FIRST TRADE: Sensex rises over 100 pts, Nifty above 22,600; BPCL, Asian Paints, M&M up over 1%

Stock market today: The Indian share market on Thursday (May 2) edged higher after the U.S. Federal Reserve kept interest rates unchanged and indicated that rate cuts could be delayed, with a fall in oil prices and strong domestic auto sales numbers also possibly boosted sentiment.

Last seen, S&P BSE Sensex was up 0.22 per cent or 138.26 points at 74,647.4 and the 50-scrip gauge rose 0.21 per cent or 47.7 points at 22,652.1. 

"As trading for May begins there are mixed cues for the market, but broadly positives outweigh negatives. The Fed commentary is cautious as Powell’s remark that 'a rate increase is unlikely' is regarded by the market as dovish," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Dr. V K Vijayakumar added it is certain that the number of rate cuts this year if at all that happens, will be far lower than initially expected. This is a headwind for global equity markets.

On the domestic front, Dr. V K Vijayakumar believes the cues are strongly positive as India’s GDP is expected to continue the growth momentum with above 7 per cent growth in FY25. It appears that the market is discounting India’s growth outperformance. In April while the S&P 500 is down by 4.2 per cent, Nifty is up by 0.7 per cent. This outperformance can continue, he added.

Further, the sharp five per cent decline in crude triggered by expectation of a ceasefire in East Asia is negative for ONGC and positive for tyres, paints, and adhesives which use petroleum as inputs."

Meanwhile, in the broader market, Nifty Midcap 100 and Smallcap 100 traded nearly half a per cent higher. Nifty Bank was up 0.17 per cent at 49,480.35. 

BUZZING STOCKS

Indus Towers shares were up over 1 per cent after the company posted operationally good Q4 results.

Indiamart Intermesh shares were up over 3 per cent after the company reported mixed Q4 results.

BSE shares were up over 2 per cent after changes in rates of the equity derivatives segment and new transaction charges will apply from  May 13 to May 31.

MOIL shares were up over 7 per cent after the company's grade manganese ore prices increased by 40 per cent.

Mishra Dhatu Nigam shares were up over 2 per cent after the company received an order worth Rs 139 crore.

GLOBAL MARKETS 

Asian stocks got off to a shaky start on Thursday after the Federal Reserve flagged delays to interest rate cuts, while the dollar fell heavily on the yen in what traders reckoned was Japanese intervention.

Oil fell sharply overnight as the prospect of cuts seemed more distant and after a surprise jump in U.S. stockpiles, with Brent crude futures hitting a seven-week low of $83.44. 

(With inputs from agencies.)

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