Hero MotoCorp, Bharti Airtel, and HUL lead top gainers in Indian stock market

On May 6, 2025, the Indian stock market ended with mixed signals, as key benchmark indices dipped despite significant gains in several individual stocks. The BSE Sensex slipped marginally by 0.19% to close at 80,641.07, while the NSE Nifty 50 fell 0.33% to settle at 24,379.60. Amid subdued headline indices, stock-specific rallies were evident across sectors such as automobiles, FMCG, and telecom, reflecting a divergence in investor positioning and sectoral expectations. This article provides a deep dive into the top-performing stocks for the day, including institutional sentiment, P/E dynamics, key catalysts, and future outlooks for each.

Why Did Hero MotoCorp Stock Rise on May 6, 2025?

Hero MotoCorp Ltd. led the list of top gainers with a 2.48% increase in its stock price, closing at ₹3,861.00. The stock opened the day at ₹3,785.00 and surged to an intraday high of ₹3,908.00. The rally is being attributed to upbeat investor sentiment following improved sales data for the previous quarter and renewed traction in its electric vehicle (EV) lineup. With India‘s EV adoption curve steepening and Hero MotoCorp accelerating its investments in battery-powered two-wheelers, institutional buying has intensified in anticipation of long-term growth.

Fundamentally, the stock is trading at a forward P/E ratio that remains relatively conservative compared to global EV peers, which adds to its attractiveness. Analysts believe recent product launches and margin stability, combined with domestic rural demand recovery, could further support upward price action.

What Boosted Bharti Airtel Shares in the Session?

Bharti Airtel Ltd. saw its shares climb 1.61% to ₹1,896.00. The telecom giant benefited from robust quarterly numbers showcasing subscriber additions and improving average revenue per user (ARPU). The company’s aggressive 5G rollout across urban and semi-urban regions has also increased its market share and drawn renewed interest from domestic and foreign institutional investors.

Analyst reports suggest that Airtel’s balance sheet has strengthened due to strategic deleveraging and rising operational efficiencies, factors that are attracting long-term institutional flows. The recent rise also aligns with rising expectations that India’s data consumption growth will benefit leading telecom players.

What Drove Hindustan Unilever’s Stock Performance?

Hindustan Unilever Ltd. rose 1.41% to close at ₹2,381.60, supported by its strong brand equity and defensive business model. The company continues to show resilience in the face of fluctuating input costs and rural demand headwinds. Investors appear optimistic about the company’s long-term ability to preserve margins through premiumisation and innovation in product categories.

From a valuation standpoint, HUL trades at a premium to peers, justified by its market leadership across categories and consistent dividend payouts. Fund managers appear to be rotating capital into defensives like FMCG amid uncertainty over global inflation trajectories.

Why Did Tata Steel Shares Register Gains?

Tata Steel Ltd. gained 1.37% to end the day at ₹144.03. Despite global steel prices being under pressure, Tata Steel’s robust cost optimization strategy and stable domestic demand have cushioned its margins. Investors are factoring in continued infrastructure spending by the Indian government, which is likely to support long-term steel consumption.

Foreign institutional investors have begun accumulating shares in anticipation of margin expansion and reduced volatility in input costs, particularly coking coal. Tata Steel’s deleveraging trajectory and increasing focus on value-added products further support its outlook.

How Did Mahindra & Mahindra Outperform the Broader Market?

Mahindra & Mahindra Ltd. appreciated by 1.22%, closing at ₹3,058.40. This move followed the company’s announcement of a 13% year-on-year increase in net profit for the March quarter, driven by robust SUV sales and improved cost management. With a strong order book and leadership in the SUV segment, M&M continues to attract both retail and institutional participation.

The company’s push toward EV innovation and increased investment in farm equipment solutions has elevated long-term growth expectations. M&M is also favorably positioned to benefit from government policies promoting domestic manufacturing.

Which Other Stocks Were Among the Top Gainers?

Among mid-cap and small-cap counters, several notable names delivered strong gains:

CCL Products (India) Ltd. surged 16.20% as it benefited from increased exports and improving coffee prices globally. Investors see CCL as a defensive play in the food processing sector with steady margin visibility.

Poly Medicure Ltd. climbed 7.10% following robust earnings and increased traction in overseas markets, particularly in Europe. The company’s diversified product portfolio and recent R&D investments have improved investor sentiment around future growth.

Orient Bell Ltd. rose 11.74%, driven by a spurt in construction activity and positive earnings guidance. The tile and ceramics company is witnessing stronger demand in Tier-II and Tier-III cities.

Kama Holdings Ltd. gained on improved financials and cost synergies across its verticals, reflecting operational efficiencies. Similarly, Godrej Agrovet Ltd. recorded a sharp upmove following its foray into high-margin agritech services.

DIACABS, KRITI Industries, and Kalyani Forge also rose 4–5%, supported by sector-specific momentum in power equipment, polymers, and auto components, respectively.

What Sectoral Trends Influenced These Gainers?

While the Nifty 50 and Sensex traded lower, sector-specific outperformance was visible. Auto, telecom, and FMCG sectors led the charge as investors rotated into companies with strong earnings visibility and lower global exposure. In contrast, pharmaceutical stocks saw pressure due to geopolitical developments, including a U.S. executive order encouraging domestic production of generic drugs, which triggered concerns over Indian exporters.

The broader Nifty Next 50 index fell 2.42% to 63,824.90, but select constituents bucked the trend due to earnings strength or strategic business updates. High-quality midcaps continue to find favor amid expectations of rate cuts later in the year that could support credit expansion and consumer demand.

How Are Institutional Investors Reacting?

The session saw moderate institutional activity with a tilt toward defensive sectors and domestic demand stories. Foreign Institutional Investors (FIIs) displayed selective buying, especially in auto and telecom names, while trimming exposure to pharma and financials. Domestic Institutional Investors (DIIs), including mutual funds and insurance companies, remained net buyers in large-cap consumer names and infrastructure-linked plays.

Buy-side flows appear to favor companies with stable cash flows, strong brand equity, and a demonstrated ability to pass on input cost inflation. Analysts noted that HUL, Airtel, and Hero MotoCorp attracted higher delivery volumes, indicating strong long-term accumulation.

What’s the Outlook for Indian Markets and These Stocks?

Looking ahead, investors will closely monitor upcoming earnings reports, RBI commentary on inflation and liquidity, and potential shifts in U.S. Federal Reserve policy. Any dovish signal from the Fed could drive additional FII inflows into emerging markets, including India. The policy backdrop remains supportive domestically, with infrastructure spending and consumption revival expected to sustain momentum in sectors like auto, construction, and telecom.

Stocks such as Hero MotoCorp, Bharti Airtel, and Hindustan Unilever remain on the radar for institutional portfolios given their stable earnings visibility. Meanwhile, mid-cap leaders like Poly Medicure and CCL Products are emerging as sectoral alpha generators, supported by niche positioning and consistent operating performance.

While near-term volatility may persist due to global headwinds, fundamentally sound companies with a track record of resilience are expected to outperform.