Stock market today: The Indian share market on Tuesday, (May 7), inched higher tracking a rally in global stocks on renewed confidence that major global central banks will start lowering interest rates this year.

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Last seen, BSE Sensex rose 0.13 per cent or 94.73 points at 73,990.27 and NSE Nifty was up 0.16 per cent or 35.2 points at 22,477.9.

In the broader market, Nifty Midcap 100 and Smallcap 100 traded lower. Meanwhile, Nifty Bank was up 0.16 per cent at 48,973.75. 

"A significant near-term trend in the market is the underperformance of the Indian market despite positive global cues due to selling by FIIs which touched Rs 5525 crores in the three trading sessions in May so far. But there is nothing unusual about this since FIIs sell when the US bond yields are attractive. Perhaps, the more significant factor might be the apprehensions emanating from the unexpectedly low turnout in the elections, so far. One view is that the definite and smooth victory of the ruling dispensation is a bit uncertain now," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Dr. V K Vijayakumar added the market which has already discounted a BJP/NDA victory is a bit unsure now. Perhaps, this can be the reason for the apprehension in the market and the bulls shedding their aggressive stance. 

Further, Dr. V K Vijayakumar said that in the last one month, the VIX has spiked by 46 per cent and is hovering around 16.6 now. This means volatility and uncertainty will continue for some time. Meanwhile, investors can use the market weakness to buy high-quality large caps on dips. Leading private sector banking names, automobile majors and the leading telecom companies are fundamentally strong and fairly valued.

BUZZING STOCKS

Marico shares were up over 8 per cent after the company released its Q4 numbers. 

Godrej Consumer Products shares were up nearly 6 per cent after the company reported good Q4 results.

Balmer Lawrie shares were up over 6 per cent after the company announced to consider buying back shares in a meeting on May 29.

HPCL and BPCL shares traded in the positive territory after both companies to consider buying back shares in a meeting on May 9.

Conversely, Lupin shares were down over 2 per cent after the company posted Q4 results.

Route Mobile shares were down over 4 per cent after the company reported weak Q4 results. 

Muthoot Microfinance shares were down over 2 per cent after the company reported its Q4 numbers.

GLOBAL MARKETS 

Asian shares made 15-month highs on Tuesday on renewed confidence of U.S. interest rate cuts, while traders waited on a policy meeting in Australia later in the day and had a close eye on a falling yen.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3 per cent in early trade. Hong Kong shares traded marginally lower, having ridden a wave of heavy buying from mainland investors to lift the Hang Seng index more than 14 per cent higher in a 10-day winning streak, its longest since 2018.

(With inputs from agencies.)

Catch all the highlights of the May 7 session on Dalal Street here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.

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