The market bounced back after a day of weakness as the US Federal Reserve indicated they may pause the rate hike cycle soon. This lifted the mood of market participants on Dalal Street on May 4.
Some strong set of March quarter numbers reported by India Inc. also helped the market move upwards. Banks and financial services stocks were in the limelight but FMCG names saw some selling pressure.
The NSE Nifty 50 ended the day at 18,255.80, up 165.95 or 0.92 percent. The BSE flagship Sensex climbed 555.95 points or 0.91 percent to 61,749.25.
"Following a widely expected rate hike by the Fed and consistent foreign support, the domestic equities resumed its bullish momentum, driven by gains across major sectors,” said Vinod Nair, Head of Research at Geojit Financial Services.
“However, the US market faced losses as the Fed reiterated concerns over elevated inflation despite softening its language on future rate hikes. Signs of returning contagion fears in regional US banks also weighed on the global market mood."
Stocks and sectors
In the Nifty 50, Adani Enterprises that came out with its Q4 numbers was the biggest gainer, jumping nearly 5 percent. It was followed by Bajaj Finance, HDFC, SBI Life Insurance and HDFC Bank.
IndusInd Bank was the biggest loser in the pack, down 1.32 percent, followed by UPL, Nestle India, Power Grid and ITC.
| Index | Prices | Change | Change% |
|---|---|---|---|
| 61,549.73 | -199.52 | -0.32% | |
| 18,208.00 | -47.80 | -0.26% | |
| Nifty Bank | 43,500.05 | -185.40 | -0.42% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Titan Company | 2,725.90 | 55.50 | +2.08% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| HDFC Bank | 1,641.60 | -86.20 | -4.99% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Auto | 13442.20 | 149.70 | +1.13% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 5851.45 | -43.60 | -0.74% |
Broader markets also saw good buying as Nifty Smallcap 100 rose 0.79 percent while midcap space benchmark Nifty Midcap 100 climbed 0.58 percent.
Sectoral matrix was mostly positive. Nifty FMCG was the sole sectoral index that ended down 0.13 percent. The biggest gainer was Nifty Financial Services that rose 1.55 percent followed by Nifty Metal and Nifty PSU Bank.
Outlook for May 4
Ajit Mishra, VP - Technical Research, Religare Broking
The surge in the index shows more leg to the prevailing up move before it settles for some consolidation. Apart from consistent buying in banking and financial majors, the rotational participation from other sectors is fueling the recovery now. We thus recommend aligning positions according to the trend, with a focus on stock selection.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
The US Federal Reserve softening its stance over future rate hike prospects cheered investors' mood which triggered a fresh bout of buying in banking stocks. With India's growth indicators showing good signs of revival and crude oil prices staying lower, investors are betting big on local equities even as haze over global economic growth persists. Technically, the Nifty cleared the 18150 resistance mark and post breakout it intensified the positive momentum. The index has also formed a long bullish candle which supports further uptrend from the current levels. As long as the index is trading above 18150, the uptrend wave is likely to continue up to 18350-18400.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
After a brief pause, Nifty continued its upward movement as Indian equities shrug off global concerns surrounding US Fed rate hike. Healthy Q4 earnings and strong buying by FIIs (+Rs9500cr) in the last five days provided much-needed support to the market. Key domestic macro data has also been encouraging. Investors will now look forward ECB meeting outcome. Overall market structure remains positive with Nifty slowly and gradually gaining strength over the last few weeks.