Equities were on the back foot at the opening on May 2 amid a cautious global set-up. The Nifty stood at 18,067.70 levels, down 80 points, or 0.44 per cent against the previous close while the S&P BSE Sensex quoted at 61,094.28, down 260 points, or 0.42 per cent.

InterGlobe Aviation shares were in demand as the stock hit a 52-week high of Rs 2,235.95 as GoFirst's loss is its gains. Central Bank of India (down 5 per cent) and Bank of Baroda (down over 2 per cent), among other lenders were under pressure owing to the GoFirst crisis. Go First, which filed for bankruptcy on Tuesday, owes financial creditors 65.21 billion Indian rupees ($798 million), its bankruptcy filing showed.

"Currently, there are two significant macroeconomic trends that might impact equity markets. One, the US economy is slowing down and leading indicators like new job generation suggest a further deceleration in the US economy and a possible recession by the end of 2023. Two, in contrast to this trend in the US, is the resilience of the Indian economy with leading indicators like GST collections, FDI, credit demand and corporate results reflecting optimism. This apparent economic outperformance by India and the rupee appreciation have triggered a reversal in FII stance nudging them to buy in India," notes Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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During the last four trading days, FIIs have bought equity for Rs 8,212 crore. This can impart resilience to the Indian market even in the context of weakness in the mother market US and global markets. The fresh bout of weakness in the US markets has been triggered by the sharp correction of 5 per cent in the US Regional Bank Index. Weakness in the market caused by global concerns can be used by investors to buy high-quality stocks, the analyst added. 

BUZZING STOCKS

Among buzzing stocks, Tata Steel traded flat after the steel major reported a sharp fall of over 84 per cent in its consolidated net profit at Rs 1,566.24 crore, triggered by lower income. It was a steep fall from Rs 9,835.12 crore logged in FY22Q4.  Ambuja Cements traded over half a per cent higher post-March quarter numbers. Nirmal Bang Securities notes that the company's strong brand equity in the retail industry, as well as it's cost-reduction and product-enhancement initiatives, are all commendable. "Therefore, we maintain our BUY rating on the stock with a target price (TP) of Rs 496, valuing it at 20x FY25E EV/EBITDA."

GLOBAL MARKET

Asian stocks fell for a second session in a row on Wednesday, as global investors contended with signs of a softening U.S. economy, and were in full flight from US regional lenders, ahead of an expected US interest rate hike later in the day. In commodities, oil prices sank about 5 per cent to a five-week low on Tuesday on concerns about the economy as US politicians discuss ways to avoid a debt default and investors prepare for more rate hikes this week, Reuters reported.