Maruti Suzuki, Hindustan Unilever Lead Market UpmoveAs Financials Offer Support; IT Ends Up As a Drag

Mumbai, May 4:Most pockets of the marketparticipated in the upmove on Monday as easing oil prices and supportive political cues lifted sentiment, though gains were skewed across sectors.

At a sectoral level, 13 of 16 major sectoral indices ended in positive territory, signalling a wide participation.

Clear Leaders

Autos emerged as clear leaders, revved up by strong monthly sales data. Stocks such as Maruti Suzuki, Bajaj Auto and Eicher Motors advanced, reflecting optimism around demand recovery and improved operating outlook. The strength in autos also indicated that consumption-linked themes remain intact despite macro volatility.

FMCG stocks added to the momentum, with defensive names seeing steady buying interest. Gains in stocks like Hindustan Unilever—up around 2.6% highlighted continued investor preference for earnings visibility and stable cash flows, especially in uncertain global conditions.

Realty Surge

Importantly, realty stocks also saw a strong surge, with the realty index rising around 2.5%, reflecting optimism around domestic growth, easing interest rate concerns and supportive political signals, which tend to benefit sentiment in the sector.

Financials were largely supportive but mixed, contributing to the broader rally even as select heavyweights lagged. While several banking stocks participated in the upside, Kotak Mahindra Bank bucked the trend, falling about 3% on concerns around return on equity, showing that stock-specific earnings reactions continued to play out beneath the surface.

IT Worries

In contrast, IT stocks underperformed, with the sector emerging as a key drag on the market. The IT index slipped 1%, weighed down by concerns around revenue growth and AI-related disruptions. This divergence underscores the ongoing rotation away from export-oriented tech names towards domestic plays.

Beyond the frontline sectors, broader markets saw traction, with midcap and smallcap indices posting gains.

From a thematic perspective, the rally was driven by two major cross-sector triggers:

• Easing oil prices, which reduced pressure on inflation-sensitive sectors such as autos, FMCG and financials
• Positive election trends, particularly the BJP’s strong showing in West Bengal, which boosted sentiment around infrastructure, real estate and regionally linked plays

However, not all sectors benefited equally from the political narrative. Stocks with perceived political sensitivity, such as media names like Sun TV, saw declines, highlighting how election outcomes can create sharp sectoral divergences.

The Takeaway

In essence, the day’s move was not just about headline index gains but about sector rotation and breadth. Domestic-facing sectors—autos, FMCG and select financials—led the charge, while IT lagged, reflecting a clear shift in investor preference.

The takeaway: this wasn’t a narrow rally carried by a few heavyweights—it was a sectorally broad, domestically driven upmove, shaped by easing global risks and reinforced by political tailwinds at home.

Source:

• https://www.nseindia.com/market-data/live-market-indices