Stock market today: Indian stock market ended Tuesday’s trading session, May 6, in the red, as broader losses led by pharma stocks dragged indices lower after U.S. President Donald Trump signed an order to boost domestic drug manufacturing. Auto stocks, led by Mahindra & Mahindra, offered some support to the market, but it wasn’t enough to keep it afloat, causing both the Nifty 50 and Sensex to snap their two-day winning streak.

The weak handover from Wall Street, which ended its 9-day winning run, also impacted sentiment as traders evaluated updates on global trade and awaited the U.S. Federal Reserve’s policy decision later this week. The market also fears that tensions between India and Pakistan could escalate, as India is scheduled to conduct mock civil defense drills on Wednesday.

The Nifty 50 declined 0.36% to 24,372, while the Sensex edged down 0.23% to 80,609. Broader markets ended with an even sharper decline, with the Nifty Midcap 100 index tumbling 2.27% to 53,434 and the Nifty Smallcap 100 index finishing 394 points, or 2.37%, lower at 16,215.

Barring Nifty Auto, which was little changed, all sectors closed in the red, led by PSU banking stocks.

The Trump administration is “very close to some deals,” CNBC reported Monday, citing Treasury Secretary Scott Beseent. Trump said Sunday that tariff deals with some countries could come as early as this week, according to the report.

Investor optimism has surged in recent sessions on expectations that India could be among the first nations to strike a deal with the U.S., which has supported the strong rally in Indian equity markets.

On the stock-specific front, CCL Products emerged as the top gainer among Nifty 500 stocks after the company reported its highest-ever quarterly net profit and revenue in Q4FY25, surpassing analysts’ estimates and sending the stock up 15%.

Looking at trade developments, it was reported that India has proposed zero tariffs on steel, auto components, and pharmaceuticals on a reciprocal basis—up to a certain quantity of imports—in its trade negotiations with the U.S., according to people familiar with the matter who spoke to Bloomberg.

In economic news, Moody’s Ratings cut India’s GDP growth projection for 2025 to 6.3% from 6.5%, citing a global slowdown due to heightened U.S. policy uncertainty and rising trade restrictions.

In its Global Macro Outlook 2025–26 (May update), Moody’s also noted that geopolitical tensions, such as those between India and Pakistan, pose potential downside risks to its baseline growth forecasts.

On the commodities front, crude oil prices rebounded after suffering one of their steepest intraday declines in recent times, following OPEC+’s decision to accelerate output hikes for a second consecutive month.