On May 5, 2025, the Indian stock market showed signs of recovery amid easing global trade tensions and positive economic indicators. The benchmark indices, Sensex and Nifty, opened higher, buoyed by robust foreign investor inflows and strong performances from key sectors, particularly banking and technology.
Tata Consultancy Services Ltd (NSE: TCS) saw its share price rise by ₹57.30, or 1.66%, reaching ₹3,502.00 in early trading. This surge reflects growing confidence in large-cap tech stocks as fears of recession in the US and Europe begin to ease. As of 9:57 AM IST, TCS's market cap stood at ₹12.72 lakh crore, with a P/E ratio of 26.10 and a dividend yield of 1.71%. The stock's 52-week range has fluctuated between ₹3,056.05 and ₹4,592.25.
Market analysts attribute the rise in TCS shares to several factors, including sector-wide buying across the Nifty IT index, expectations of stable margins, and a robust deal pipeline for the fourth quarter. Technical indicators also suggest a bullish trend, with immediate support levels around ₹3,470 and resistance at ₹3,520. Traders are optimistic, anticipating further gains as TCS breaks through the ₹3,500 mark.
Meanwhile, the broader market also benefited from positive news. Foreign institutional investors (FIIs) remained net buyers for the 12th consecutive session, purchasing equities worth ₹2,769 crore on May 2. Cumulatively, FIIs have bought equities totaling ₹40,145 crore over the last 12 trading days, signaling a strong pivot in investment strategy.
On the same day, the Indian rupee appreciated by 19 paise to 84.38 against the US dollar, further enhancing market sentiment. This comes as the dollar index has seen a decline, creating a favorable environment for Indian equities.
Banking stocks led the gains, with HDFC Bank, ICICI Bank, and Reliance Industries contributing significantly to the market's upward momentum. However, Kotak Mahindra Bank faced challenges, reporting a 14% year-on-year drop in net profit for Q4FY25, attributed to a narrower net interest margin despite a 4.5% increase in net interest income.
State Bank of India (SBI) also reported a 10% decline in net profit for the same quarter, with earnings coming in at ₹18,643 crore, down from ₹20,698 crore the previous year. The bank's net interest income rose 2.7% to ₹42,775 crore, indicating some resilience amidst the challenges.
In other notable news, Adani Enterprises announced a revised capital expenditure plan of ₹36,000 crore for FY26, focusing on strategic investments. This is a reduction from previous forecasts, as the company aims to streamline its financial commitments.
IRCON International saw its share price increase by 3.24% to ₹157.95 after securing a ₹458.14 crore civil works contract from North Eastern Electric Power Corporation for the Tato-I Hydro Electric project in Arunachal Pradesh. The project is set to last 45 months and highlights IRCON's growing footprint in infrastructure development.
In the technology sector, TCS is collaborating with IBM to advance India's quantum industry through the Quantum Valley Tech Park in Amaravati. This initiative will house IBM's largest quantum computer in the country, marking a significant milestone for technological advancement in India.
Swiggy's rapid expansion of its 'Bolt' 15-minute food delivery service to over 500 cities has also made headlines, contributing to a notable increase in its food order volumes, now accounting for 10% of all orders on the platform.
As the market continues to stabilize, analysts are closely watching the impact of ongoing global economic developments, including potential shifts in US-China trade relations and domestic policy responses to geopolitical tensions.
In conclusion, the Indian stock market's upward trajectory on May 5 reflects a combination of positive investor sentiment, solid corporate earnings, and strategic investments across key sectors. As the market adapts to evolving economic conditions, stakeholders remain optimistic about future growth prospects.
