Sensex, Nifty slip from day's high, end 0.40% higher; Tata Steel gains over 2% ahead of Q4 nos

After starting on a promising note, Dalal Street bulls lost momentum as they failed to capitalise on gains, thus causing the headline indices to settle just 0.40 per cent higher on May 2, 2023. The S&P BSE Sensex rose 242 points to close the session at 61,354.71 points while the NSE's Nifty gained 70 points to end at 18,134.75.

On the Sensex pack, Tech Mahindra (up nearly 3 per cent) was the top gainer, followed by NTPC and Tata Steel - both up over 2 per cent. 

"Defying the trend in global peers, Indian benchmark indices continued their upward momentum, fuelled by strong Q4 earnings and favourable domestic macroeconomic data. The manufacturing PMI surpassed expectations due to an increase in new business, moderation in price pressures, and improved supply chain conditions. Additionally, the GST collection in April was the highest recorded to date. While Western markets traded with mild cuts ahead of the US Fed policy announcement, the domestic market benefited from strong inflows by FIIs," said Vinod Nair, Head of Research at Geojit Financial Services.

The second-rung stocks once again fared better than large-cap stocks. The S&P BSE MidCap index rallied 0.74 per cent while the S&P BSE SmallCap index added 0.63 per cent.

Buzzing stocks

Tata Steel ended over 2 per cent higher ahead of its March quarter numbers due later in the day while shares of RVNL were locked in the upper circuit after bagging an order worth over Rs 2,000 crore in Rajasthan. Investors were also impressed by IDFC First Bank as the scrip hit a 52-week high on robust March quarter numbers and analysts' upgrades. Besides, energy stocks were in demand in today's trade as the Nifty Oil & Gas index jumped as high as 1 per cent. The surge in the sector was on the back of multiple triggers including windfall tax cut, LPG price revision, and new gas policy among others.

GLOBAL MARKETS

Global shares fell on Tuesday, as caution set in ahead of the Federal Reserve's upcoming policy meeting, while bumper profits at Europe's biggest bank gave financial stocks a boost. In the currency markets, the Aussie dollar was the standout performer, rising by as much as 1.3% after the Reserve Bank of Australia's decision to raise interest rates, having indicated at its last policy meeting that it may not tighten monetary policy any further.