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Sensex tops 81K, Nifty nears 24,600: Why stock market is rising today

Sensex tops 81K, Nifty nears 24,600: Why stock market is rising today

The BSE benchmark Sensex climbed 766.49 points, or 0.96 per cent, to hit 81,008 today. The NSE barometer Nifty was trading at 24,585.85, up 251.65 points or 1.03 per cent.

Amit Mudgill
Amit Mudgill
  • Updated May 2, 2025 11:04 AM IST
Sensex tops 81K, Nifty nears 24,600: Why stock market is rising todayAdani Ports led Sensex gainers, rising 6 per cent to 1,290 on healthy Q4 results. Maruti Suzuki, Eternal, Tata Motors and IndusInd bank climbed 2-3 per cent each. 

Benchmark indices Sensex and Nifty were trading 1 per cent higher each in Friday's trade, as worries over trade war eased after China said it was evaluating the possibility of trade talks with the US. A sharp drop in oil prices, in-line auto sales numbers or April and all-time high GST numbers also added to the sentiment. 

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After a public holiday on account of Maharashtra Day, the BSE benchmark Sensex climbed 766.49 points, or 0.96 per cent, to hit 81,008 today. The NSE barometer Nifty was trading at 24,585.85, up 251.65 points or 1.03 per cent. 

"Overall trend for the Nifty remains bullish, as it continues to trade above all key moving averages. Immediate support for the Nifty is placed at 24150, below which it could further fall towards 23870. On the higher side, 24,450-24,500 band is expected to continue acting as a significant resistance band," said Devarsh Vakil, Head of Prime Research at HDFC Securities. 

Adani Ports led Sensex gainers, rising 6 per cent to 1,290 on healthy Q4 results. Maruti Suzuki, Eternal, Tata Motors and IndusInd bank climbed 2-3 per cent each. In the broader market, 2,307 shares advanced against 1,205 that declined today.

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Easing trade tensions

Kranthi Bathini of WealthMills Securities said the US-China trade tensions has eased as both the nations expressed willingness to start trade negotiations. He noted that the US Trade Representative stated that trade deals with some of US’ major trading partners are likely within weeks, providing comfort to global markets. 

"In the US, signs of cooling labour market (jobless claims rose by 18,000) and weakening manufacturing activity, raised fresh concerns. This comes on the heels of a dismal GDP report, which showed that US GDP shrank by 0.3 per cent in Q1 2025," he noted.

Oil prices, auto sales data

Vakil noted that oil prices have recorded the most significant monthly drop in almost three and a half years after Saudi Arabia signalled a move toward producing more and expanding its market share. Besides, Indian auto majors reported April monthly sales numbers in line with market expectations, with M&M leading the pack, he said.

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GST data
India's Goods and Services Tax (GST) collection climbed 12.6 per centYoY to a record high of about Rs 2.37 lakh crore in April. This is the highest monthly collection since the tax was introduced in 2017. GST revenue from domestic transactions rose 10.7 per cent to about Rs 1.9 lakh crore, while imported goods were up 20.8 per cent to Rs 46,913 crore, Vakil of HDFC Securities said.

India-US  trade deal hopes
In a note, Nomura said India’s relative tariff advantage will sustain, due to its first-mover advantage on the trade deal. India and the US have already signed the terms of reference on a bilateral trade agreement, which provides a roadmap for negotiations, it noted. 

"Details are not known, but news reports suggest the agreement has 19 chapters, covering tariff and non-tariff barriers, trade in goods and services, rules of origin, customs facilitation, digital trade and data storage, agriculture and market access, and intellectual property rights, among others," it said. 

What's ahead?

Historically, JM Financial said, Nifty has exhibited only an average price seasonality in the month of May, as the NSE benchmark has closed in the green on six out of past 10 occasions, with an average return and a median return of 1.5 per cent and 2 per cent, respectively.

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VK Vijayakumar, Chief Investment Strategist at Geojit Investments said at the current juncture of high valuations (Nifty trading at above 20 times estimated FY 26 earnings) and high India-Pak tensions, the near-term risk-reward is not in favour of high reward. He asked investors to play it safe by increasing the cash component in the portfolio even while remaining invested.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: May 2, 2025 10:31 AM IST
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