Indian markets managed to close in the green on May 4 but significantly off the early highs. After a strong start that pushed indices higher by nearly 1% during the day, much of those gains faded by the closing bell.
The Sensex ended up by 355.90 points, or 0.46%, at 77,269.40, while the Nifty closed 121.75 points higher, or 0.51%, at 24,119.30. Trading was however limited in a tight range.
Let’s take a look at the key highlights of today’s trading session –
From strong start to late-day slowdown
The day began on a positive note, with buying seen across sectors. However, as the session progressed, investors started booking profits at higher levels. This selling pressure trimmed much of the early gains.
Winners and losers in today’s trade
Among the gainers, stocks like Adani Ports & Special Economic Zone, Reliance Industries, Hindustan Unilever, and Larsen & Toubro saw buying interest.
On the other hand, pressure was visible in stocks such as Bharti Airtel, Kotak Mahindra Bank, Tata Consultancy Services, and InterGlobe Aviation.
Sector check: Metals shine, IT drags
Sector-wise, metals, real estate, infrastructure, and pharmaceutical stocks ended with gains of around 0.5% to 1%.
However, information technology, media, and public sector banking stocks ended lower.
Broader markets performed relatively better. Mid-cap and small-cap indices gained around 0.5%.
Market outlook: What experts are saying
Vinod Nair, Head of Research, Geojit Investments, said, “Investor sentiment remained supported by a favourable election outcome in West Bengal and a better-than-expected Q4 earnings, helping markets look past Middle East-related concerns. However, intermittent profit booking persisted amid uncertainty surrounding the U.S. “Project Freedom” initiative to reopen the Strait of Hormuz. While the resolution path may take time, optimism around gradual progress continues. Crude prices holding below $110 are providing near-term comfort. Going ahead, market direction will hinge on geopolitical developments and oil price trends, given their impact on inflation, interest rates, the rupee, and corporate margins.”
Nifty: Signs of resistance at higher levels
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, highlighted a key technical trend, “Nifty kicked off the first trading session of May on a strong note, advancing to an intraday high of 24290. However, profit booking at elevated levels erased a significant portion of the gains. A late-session recovery attempt helped the index recoup some losses and close the day at 24119, up 0.51%.”
He further added, “On the daily chart, Nifty formed a thin-bodied candle with a prominent upper wick, signalling persistent selling pressure at higher levels. Notably, this marks the fourth occurrence in the past seven sessions where the index has formed a similar upper wick, highlighting its inability to sustain gains at elevated zones.”
Broader market trend and market breadth
While midcap and small-cap indices continued to move higher, their chart patterns indicated some hesitation.
“In the broader market, the Midcap Index formed a thin-bodied candle with wicks on both sides, indicating indecision. The Small Cap Index, while continuing its higher high formation, also ended with a similar candle structure, reflecting hesitation at current levels,” said Sudeep Shah, Head – Technical and Derivatives Research.
Rupee movement
The Indian rupee weakened slightly during the session, ending 16 paise lower at 95.08 against the US dollar, compared to its previous close of 94.92.
