000 per 10 grams domestically and USD 3,400 to 3,500 per ounce internationally.
Additionally, the Indian startup ecosystem saw significant funding rounds on this day. Commercial vehicle platform 91Trucks raised $5 million in a Series A funding round led by Arkam Ventures. The company aims to expand its product and technology capabilities and grow its offline retail presence to over 20 stores.
In healthcare, PB Healthcare Services secured $218 million in seed funding led by General Catalyst, aimed at establishing a 1,000-bed hospital network in the Delhi National Capital Region. This marks one of the largest early-stage investments in India's private healthcare sector.
CodeAnt AI, an AI-powered code review platform, raised $2 million in seed funding to enhance software development efficiency, while Vaya, a Vedic astrology startup, secured $1.5 million to modernize astrology services for a tech-savvy audience. Feline Spirits, a craft alcohol brand, raised Rs 5.2 crore to expand its premium product portfolio.
Finally, GoTrust, a privacy compliance platform, completed its pre-seed funding round to bolster its product development and market presence. This reflects the growing importance of data protection in today’s digital landscape.
Overall, the events of May 8, 2025, illustrate a complex interplay of market dynamics, corporate developments, and geopolitical tensions that continue to shape the Indian financial landscape.
