Top Indian stock gainers: Aarti Drugs, Welspun Living, Gokaldas Exports among day’s best performers

Why Did Indian Equities Rally Despite Global and Domestic Uncertainty?

Indian stock markets closed on a stronger note on May 7, 2025, reflecting resilience amid global geopolitical jitters and domestic macroeconomic crosscurrents. Gains were led by mid- and small-cap stocks across pharmaceuticals, home textiles, engineering, and agrochemicals. This comes despite currency volatility driven by heightened geopolitical risks related to Operation Sindoor, India’s military offensive in response to cross-border terrorism, and rising oil prices threatening the import bill.

The National Stock Exchange’s Nifty 50 closed at 24,414.40, gaining 34.80 points, while the BSE Sensex added 105.71 points to settle at 80,746.78. The BSE Midcap and Smallcap indices outperformed, gaining 1.3% and 1%, respectively, signaling broader market participation. Strong stock-specific momentum lifted 20 stocks by over 8% each, with many delivering double-digit gains, underscoring bullish sentiment across defensive and export-linked sectors.

What Drove Aarti Drugs to the Top of the Gainers List?

Aarti Drugs Limited surged nearly 20% to close at ₹419.85, up from its previous close of ₹349.90. The stock attracted significant volume of over 81 lakh shares, reflecting renewed institutional and retail interest. The sharp uptick was linked to anticipation of a pricing recovery in active pharmaceutical ingredients (APIs), supported by lower input costs and a stabilizing global demand environment. Additionally, the company is expected to benefit from India’s bulk drug PLI (Production Linked Incentive) schemes, which may help expand its manufacturing base and boost export competitiveness.

Investor confidence in Aarti Drugs has improved after several quarters of margin pressure, indicating that market participants now expect a cyclical turnaround in profitability as inventory de-stocking trends reverse globally.

How Did Welspun Living and Gokaldas Exports Ride the Export Wave?

Welspun Living Limited jumped over 13% to close at ₹136.20, driven by over 110 million shares traded—one of the highest on the day. The home textiles major is reportedly witnessing robust demand from the U.S. and European markets amid easing container rates and better retail sentiment overseas. Strategic partnerships in ESG-aligned sourcing and supply chain digitization have positioned the company to gain share in high-margin markets.

Similarly, Gokaldas Exports surged 11.86% to ₹952.55, following strong quarterly guidance and sustained order flows from global fashion retailers. As China faces ongoing supply-chain challenges and trade headwinds, Indian exporters like Gokaldas are experiencing a shift in volume orders. The company’s operating leverage and compliance certifications also offer a long-term moat in the apparel outsourcing ecosystem.

Which Other Stocks Delivered Double-Digit Returns and Why?

Among the top movers, CCL Products, Indo Count Industries, SP Apparels, and Himatsingka Seide gained between 8% and 12% on strong volumes and sectoral tailwinds. CCL Products closed 11.31% higher at ₹773.00 amid continued global demand for its instant coffee products, particularly from emerging markets in Russia and Southeast Asia. Analysts believe the company is a prime beneficiary of global private-label coffee demand and rising household consumption.

Indo Count Industries rose 11.7% to ₹319.90 on the back of order book expansion and gross margin recovery. Textile exporters are increasingly in focus due to favorable forex dynamics, as the rupee weakened 0.5% intraday to 84.8250 per U.S. dollar, making Indian exports more price-competitive.

SP Apparels gained 16.55% to ₹848.95, supported by investor optimism around garment outsourcing post-Bangladesh wage hikes. Himatsingka Seide also rallied 8.7% to ₹150.00 as value investors bet on recovery in high-end bedding and fabric exports after weak FY24 earnings.

What Role Did Consumer and Agrochemical Stocks Play?

Consumer-facing names like Vadilal Industries and Linc Ltd also featured prominently. Vadilal Industries rallied 9.12% to ₹6,511.00, driven by seasonal demand for frozen dairy products and retail channel expansion into new urban clusters. The company continues to benefit from early onset of summer and aggressive marketing in Tier-2 and Tier-3 cities.

Linc Ltd, which manufactures pens and stationery, rose 12.31% to ₹117.90. Improved traction in its domestic and export businesses amid a revival in educational product demand contributed to this surge.

Agrochemical player Dharmaj Crop Guard gained 8.46% to ₹225.80. Traders bet on strong kharif season demand and monsoon forecasts, positioning the company to benefit from pre-monsoon bulk orders by rural distributors.

Are Institutional Investors Supporting This Rally?

While foreign institutional investors (FIIs) remained cautious and were net sellers worth ₹1,239 crore, domestic institutional investors (DIIs) provided counterbalance, infusing ₹1,845 crore into Indian equities. This divergence continues to reflect domestic investors’ long-term conviction in India’s structural growth story.

Investor sentiment appears particularly bullish in export-driven sectors, where global tailwinds—such as friendshoring and China+1 sourcing strategies—are providing medium-term visibility. Domestic plays like consumer and agrochemicals are also gaining favour due to strong earnings resilience.

The rally in PDS Ltd (8.23% to ₹401.75), PGIL (8.62% to ₹1,039.80), and ELIN Electronics (9.13% to ₹144.00) underscores this sentiment shift, where efficient supply chains, margin stability, and product diversification have become key themes for stock selection.

What Are Investors Watching Going Forward?

Markets are now gearing up for the bulk of Q4 FY25 earnings announcements, with eyes on management commentary around rural demand, export pipelines, input costs, and discretionary spending. Concerns around the rupee’s depreciation and crude oil spikes due to Middle East unrest continue to hover over sentiment.

From a policy standpoint, upcoming announcements on PLI 2.0 across textiles, defence, and electronic components are expected to further galvanize sector-specific bets. Additionally, political developments in the run-up to the general elections could lead to fiscal expansionary announcements, potentially favoring infrastructure and consumption-linked sectors.

With institutional flows holding steady and corporate earnings likely to offer forward visibility, near-term market momentum may continue in mid-cap and small-cap counters with strong balance sheets and export growth profiles.

Sentiment Analysis and Stock Outlook

Investor sentiment on May 7 was decisively risk-on for mid-cap exporters and manufacturing-linked counters. The most aggressive buying was seen in Aarti Drugs, Welspun Living, and CCL Products, where delivery volumes and institutional action signaled fundamental conviction.

Technically, stocks like PGIL, Gokaldas Exports, and Sangam India broke through resistance zones with above-average volumes, indicating momentum-based strategies are also in play. In contrast, rights entitlements like GATDVR-RE and GATECH-RE1 posted sharp 50% gains but remain speculative in nature with minimal fundamental underpinning.

For short-term traders, profit booking may emerge in overbought counters, but longer-term investors are likely to remain positioned in structurally strong exporters, consumer compounders, and companies aligned with India’s manufacturing-led growth narrative.