Benchmark indices Nifty 50 and Sensex extended their gains during the afternoon session on Monday, May 5, as continued buying from foreign investors, positive global cues, and sinking crude prices buoyed the market sentiment.
At 11:57 am, the Sensex was up 230.46 points or 0.29 percent at 80,732.45, and the Nifty was up 88.85 points or 0.36 percent at 24,435.55. About 2,212 shares advanced, indicating the market breadth was in favour of the bulls, as 1,176 shares declined, and 148 shares were unchanged.
The broader markets edged out the benchmarks, with the Nifty Midcap 100 and the Nifty Smallcap 100 rising up to one percent during the noon session. All sectoral indices, barring banking and financial gauges, traded in the green, with oil and gas, FMCG and auto counters driving the gains.
Volatility, measured by the fear gauge India VIX, remained high, with the index near the 18.3 mark.
Oil prices slipped on concerns of a global glut after OPEC+ agreed to another bumper output increase, adding to supply at a time when demand is challenged by the drag from the trade war.
Global benchmark Brent tumbled by as much as 4.6 percent toward $58 a barrel as the week’s trading kicked off, while West Texas Intermediate was near $56. The decision by OPEC and its allies was taken at a meeting on Saturday, with the group’s leaders seeking to punish overproducing members including Kazakhstan in a strategy shift that had already sent prices plunging.
Indian rupee opened 12 paise up at 84.4450 against the US dollar, as compared to 84.5612 against the greenback at previous close. The dollar index slipped below the 100-mark to 99.635, indicating significant weakness.
Adani Group stocks also saw investor interest after a report said representatives for billionaire Gautam Adani and his companies met officials from US President Donald Trump’s administration to seek dismissal of the criminal charges against him.
Shares of flagship Adani firm Adani Enterprises rose five percent, while Adani Ports, Adani Green Energy, Adani Energy Solutions and Adani Power recorded gains between 4 and 6 percent each.
Follow our market blog to catch all the live updates
In the previous session, FIIs remained net buyers as they bought equities of Rs 2,769 crore, buying Indian equities for the 12th consecutive session. Domestic institutional investors (DIIs) also bought equities of Rs 3,290 crore.
“This is a major pivot in FII strategy. And this will impart resilience to the market. The concern now is India’s retaliatory action to the terrorist strike and its fall out. This concern will restrict the FII-led rally,” noted VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
Given the current momentum, traders are advised to maintain a disciplined approach with strict risk management, while capitalizing on short-term trading opportunities, suggest experts.
“On the downside, immediate support is seen at the 24,300 level, with a stronger base in the 24,200–24,000 zone. On the upside, 24,500 remains a key resistance. A decisive breakout above this level could open the door for a rally towards the 24,700 mark,” Hardik Matalia, Derivative Analyst, Choice Broking.
(With agency inputs.)
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
