Indian stock market: Sensex today rises 295 points, Nifty 50 tops 24,450 amid FII inflows, crude price fall

Indian stock market today: Equity benchmark indices Sensex and Nifty 50 wrapped up Monday's trading session (May 5) in the green, largely led by energy stocks, after global crude oil prices crashed on concerns over rising supplies. The drop in oil prices also lifted crude-sensitive stocks, with paint, aviation, and chemical counters ending the session higher.

Further, easing U.S.-China trade tensions, optimism over a potential India-U.S. deal under the Trump administration, and steady foreign inflows contributed to the Indian market's continued momentum.

The Nifty 50 extended its winning run for the second consecutive trading session, gaining another 0.52% to settle at 24,472, while the Sensex jumped 294 points or 0.43%, finishing the day at 80,850 points. The broader markets ended with even sharper gains, with the Nifty Midcap 100 and Nifty Smallcap 100 concluding the session with gains of 1.86% and 1.06%, respectively.

Meanwhile, Adani Group stocks concluded the trade with gains between 2% and 11%, amid reports that representatives for Gautam Adani met officials from the Trump administration to seek dismissal of criminal charges in an overseas bribery probe.

Last November, the U.S. Attorney’s Office in New York announced that it had indicted Adani Group chair Gautam Adani and seven other executives over an alleged years-long scheme to bribe Indian officials.

Cables and wires stocks also came under investors' radar during the session after RR Kabel reported a stellar performance in the March quarter, sending the stock price up by 15%.

OMC stocks such as HPCL, BPCL, and IOCL finished the session with gains of up to 7%, following a sharp drop in crude oil prices, which fell nearly 4% on Monday after OPEC+ confirmed a production hike of 411,000 barrels per day starting in June. The move—reportedly aimed at punishing members that exceeded their quotas—could add as much as 2.2 million barrels per day by November, stoking fears of a potential supply glut.

Investors will look toward the Federal Reserve’s two-day policy meeting set to kick off on Tuesday. Fed funds futures trading points to just a 3.2% chance of a rate cut, according to the CME Group’s FedWatch tool.

Nonetheless, traders will be keeping a close eye on any commentary from the central bank or Fed Chair Jerome Powell on the outlook for the economy amid heightened uncertainty stemming from the trade war.

Sectoral Watch: Auto, oil & gas stocks shine; private banks top laggards

The Nifty Auto index emerged as the top sectoral performer, ending with a rally of 1.85%, largely led by Mahindra & Mahindra after its March quarter numbers beat estimates, driven by a continued rise in demand for utility vehicles. The Nifty Oil & Gas index also finished the session with a return of 1.70%, followed by the Nifty FMCG, Nifty Metal, Nifty Consumer Durables, Nifty Pharma, and Nifty Realty indices, all of which ended the session with gains between 0.70% and 1.22%.

On the flip side, private banking stocks remained under pressure, with Kotak Mahindra Bank leading the losses—falling 4.6%—after reporting a weak set of numbers for the March quarter. This dragged the Nifty Private Bank index down by 0.80%.

Technical Outlook 

Vatsal Bhuva, Technical Analyst at LKP Securities, said, "The Nifty index continues to trade within a narrow range of 24,200 to 25,500, with firm support at the 24,200–24,250 zone and resistance around 24,500–24,550. While a decisive breakout above 24,550 could spark bullish momentum towards 25,000, Monday’s small-bodied candlestick suggests that short-term consolidation may persist."

"The index is holding above its rising 10-day EMA, reflecting a positive near-term trend. With the RSI in a bullish crossover, underlying strength remains intact. The outlook stays bullish as long as Nifty sustains above 24,200, though a strong close above 24,550 is essential for confirmation," he further added. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.