Opening Bell - Morning Commentary - 05 May 2026
By Prime Research | Updated at: May 4, 2026 11:06 AM IST
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Wall Street Surges to New Highs While Indian Markets Consolidate
The S&P 500 and Nasdaq Composite both closed at fresh all-time highs, buoyed by strong mega-cap tech earnings and a modest pullback in crude prices.
The S&P 500 extended its winning streak to five consecutive weeks on Friday, closing 0.3% higher at a record high, led by technology and consumer discretionary sectors. The Nasdaq 100 rose 0.9%, also finishing at a record.
US GDP grew at a 2.0% annualised rate in Q1 2026, accelerating from 0.5% in Q4 2025, but fell slightly short of consensus estimates and was well below the 4.4% pace recorded in Q3 2025.
Earnings expectations surged after mega-cap technology companies reported better-than-expected results. With 63% of S&P 500 companies having reported, analysts now project first-quarter earnings growth of 27.1%, up sharply from a 15.0% forecast the prior week.
The past week was a period of consolidation and heightened volatility for the Indian equity markets. While the benchmarks had enjoyed a stellar April with the Nifty 50 surging over 5.8% for the full month—the final week saw a tactical retreat.
Investors grappled with a combination of higher-for-longer global interest rate signals and a sharp escalation in energy costs driven by geopolitical friction.
The Indian Rupee hit a historic psychological milestone, slipping past the 95-per-US-dollar mark on April 30. This depreciation was accelerated by continued foreign portfolio investor (FPI) outflows as traders pivoted toward the safety of the US dollar index.
BSE Sensex added 0.3%, and the Nifty gained 0.4% for the week. The BSE 150 MidCap Index gained 0.3%. The BSE 250 SmallCap index jumped 2.0%.
The IT sector was a rare bright spot, acting as a natural hedge against a weakening Rupee. The Banking and Financial Services sectors bore the brunt of the selling pressure, with Nifty Bank falling roughly 1% in the final session of April. Additionally, the Metals and Energy space faced headwinds.
Indian automakers exhibited robust monthly sales, surging 8-10% YoY amid festive demand and lower taxes.
India’s GST collections jumped 8.7 per cent year-on-year to hit an all-time high of Rs 2,42,702 crore in April 2026, according to the latest official data released on Friday, May 1.
Results for four state assembly elections and one Union territory Assam, Kerala, Tamil Nadu, West Bengal, and Puducherry are due today and that is likely to drive sentiments in the short run.
Nifty found support near the key 23,800 level, which reinforces its role as pivotal support. Immediate hurdles stand at 24,334 and 24,600.
Indian markets are likely to open higher on strong global cues.
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Please Note: The information shared is intended solely for informational purposes and does not make any investment recommendations
