Sensex opens 200 pts higher, Nifty above 18,100; IDFC First upbeat post Q4 nos

Markets opened on a positive note on May 2, 2023. The S&P BSE Sensex rose 0.42 per cent, or 254 points to 61,366.62 levels while the NSE's Nifty traded 70 points, or 0.39 per cent higher at 18,134.60 levels. Power Grid (up over 1 per cent) was the top gainer on the index while Kotak Mahindra Bank (down 1 per cent) was the biggest loser. 

Reliance Industries (RIL), Infosys, ICICI Bank, and L&T were the top contributors to the Sensex's gain. IDFC First Bank hit its 52-week high after posting robust numbers for the March quarter. 

In the broader market, mid and small-cap stocks rallied in trade. The S&P BSE SmallCap index rose 1 per cent to 29,215.58 levels while the S&P BSE MidCap index traded 0.99 per cent to 25,744.91 levels. 

"India outperformed the rest of Asia and the developed markets in April with a smart rally mainly assisted by the sudden change of strategy by the FIIs who have turned big buyers in the market in the last two trading days. The important trigger for this change of FII strategy is the appreciation of the rupee. The rupee, which had depreciated to 82.94 to the dollar in late February, is now around 81.80 and is expected to appreciate further on India’s improving current account deficit. That apart, the good corporate results, particularly from the banking space and record GST collections at Rs 1.87 lakh crores are aiding bullish sentiments. The market is resilient and the undercurrent is bullish," said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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On the sectoral front, barring auto, all the stocks were trading with gains in the morning trade.

GLOBAL MARKETS

In the overnight trade, US stocks ended little changed on Monday as investors took in the weekend auction of First Republic Bank and braced for this week's expected interest rate hike from the Federal Reserve. The KBW regional banking index dropped 2.7 per cent, while shares of JPMorgan Chase & Co (JPM.N), which won the auction of failed lender First Republic, rose 2.1 per cent. JPMorgan will pay the US Federal Deposit Insurance Corp $10.6 billion to take control of most of the regional bank's assets.