Nifty 50 Erases Early Gains Amid Profit Booking; Rupee Strengthens Against US Dollar

Total of 2,699 stocks were traded on the market. Among them, 1,220 stocks advanced while 1,376 declined and 103 remained unchanged. The number of stocks hitting a 52-week high stood at 21, whereas 20 stocks touched a 52-week low.

Market Update at 12:15 PM: Indian stock markets remained resilient on Friday, heading toward a third consecutive weekly gain, supported by positive sentiment surrounding a potential India-U.S. trade agreement and consistent foreign investments.

At 12:08 p.m. IST, the Nifty 50 was trading flat, 0.04 per cent lower at 24,322, erasing early trade gains, while the BSE Sensex rose 0.25 per cent to 85,435. Both indices have posted a 1.15 per cent gain so far this week.

Leading the gains were financial stocks, with the sector index up 0.5 per cent. Broader market segments, including Small-Cap and Mid-Cap indices, also saw mixed performance. Nifty Mid-cap dipped by 0.53 per cent, and Nifty Small-cap was up by 0.19 per cent.

The benchmark equity indices surged nearly 1 per cent on Friday as a stronger rupee, sustained foreign inflows and global cues lifted the domestic market sentiment before profit booking.

Here are the seven key factors that supported Friday’s market rally:

The Indian rupee appreciated significantly, breaching the 84-per-dollar mark for the first time since October 2024, reaching 83.90. The rise was attributed to strong capital inflows and positive India-US tariff developments.

China’s Commerce Ministry acknowledged receiving signals from the US about restarting trade discussions, raising hopes of easing global trade tensions.

FIIs continued buying Indian equities for the 11th consecutive session, totaling Rs 37,375 crore. Key drivers included a weaker dollar, lower crude prices, and signs of demand recovery.

GST collections hit an all-time high of Rs 2.37 lakh crore in April, growing 12.6% YoY, indicating strong economic resilience and consumption.

Statements from US President Trump suggested that tariff negotiations with India were progressing well, boosting investor sentiment on potential trade agreements.

Major Asian indices like Kospi, Nikkei 225, and Hang Seng traded higher. US markets also ended on a positive note, contributing to a favorable global setup.

Brent crude fell to USD 62.56 per barrel, a three-month low, supporting India’s macroeconomic outlook and investor confidence.

As of 02-May-2025 at 12:13 IST, a total of 2,699 stocks were traded on the market. Among them, 1,220 stocks advanced while 1,376 declined and 103 remained unchanged. The number of stocks hitting a 52-week high stood at 21, whereas 20 stocks touched a 52-week low. Additionally, 50 stocks were locked in the upper circuit, and 42 stocks were in the lower circuit, reflecting a mixed market sentiment during the session.

Market Update at 09:45 AM: India's stock markets opened on a positive note Friday, buoyed by upbeat global cues and optimism around a possible trade agreement with the U.S. President Donald Trump mentioned a "potential" trade deal with India, lifting investor sentiment.

At 9:19 a.m. IST, the Nifty 50 index was up 0.38 per cent at 24,428, while the BSE Sensex climbed 0.53 per cent to reach 80,659.44.

Out of the 13 key sectoral indices, 10 were trading in the green. Broader market indices, including the Nifty Small-cap and Nifty Mid-cap, also saw gains of around 0.3 per cent each.

Asian markets followed the global uptrend, supported by an overnight rally in U.S. stocks, where strong tech earnings outweighed concerns over weak economic data. Trump’s remarks about trade negotiations with India, South Korea, and Japan helped improve market sentiment, while U.S. Secretary of State Marco Rubio noted that China showed interest in restarting trade talks.

Pre-Market Update at 8:00 AM: Indian equity benchmarks, the Sensex and Nifty 50, are expected to open on a flat note this Friday, as suggested by Gift Nifty trends, despite supportive signals from global markets. At 7:52 AM, Gift Nifty was hovering around 24,433, showing a marginal dip of 3.5 points compared to the previous close of Nifty futures.

Wall Street extended its winning streak, with the Dow Jones and S&P 500 marking gains for the eighth day in a row, backed by strong earnings reports from tech leaders like Microsoft and Meta. The Dow Jones Industrial Average advanced by 83.60 points (0.21 per cent) to settle at 40,752. The S&P 500 rose by 35 points (0.63 per cent) to close at 5,604, while the Nasdaq Composite moved up by 264 points (1.52 per cent) to end the session at 17,710.

In Asia, stock markets tracked Wall Street’s strength. Japan’s Nikkei 225 gained 1.24 per cent, while the broader Topix rose 0.67 per cent. South Korea’s Kospi remained range-bound, and the Kosdaq added 0.60 per cent. Meanwhile, Hong Kong’s Hang Seng opened in the green but later turned negative, down 0.19 per cent.

On the macro front, China expressed willingness to resume trade talks with the U.S., although its commerce ministry called on Washington to correct "unjust practices" and remove unilateral tariffs to create a constructive environment.

In the U.S., economic data painted a mixed picture. The ISM manufacturing PMI slipped to a five-month low of 48.7 in April, slightly below forecasts. Jobless claims rose more than expected, with 241,000 new filings for the week ending April 26. Moreover, Q1 2025 GDP contracted by 0.3 per cent, marking the first decline since 2022. A surge in imports weighed on growth, while consumer spending grew just 1.8 per cent, its slowest pace since mid-2023. Inflation remained a concern.

Back home, India's GST collections hit a new record in April 2025, reaching Rs 2.37 lakh crore—up 12.6 per cent from the previous year and surpassing the prior record of Rs 2.10 lakh crore set in April 2024. March collections were at Rs 1.96 lakh crore.

Gold prices were largely steady at USD 3,240.34 per ounce, but the metal is on track for its sharpest weekly drop since late February, losing over 2 per cent amid easing trade worries. The U.S. dollar was firm, heading for its third weekly gain in a row, supported by optimism over trade negotiations.

On the institutional front, FIIs made modest purchases worth Rs 50.57 crore on April 30, 2025, while DIIs were net buyers of Rs 1,792.15 crore. For today’s session, RBL Bank remains under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.