Indian equities closed in positive territory on May 4, but well off the day’s highs, as early optimism faded amid profit booking and global uncertainties. Benchmark indices had surged nearly 1 percent in intraday trade before losing momentum towards the close.
The BSE Sensex rose 355.90 points, or 0.46 percent, to end at 77,269.40, while the Nifty 50 gained 121.75 points, or 0.51 percent, to settle at 24,119.30. Trading remained largely range-bound in the latter half of the session.
Markets opened on a strong note with broad-based buying across sectors. However, as indices climbed, investors turned cautious and booked profits at higher levels, eroding much of the gains.
Buying interest was seen in frontline stocks such as Reliance Industries, Hindustan Unilever, Larsen & Toubro and Adani Ports & Special Economic Zone.
On the downside, stocks including Bharti Airtel, Kotak Mahindra Bank, Tata Consultancy Services and InterGlobe Aviation ended under pressure.
Metal, real estate, infrastructure and pharmaceutical stocks posted gains of around 0.5 percent to 1 percent. In contrast, IT, media and PSU banking stocks closed lower.
Broader markets outperformed benchmarks slightly, with mid cap and small cap indices rising about 0.5 percent.
According to Vinod Nair of Geojit Investments, sentiment was supported by favourable election trends in West Bengal and better-than-expected March-quarter earnings.
However, he noted that intermittent profit booking persisted due to uncertainty around US-led efforts to reopen the Strait of Hormuz amid tensions involving Iran. Crude oil prices staying below $110 a barrel offered some near-term comfort.
The Nifty’s inability to hold higher levels remains a concern. The index touched an intraday high of 24,290 before retreating. On the daily chart, it formed a narrow-bodied candle with a long upper wick—an indication of selling pressure at elevated levels. This pattern has appeared repeatedly in recent sessions, suggesting resistance at higher zones.
Mid-cap and small cap indices continued their upward trend but showed signs of hesitation. Both indices formed indecisive candle patterns, pointing to cautious sentiment at current levels.
The rupee slipped 16 paise to close at 95.08 against the US dollar, compared with the previous close of 94.92.
Market direction in the near term is likely to depend on geopolitical developments, particularly in the Middle East, along with crude oil price movements. These factors will be key for inflation trends, interest rate expectations, currency movement and corporate margins.
