Sensex, Nifty End Higher Amid Profit Booking in Metals
The Indian stock market ended marginally up on May 2, with the Sensex rising 259.75 points and Nifty adding 12.50 points. Despite the positive global cues, the domestic indices were volatile during the day, with profit booking in auto, FMCG, and metal stocks resulting in the erasure of most of the earlier gains.
The Sensex, which started the day at 79,511.50 points, fluctuated throughout the trading session, before finally closing at 79,771.25 points. The Nifty, which began the day at 23,513.90 points, also had a similar trajectory, eventually closing at 23,526.40 points.
The profit booking in metal stocks was a major contributor to the volatility in the market. Stocks like Hindalco, Tata Steel, and JSW Steel were among the top losers, with their prices falling by up to 4%. The metal sector was the worst performer among the BSE sectoral indices, with a decline of over 2%.
The auto sector also witnessed profit booking, with stocks like Maruti Suzuki, Hero MotoCorp, and Tata Motors falling by up to 2%. The FMCG sector was another area that saw profit booking, with stocks like Hindustan Unilever, ITC, and Nestle India declining by up to 1%.
On the other hand, the IT sector was the major gainer, with stocks like TCS, Infosys, and Wipro rising by up to 2%. The banking sector also witnessed gains, with stocks like ICICI Bank, HDFC Bank, and Axis Bank increasing by up to 1%.
Despite the profit booking in some sectors, the market was supported by positive global cues. The US markets ended higher on May 1, with the S&P 500 and the Nasdaq composite index rising by 0.5% and 1.2%, respectively. The global market sentiment was also boosted by the release of positive economic data from the US, which showed that the country’s GDP grew by 1.4% in the first quarter.
The Indian market was also supported by positive domestic cues. The country’s services sector continued to show signs of recovery, with the IHS Markit India Services PMI rising to 55.3 in April from 53.7 in March. The PMI, which is a key indicator of the health of the services sector, has been rising for the past five months, indicating a gradual recovery in the sector.
The market was also supported by the improving inflation picture. The wholesale price index (WPI) inflation, which is a key indicator of inflationary pressures, declined to 3.1% in April from 3.3% in March. The decline in WPI inflation was attributed to a decline in the prices of food items, including vegetables and fruits.
In conclusion, the Indian market ended marginally up on May 2, despite profit booking in auto, FMCG, and metal stocks. The market was supported by positive global cues and domestic data, including the services PMI and WPI inflation. As the market continues to navigate the challenges posed by the ongoing pandemic, investors will be closely watching the economic data and global cues to gauge the direction of the market.
