Equity markets extended their upward trajectory on Monday, with the Nifty rising 114 points to 24,461.15 and the Sensex gaining 295 points to close at 80,796.84, driven by strength in auto and energy stocks.

Equity benchmarks extended their positive momentum on Monday, with the Nifty ending 114 points higher at 24,461.15 and the Sensex gaining 295 points to close at 80,796.84, driven by strong performances in auto and energy sectors, while banking stocks faced profit-booking pressure.

Adani Group stocks emerged as the day’s top performers after Bloomberg reported that Group representatives met with the US Department of Justice seeking dismissal of bribery charges. Adani Enterprises surged 7.44 per cent to ₹2,465, while Adani Ports gained 6.27 per cent to close at ₹1,346.50.

“The markets began the week on a subdued note, ending with a modest gain of half a percent while continuing the ongoing consolidation phase,” said Ajit Mishra, SVP, Research, Religare Broking Ltd. “Barring the banking sector, all other indices closed in the green, with auto, energy, and FMCG emerging as the top gainers.”

The broader markets substantially outperformed the benchmarks, with the Nifty Midcap 100 rising 1.81 per cent and the Nifty Smallcap 100 gaining 1.02 per cent. BSE Midcap and Smallcap indices also showed strength, climbing 1.45 per cent and 1.23 per cent respectively.

Among sectoral indices, Automobile, Oil & Gas, Consumption, Energy, and Consumer Goods showed notable strength, while banking stocks remained under pressure. The Bank Nifty index declined 0.36 per cent to close at 54,919.50, weighing on overall market momentum.

Market breadth remained decisively positive, with 2,520 stocks advancing against 1,503 declining on the BSE. Seventy-eight stocks hit 52-week highs, while 63 touched their 52-week lows.

Kotak Mahindra Bank was the biggest Nifty loser, dropping 4.59 per cent after posting higher-than-expected provisions. Other major losers included JSW Steel (-1.85 per cent), ONGC (-1.45 per cent), State Bank of India (-1.18 per cent), and Titan (-0.78 per cent).

After Adani stocks, the top gainers list featured Trent (+4.51 per cent), Shriram Finance (+4.24 per cent), and Bajaj Finserv (+3.63 per cent).

“Benchmark indices closed higher on Monday, helped by positive global cues from trade deal optimism to falling crude oil prices along with persistent foreign buying,” noted Satish Chandra Aluri of Lemonn Markets Desk. “News of likely early trade deals with the US along with falling oil prices brought cheer on the global front while earnings continued to roll in except for a few misses.”

The Indian rupee strengthened against the US dollar, gaining 13 paise to settle at 84.32. “Sustained FII inflows continue to support the domestic currency,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “Additionally, a sharp decline in crude oil prices down over 20 per cent year-to-date has provided a further cushion, easing India’s import bill and supporting macro fundamentals.”

In commodities, gold surged to $3,280 per ounce on a softer dollar ahead of the upcoming US Federal Reserve meeting. “Gold prices surged sharply as expectations of an interest rate cut by the US Federal Reserve this week fueled strong buying,” Trivedi noted. “The rally is being supported by renewed risk aversion, a softer dollar, and anticipation around the Fed’s policy stance.”

WTI crude oil prices rebounded to $59.9 per barrel after President Trump warned that countries purchasing oil from Iran would face US sanctions. However, prices later resumed their decline, falling to $55.3 per barrel amid renewed selling pressure after OPEC+ confirmed a production increase of 4,11,000 barrels per day for June.

Technically, the Nifty faces immediate resistance at 24,500-24,550 levels. “Nifty is expected to extend last 6 sessions consolidation in the range of 24,600-23,800,” according to Bajaj Broking Research. “A close above 24,600 will open further upside towards December 2024 high of 24,850 in the coming sessions.”

Nagaraj Shetti of HDFC Securities provided an optimistic outlook: “A sustainable move above the hurdle of 24,500-24,600 levels, Nifty could move towards the next upside of 24,800-25,000 in the near term. Immediate support is placed at 24,250.”

Looking ahead, market participants are advised to maintain a “buy on dips” approach. “Volatility is expected to remain elevated amid geo-political conflict, tariff-related developments and the progress of the Q4 earnings season,” cautioned Bajaj Broking Research. The market’s future direction hinges on participation from the banking sector, which could provide the necessary momentum to drive the Nifty toward the 24,800 mark.

Published on May 5, 2025