Sensex and Nifty Rise on Crude Oil Drop; Nifty Auto Index Hits Two-Month High

With the gain, the market breadth was positive. Of the 2,984 NSE-listed stocks traded, 2,023 advanced, 865 declined, and 96 remained unchanged.

Market Update 04:15 PM: Indian equity benchmarks closed higher for the second straight session on Monday, May 5, led by strong gains in energy and auto stocks. The Nifty 50 rose 114 points (0.47 per cent) to settle at 24,461, while the BSE Sensex advanced 294 points (0.37 per cent) to 80,796. The gains were supported by a decline in crude oil prices, sustained foreign fund inflows for the 12th session, and optimism over a potential India-U.S. trade deal. 

Oil Marketing Companies like BPCL and Indian Oil rose over 3.5 per cent, and Hindustan Petroleum gained 6.4 per cent following reports of a possible OPEC+ supply increase. Auto stocks also outperformed, with M&M rising sharply after posting a 19.6 per cent YoY jump in Q4 profit and announcing a ₹25.3 per share dividend.

Adani Group shares gained after media reports suggested the company was in talks with U.S. officials regarding an overseas bribery case. In contrast, Kotak Mahindra Bank fell 4.5 per cent due to a larger-than-expected drop in profit from higher provisions, dragging the Nifty Bank index down by 190 points (0.36 per cent) to 54,119.

The broader markets outperformed, with the Nifty Mid-cap and Small-cap 100 indices climbing 1.81 per cent and 1.02 per cent, respectively. All 17 major sectoral indices closed in the green, with Nifty Auto emerging as the top gainer, rising 1.85 per cent to a two-month high. Key contributors to the Nifty’s rise included Reliance Industries, ITC, and Adani Ports, while Kotak Bank, JSW Steel, and Axis Bank were the top drags.

With the gain, the market breadth was positive. Of the 2,984 NSE-listed stocks traded, 2,023 advanced, 865 declined, and 96 remained unchanged. Meanwhile, 29 stocks hit 52-week highs, 32 touched 52-week lows, 94 were locked in upper circuits, and 66 hit lower circuits.

Market Update at 12:15 PM: India’s key stock indices, the NSE Nifty 50 and BSE Sensex, rose around 0.5 per cent each, driven by strength in energy stocks amid a decline in crude oil prices. Analysts attributed the upbeat mood to continued foreign inflows over the past 12 sessions and growing optimism surrounding a potential India-U.S. trade agreement.

Out of the 13 key sectoral indices, nine traded higher. The broader markets also saw gains, with the Small-Cap and Mid-Cap indices rising by 0.6 per cent and 1.3 per cent, respectively.

Energy-related stocks led the rally, with the Oil & Gas index climbing 1.5 per cent and the / Energy index gaining 1 per cent. State-run refiners such as BPCL and Indian Oil moved up 4 per cent, while HPCL surged 7 per cent, reacting positively to crude oil's decline following an OPEC+ decision to increase supply.

The fall in oil prices is viewed as a positive for India, helping lower the import bill and ease inflationary pressures.

Adani Group companies saw strong buying interest after the Adani Group had engaged with the U.S. administration to resolve legal issues tied to an overseas bribery case.

Meanwhile, Kotak Mahindra Bank slipped 5.2 per cent after reporting a sharper-than-expected drop in quarterly profits due to higher provisions for non-performing assets.

Market Update 10:15 AM: Indian stock markets began the week on a positive note Monday, buoyed by improving global trade sentiment and continued foreign investor support.

As of 9:15 a.m. IST, the Nifty 50 index had risen 0.3 per cent to 24,419.5, while the BSE Sensex edged up 0.2 per cent to 80,661.62. This comes after both benchmarks marked their longest weekly winning streak of 2025 on Friday, driven by hopes surrounding a potential India-U.S. trade agreement.

Global cues remained supportive, with Wall Street ending higher on Friday after U.S. job data exceeded expectations and fresh optimism emerged over U.S.-China trade discussions. According to China’s commerce ministry, Beijing is currently reviewing a U.S. proposal for tariff negotiations.

Back in India, ten of the 13 key sectoral indices traded in the green. The broader markets also stayed strong, with both Small-cap and Mid-cap indices climbing nearly 0.4 per cent each.

Market sentiment remains optimistic, bolstered by consistent foreign portfolio investor (FPI) inflows, with Friday marking their 12th straight session of net buying — the longest such streak in two years.

However, Kotak Mahindra Bank saw its shares fall by 3 per cent after reporting a larger-than-expected drop in quarterly profit due to a spike in provisions for non-performing loans, despite healthy loan growth.

Pre-Market Update at 8:00 AM: Indian benchmark indices, Sensex and Nifty 50, are likely to begin Monday's session on a stronger note, taking cues from upbeat global market trends.

While trading activity in major Asian markets remained subdued due to regional holidays, Wall Street closed last week on a positive streak, with both the S&P 500 and Dow Jones registering gains for nine sessions in a row.

 At 7:20 AM, Gift Nifty was hovering around 24,510, showing a jump of 107 points compared to the previous close of Nifty futures.

U.S. stock markets closed higher on Friday, marking a second consecutive week of gains. The rally was supported by encouraging economic indicators and signs of easing trade tensions between the U.S. and China. The Dow Jones Industrial Average jumped 564.47 points (1.39 per cent) to finish at 41,317.43. The S&P 500 rose by 82.54 points (1.47 per cent) to end at 5,686.68, while the Nasdaq Composite advanced 266.99 points (1.51 per cent) to settle at 17,977.73. On a weekly basis, the Dow gained 3 per cent, the S&P 500 added 2.9 per cent, and the Nasdaq climbed 3.43 per cent.

Several major Asian stock markets remained closed on Monday due to public holidays, including Japan, South Korea, Hong Kong, and China. Meanwhile, Australian shares declined in early trading, with the S&P/ASX 200 index slipping 0.29 per cent following the re-election of Prime Minister Anthony Albanese. The Australian dollar also edged slightly lower, trading at 0.6439 against the U.S. dollar, marking a marginal drop of 0.06 per cent.

Crude oil prices saw a sharp decline of over 3 per cent following OPEC's decision to ramp up production, which is expected to enhance global supply levels. Brent crude dropped by 3.13 per cent to settle at USD 59.37 per barrel, while US WTI crude futures slipped 3.35 per cent, ending at USD 56.34. 

Foreign Institutional Investors (FIIs) were net buyers, purchasing Rs 2,769.81 crore worth of shares on May 02, 2025. Domestic Institutional Investors (DIIs) purchased shares worth Rs 3,290.49 crore during the same period. 

 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.