Markets opened on a strong note on Friday, with the benchmark indices climbing over 1 per cent in early morning trade amid positive global cues. The Sensex jumped 827.97 points or 1.03 per cent to 81,070.21 after opening at 80,300.19, up from the previous close of 80,242.24. The Nifty also climbed 225.70 points or 0.93 per cent to 24,559.90, having opened slightly lower at 24,311.90 compared to its previous close of 24,334.20 as of 09.55 am.

The market rally was primarily driven by optimism surrounding potential US-China trade talks and strong quarterly results from global tech giants Microsoft and Meta. Additionally, record GST collections for April and lower crude oil prices further boosted investor sentiment.

“The market is expected to open on a positive note, driven by a rally in global markets and a rise in US Index Futures, fuelled by better-than-expected quarterly results from IT giants Microsoft and Meta, which surpassed analysts’ sales forecasts,” said Vikas Jain, Head of Research at Reliance Securities.

Among the top gainers on NSE, Adani Ports led the charge with a 4.49 per cent increase, followed by Hindalco (3.89 per cent), Maruti Suzuki (3.29 per cent), IndusInd Bank (2.26 per cent), and Mahindra & Mahindra (1.99 per cent).

Conversely, Eicher Motors was the biggest loser, falling 1.84 per cent, followed by Nestle India (-1.34 per cent), Bajaj Finserv (-0.91 per cent), Shriram Finance (-0.37 per cent), and Titan Company (-0.30 per cent).

The Trump effect

The positive market sentiment comes amid reports that the Trump administration may soon announce the first round of trade agreements to reduce planned tariffs with major Asian economies including India, South Korea and Japan, as well as signs of openness to trade talks with China.

“Market sentiment improved after US President Trump hinted at deals with major Asian economies and China signalled openness to trade talks,” noted Rahul Kalantri, VP Commodities at Mehta Equities Ltd.

On the domestic front, GST collections for April hit an all-time high of ₹2.37 lakh crore, up 12.6 per cent year-on-year, indicating robust economic activity. Foreign Institutional Investors (FIIs) were net buyers of over ₹2,600 crore in April, marking the highest buying interest in six months, while they continued their buying streak for the 11th consecutive session.

Auto stocks were in focus after Maruti Suzuki and TVS Motor reported impressive April sales data. Defence stocks gained momentum due to a strong government order book and ongoing geopolitical tensions, with Paras Defense announcing impressive Q4 results.

Infrastructure stocks showed positive movement following the government’s approval of ₹28,800 crore for highway projects. Oil marketing stocks benefited from Brent crude falling to a three-month low of $61 per barrel.

‘Cautiously optimistic’

From a technical perspective, analysts remain cautiously optimistic about the market’s trajectory. “On the technical front, Nifty 50 continues to consolidate in a narrow range, forming a neutral candlestick pattern. On the hourly chart, a flag and pole pattern is developing, suggesting a possible bullish breakout. If Nifty sustains above 24,400, it can potentially head towards 24,500 and 24,700 levels,” said Mandar Bhojane, Research Analyst at Choice Broking.

The broader market sentiment was also influenced by global factors, including the Bank of Japan’s decision to keep its benchmark interest rate unchanged and the US GDP data for Q1 2025 showing a 0.3 per cent contraction for the first time in three years.

“The benchmark index Nifty delivered a 1.25 per cent gain over this week and 12.50 per cent in April, recording a nearly 4 per cent rise on a month-on-month basis,” shared VLA Ambala, Co-Founder of Stock Market Today.

In the commodities market, gold prices hovered near $3,230 per ounce, while silver dipped to around $32 per troy ounce as easing global trade tensions reduced demand for safe-haven assets. Crude oil prices remained volatile, trading at $61 per barrel after initially slipping to three-week lows.

Shrikant Chouhan, Head Equity Research at Kotak Securities, cautioned: “From a technical perspective, the market is consistently facing selling pressure near the 24,450/80500 resistance zone and has also formed a double top pattern on the intraday chart, indicating potential temporary weakness from current levels.”

As the market navigates through geopolitical tensions and global economic uncertainties, analysts recommend a cautious approach with a focus on quality stocks while keeping a close eye on global developments and technical breakout levels.

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Published on May 2, 2025