Sensex is currently up by 478 points, hovering around 80,980.20, while the NSE Nifty 50 is higher by 158 points
As the Indian stock market trades through the first half of Monday’s session on May 5, 2025, investor sentiment remains bullish. The BSE Sensex is currently up by 478 points, hovering around 80,980.20, while the NSE Nifty 50 is higher by 158 points, trading at 24,505.15. Markets have been witnessing strong momentum emanating from a cocktail of favorable global cues, ebbing trade tensions, falling crude oil prices, and steady foreign institutional investor (FII) inflows.
Key Drivers Behind Today’s Rally
Easing Global Trade Tensions
The Indian-American trade pact holds new promise. Negotiations that had been previously stalled are seen to be progressing, especially on tariff relaxations and service exports. This perspective instills some confidence in global investors, who have been searching for long-term value in Indian equities.
Robust FII Inflows
FIIs are showing consistent interest in the Indian equity space, having remained net buyers for 12 straight sessions. This streak marks the longest buying period by foreign investors in over two years. The sustained capital inflow is helping markets absorb any intermittent volatility with ease.
Falling Crude Oil Prices
Crude oil prices have seen a sharp drop of over $2 per barrel. The drop has followed OPEC+'s announcement of increased supply over the next quarter. For India, which imports more than 80% of its crude oil requirement, falling prices reduce inflationary pressure and improve the trade balance, leading to a favorable market outlook.
Sector-wise Performance
Information Technology (IT)
The sector of IT is among the upper end. Positive sentiment from the U.S. markets, where tech indices saw a sharp comeback last Friday, has brought in some traction for stocks in this space. Tech majors Infosys, TCS, and Wipro, trading up by 0.8-1.2%, gain amidst expectations of strong Q4 performance and deal wins.
Energy and Oil & Gas
The Oil Marketing Companies (OMCs), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), and Indian Oil Corporation Limited, are gaining as we speak, with crude prices falling, which is only expected to widen the refining margin. The broader optimism in the energy sector drives the energy index to over 1.2%.
Banking and Financial Services
Amalgamated movements occur in the banking sector. Kotak Mahindra Bank plummets over 5.5% after posting disappointing Q4FY25 results, wherein the lender reported standalone net profits dropping 14% YoY vis-à-vis analyst expectations. Large private sector banks such as HDFC Bank and ICICI Bank trade with modest gains.
The PSU banking index seems under pressure as well, weighed down largely by the State Bank of India (SBI), wherein the Q4 profit, due to higher provisioning and weak loan growth, fell 10% YoY.
Notable Stock Movements
Adani Ports
Adani Ports shares are among the top gainers in the Nifty 50 today. The stock has surged due to a positive business outlook, coupled with stable cargo volumes, thus strengthening the stock against disruptions at the global shipping front.
Bajaj Finserv
The financial services giant is witnessing strong buying interest. Market participants are optimistic about its diversified growth model and strong insurance arm performance.
Kotak Mahindra Bank
The stock is under selling pressure following weak quarterly earnings. The bank’s Q4FY25 net profit decline was attributed to higher provisions and tepid growth in its loan book. The market reaction underscores concerns over asset quality and margin compression.
SBI
SBI shares are down after it missed street estimates in Q4. While loan growth remains relatively steady, higher provisioning for bad loans has dragged down overall profitability.
Macroeconomic Highlights
GST Collections Hit Record High
India’s Goods and Services Tax (GST) collections for April 2025 have reached ₹2.37 lakh crore, registering a nearly 13% year-on-year increase. This marks the highest ever GST mop-up since the tax’s implementation in 2017. The high tax collection indicates a strong recovery in business activity and consumer demand.
Rupee Strengthens Against US Dollar
The Indian rupee is trading stronger today, supported by strong FII inflows and declining crude prices. A softer U.S. dollar in global markets is also helping the rupee appreciate. A stronger rupee typically eases import costs and supports sectors such as aviation and oil marketing.
Technical and Market Outlook
Technical analysts observe that the Nifty 50 is maintaining a strong uptrend. The index has immediate resistance at 24,600, and if breached, it could test the 24,857–25,000 zone. The Sensex also appears set for a move toward the psychological 81,000 mark. Key support levels are seen at 24,200 for Nifty and 80,300 for Sensex.
Momentum indicators, such as the Relative Strength Index (RSI), are not yet in overbought territory, suggesting there is more room for an upside move before any significant correction.
Global Market Snapshot
U.S. Markets: Wall Street ended last week on a strong note, with all three major indices closing over 1% higher. A stronger-than-expected jobs report and optimism about economic resilience have buoyed investor confidence.
Asian Markets: Most major Asian markets are closed today for public holidays, including Japan and China. However, the Australian index is trading slightly lower, reacting to falling commodity prices and cautious corporate guidance from mining firms.
Outlook Ahead
Looking ahead, investor focus will shift to the Reserve Bank of India’s monetary policy meeting scheduled later this week. Although no rate hike is expected, the central bank’s commentary on inflation and liquidity will be closely scrutinized. Additionally, Q4 corporate earnings from key companies like Tata Motors, Larsen & Toubro, and Axis Bank are expected to influence market direction.
As the trading day progresses, Indian equities are showcasing strength and resilience amid favorable domestic and global conditions. With strong GST collections, falling oil prices, and sustained FII interest, the markets appear poised to continue their upward trajectory. However, earnings surprises—both positive and negative—will likely drive sectoral rotation and stock-specific action over the next few sessions.