Indian equity markets closed in positive territory on Monday, with the Nifty 50 advancing 121.75 points, or 0.51%, to end at 24,119.30, while the Sensex rose 355.90 points, or 0.46%, to settle at 77,269.40. According to reports from The Economic Times, the rally was driven by election trends indicating the BJP's strong showing in West Bengal and Assam, along with its return to power in the Union Territory of Puducherry. The Nifty 50 hit an intraday high of 24,290 before reversing from those levels, with the index facing continued selling pressure near the 24,300 mark, a level that has acted as resistance. The volatility gauge India VIX ended at 18.30, down by 0.86% from the last closing, indicating reduced market uncertainty. However, as reported by Fortune India, the Sensex and Nifty 50 ended off their intraday highs as early optimism gave way to profit booking and sectoral weakness in the latter half of the session.
Gains were led by financials, pharmaceuticals, and metal stocks, which drove the broader rally across sectors. As reported by The Economic Times, out of the 4,558 stocks that traded on the BSE on May 4, 2,534 stocks witnessed advances, 1,818 saw declines while 206 stocks remained unchanged. The positive sentiment was supported by strong performance in key stocks including Reliance Industries, Larsen & Toubro, and HDFC Bank, which led to a broader market breadth. According to Fortune India, 20 out of 30 Sensex pack stocks ended in positive terrain, led by infrastructure, FMCG, and financial stocks, while IT, telecom, and select consumption names faced selling pressure. Adani Ports and Special Economic Zone led the rally with a sharp 5.3% gain, followed by Hindustan Unilever which rose 2.6%, while Reliance Industries advanced 2.24% and Larsen & Toubro added 2.18%. The Nifty 50's Price-to-Earnings (P/E) ratio is around 20.91, close to its long-term average of 21.58, suggesting valuations are reasonable.
According to Nilesh Jain, Vice President - Head of Technical and Derivative Research at Centrum Finverse, the immediate psychological support is at 24,000, followed by the 21-DMA at 23,900. As reported by The Economic Times, a decisive breakout above 24,200 is essential to extend the upward move towards 24,500 levels. Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One, noted that the Nifty 50 index remains range-bound, oscillating between its 20-day and 50-day EMA over the past week. The 50% Fibonacci retracement of the recent decline continues to cap upward momentum, while the 38.2% retracement level is offering a supportive cushion on the downside. Analysts expect the Nifty 50 to trade between 23,800 and 24,300 in the short term, with the market's failure to hold intraday highs pointing to investor caution and increased by global uncertainties.
US markets showed mixed performance with the benchmark S&P 500 and blue-chip Dow edging down on Monday as investors weighed heightened anxiety over Middle East conflict against optimism from last week's earnings. According to The Economic Times, conflicting reports about a US warship near the Strait of Hormuz dampened market sentiment, with Tehran claiming to have forced a US warship to turn back after attempting to enter the Strait of Hormuz. European markets also ended in the red, with Major European indices settling lower between 0.14% and 1.70%, including the UK's FTSE 100, French CAC, Germany's Dax, Stoxx 600 and Spain's IBEX 35. As reported by Fortune India, sentiment was further dented by continued uncertainty in global energy markets due to the ongoing Middle East conflict, weakness in the rupee, and sustained foreign outflows. The rupee falling to an all-time low of 95.23 against the dollar is a major worry, pressured by a stronger US dollar and consistent foreign investor selling totaling $19 billion in March and April. This currency drop echoes past crises, though the long-term link between the rupee and Nifty is complex.
As reported by The Economic Times, 106 stocks hit their 52-week highs while 26 stocks slipped to their 52-week lows. Among the stocks that hit 52-week highs were Adani Ports and Special Economic Zone (APSEZ), Chennai Petroleum Corporation, Clean Max Enviro Energy Solutions, and HFCL. Most active stocks in terms of turnover included APSEZ (₹7,562 crore), Reliance Industries (₹414 crore), and Kotak Mahindra Bank (₹225 crore). Vodafone Idea (6.64 crore shares traded) and APSEZ (4.62 crore shares) were among the most actively traded stocks in volume terms on BSE. According to Fortune India, despite the pullback in benchmark indices, broader markets remained resilient, with the Nifty Midcap 100 and the Nifty Smallcap 100 rising 0.63% and 0.70% respectively. Among the top performers, Maruti Suzuki India also gained over 2%, alongside financial stocks such as Bajaj Finserv and Bajaj Finance, which rose up to 1.7%. The total market value of listed Indian companies was about $5.13 trillion in 2024, with April's Goods and Services Tax (GST) collections reaching a record ₹2.43 lakh crore, up 8.7% year-on-year.
