Markets Open Strong; Sensex Zooms Past 600 pts, Reclaims 77,500

Mumbai, May 4: Indian equity benchmarks opened on a firm note on Monday, staging a confident recovery after last Friday’s sharp sell-off, as a partial easing in crude oil prices and US President Donald Trump’s announcement to guide ships through the Strait of Hormuz lifted investor sentiment. 

The BSE Sensex surged 607.77 points, or 0.79 per cent, to 77,521.27 in early trade at 9:19 AM, while the Nifty 50 rose 186.05 points, or 0.78 per cent, to 24,183.60 at 9:23 AM  reclaiming the critical 24,000 mark it had surrendered on Friday. 

Gainers

Among the top Nifty 50 gainers in early trade, Bajaj Auto led the pack with a surge of 4.09 per cent to Rs 10,402.50, followed by Maruti Suzuki which rose 3.76 per cent to Rs 13,814.00 on improved auto sector sentiment, Adani Ports advanced 3.50 per cent to Rs 1,715.30, Hindustan Unilever gained 2.44 per cent to Rs 2,305.80, and L&T climbed 2.05 per cent to Rs 4,096.10. 

Laggards

On the other side, Kotak Mahindra Bank bore the sharpest pain, declining 3.10 per cent to Rs 371.40, dragged by stock-specific pressure; Dr Reddy’s Laboratories fell 2.10 per cent to Rs 1,295.10, while ONGC slipped 0.57 per cent to Rs 297.85, TCS shed 0.43 per cent to Rs 2,463.30, and Eternal (Zomato) declined 0.41 per cent to Rs 246.01.

Broader Markets

Broader markets mirrored the benchmark rally with broad-based buying. The Nifty Midcap 100 gained 0.58 per cent to 60,132.05 and the Nifty Smallcap 100 advanced 0.61 per cent to 18,117.00, while the Nifty Next 50 was among the stronger outperformers, rising 0.87 per cent to 70,250.60; the Nifty 500 also advanced 0.75 per cent to 22,853.15. 

Sectoral Markets

On the sectoral front, Nifty Auto led the charge with a sharp 1.61 per cent gain to 26,334.80, followed closely by Nifty Realty which surged 1.46 per cent to 805.15 — both benefiting from improved macro sentiment and softening crude; Nifty Metal gained a healthy 1.04 per cent to 12,966.90 and Nifty MNC added 1.32 per cent to 32,305.95. On the lagging side, Nifty IT was the notable underperformer with a near-flat 0.04 per cent gain to 29,365.40, weighed down by Kotak’s sharp fall, while Nifty Media turned marginally negative, down 0.34 per cent to 1,451.00, and Nifty India Defence dipped 0.57 per cent to 8,922.10, as defence stocks gave up some recent gains.

Middle East Conflict

The Middle East conflict continued to cast a long shadow over global markets, with the Strait of Hormuz through which nearly a fifth of the world’s oil flows — remaining severely constrained since the onset of hostilities on February 28. While Trump’s initiative to guide ships through the waterway has provided some relief to energy markets, Iranian officials have pushed back sharply, warning that the unilateral U.S. military presence constitutes a breach of the fragile ceasefire framework. Diplomatic channels remain active, with Tehran reviewing Washington’s latest response to its 14-point peace proposal, though analysts caution that a formal deal — and a consequent reopening of Hormuz remains some distance away.

Asian Markets

Asian markets presented a mixed picture, with the Hang Seng Index surging 1.70 per cent to 26,213.62 and Japan’s Nikkei 225 adding 0.38 per cent to 59,513.12, while Indonesia’s JSX Composite fell sharply 2.03 per cent and Pakistan’s KSE 100 declined 1.71 per cent, reflecting divergent regional responses to the evolving geopolitical backdrop. 

US Markets

On Wall Street, U.S. markets closed on a split note last Friday, with the Nasdaq gaining 0.89 per cent to 25,114.44 and the S&P 500 rising 0.29 per cent to 7,230.12, even as the Dow Jones Industrial Average slipped 0.31 per cent to 49,499.27 underscoring how technology stocks continue to provide the primary ballast for American equities against an otherwise uncertain macro environment.

Oil Prices

Oil prices eased on Monday as Trump’s Hormuz shipping initiative provided some relief to an energy market that has been under extraordinary stress since February. Brent crude futures slipped 64 cents, or 0.59 per cent, to $107.53 a barrel after settling $2.23 lower on Friday, while U.S. West Texas Intermediate declined 84 cents, or 0.82 per cent, to $101.10 a barrel following a $3.13 loss in the previous session. Despite the dip, crude remains firmly above the $100-per-barrel level with Brent having surged nearly 76 per cent over the past year as traffic through the Strait of Hormuz continues to be severely restricted, negotiations between Washington and Tehran remain inconclusive, and global buyers scramble to source alternatives to disrupted Middle Eastern supply.

Friday Session

Monday’s opening gains mark a sharp turnaround from last Friday’s session, which saw Indian markets end on a deeply negative note amid relentless FII selling, a weakening rupee, and surging crude oil prices. The BSE Sensex closed at 76,913.50 on April 30, shedding 582.86 points or 0.75 per cent, while the Nifty 50 settled at 23,997.55, down 180.10 points or 0.74 per cent breaking below the key 24,000 level for the first time in several sessions. Banking, metals, and realty were the session’s biggest laggards, while IT stocks offered limited support; investors will now watch closely whether Monday’s recovery can hold through the session or whether renewed crude volatility and FII outflows reassert their grip.

Source:

• nseindia.com
• bseindia.com