By Our Business Correspondent
Domestic equity benchmarks recovered on Monday after the previous session’s sharp sell-off, supported by broad-based buying across sectors. Positive triggers such as robust April auto sales, favourable election trends in West Bengal, and stronger-than-expected Q4 earnings helped lift investor sentiment.
The benchmark indices opened on a firm footing, with the Nifty 50 approaching the 24,300 level in early trade. However, gains moderated during mid-session as investors booked profits at higher levels. Despite this, the index managed to close above 24,100, aided by strength in metal and healthcare stocks. Market participants remained cautiously optimistic, balancing domestic positives against persistent global uncertainties.
The S&P BSE Sensex rose 355.90 points, or 0.46%, to settle at 77,269.40, while the Nifty 50 advanced 121.75 points, or 0.51%, to close at 24,119.30. Among the key contributors, Reliance Industries gained 2.24%, Larsen & Toubro rose 2.18%, and HDFC Bank added 0.87%.
Broader markets outperformed the frontline indices, with mid-cap and small-cap segments witnessing stronger buying interest. Market breadth remained positive, reflecting improved risk appetite among investors.
On the macroeconomic front, India’s manufacturing activity showed only modest improvement. The HSBC India Manufacturing PMI rose to 54.7 in April from 53.9 in March, marking one of the slowest expansions in recent years. Growth in new orders and output remained subdued, although export demand provided some support. Meanwhile, rising input costs—driven by geopolitical tensions in West Asia—pushed inflationary pressures higher, with input prices increasing at the fastest pace in nearly four years.
Global cues remained mixed and continued to weigh on sentiment. Escalating tensions in West Asia, particularly around the Strait of Hormuz, and the US-led “Project Freedom” initiative to secure shipping routes contributed to volatility in energy markets. Brent crude prices surged close to $113 per barrel, raising concerns over inflation and external balances for oil-importing economies like India.
Currency and bond markets reflected the cautious mood. The rupee weakened against the US dollar, while yields on India’s 10-year government bond edged slightly lower. Gold prices declined, whereas the US Dollar Index and US bond yields firmed up.
Across global markets, Asian equities ended largely higher, while European shares declined amid renewed trade tensions following tariff threats from Donald Trump. US futures also indicated a weak opening for Wall Street.
Disclaimer: This report is for informational purposes only and should not be construed as investment advice.