Nifty IT, Metal and PSU indices declined nearly 1%, Sensex down 160 points

The Nifty experienced a decrease and remained within a narrow range during the day, resulting in a loss of 58 points at 18089 levels. The FMCG sector saw significant gains, while other sectors such as aerospace, cement, paints, and tires also benefited from the drop in oil prices.

Investors are waiting for the outcome of the US Federal Reserve meeting to gain insight into the future rate cycle. However, the market structure remains positive due to healthy macro data, strong earnings, and FII buying. Furthermore, several PSU stocks from various sectors have been on a strong rally in the past few days. On May 3, the Nifty snapped a 6-day winning streak and declined by 0.32% or 57.8 points at 18089.9.

The advance-decline ratio ended marginally in the positive, with broad market indices ending in the positive. On Wednesday, European stocks rallied while Asian markets fell, as hopes rose that the Federal Reserve signaled that US interest rate hikes could soon peak.

According to a monthly survey, Indian services and new business grew at the fastest pace since June 2010. The seasonally adjusted S&P Global India Services PMI rose from 57.8 in March to 62 in April, indicating the fastest output growth since mid-2010. Additionally, the Composite Output Index rose from 58.4 in March to 61.6 in April, the highest reading since July 2010. The rupee closed at 81.82 against the US dollar, up 0.07 percent from Tuesday’s close of 81.88, while the yield on the 10-year note fell 8 basis points to 7.014%.

The ongoing fourth quarter earnings season will set the trend for markets, with key areas of focus including management commentary, revenue growth, future plans, raw material trends, margin improvement, global stimulus, oil prices, and currency movements. The Nifty witnessed a much-needed respite in April, gaining nearly 4% after spending four months in a correction phase. Participants should focus on accumulating quality stocks during dips, as signs point to the prevailing tone continuing.

Here are some key points on Taday’s Market

• On May 3, the Nifty experienced a decrease and remained within a narrow range, resulting in a loss of 58 points at 18089 levels. The market structure, however, remains positive due to healthy macro data, strong earnings, and FII buying. Several PSU stocks from various sectors have been on a strong rally in the past few days.
• The FMCG sector saw significant gains, while other sectors such as aerospace, cement, paints, and tires also benefited from the drop in oil prices.
• Investors are waiting for the outcome of the US Federal Reserve meeting to gain insight into the future rate cycle. On Wednesday, European stocks rallied while Asian markets fell, as hopes rose that the Federal Reserve signaled that US interest rate hikes could soon peak.
• According to a monthly survey, Indian services and new business grew at the fastest pace since June 2010. The seasonally adjusted S&P Global India Services PMI rose from 57.8 in March to 62 in April, indicating the fastest output growth since mid-2010. Additionally, the Composite Output Index rose from 58.4 in March to 61.6 in April, the highest reading since July 2010.
• The rupee closed at 81.82 against the US dollar, up 0.07 percent from Tuesday’s close of 81.88, while the yield on the 10-year note fell 8 basis points to 7.014%.
• The ongoing fourth quarter earnings season will set the trend for markets, with key areas of focus including management commentary, revenue growth, future plans, raw material trends, margin improvement, global stimulus, oil prices, and currency movements.
• The Nifty witnessed a much-needed respite in April, gaining nearly 4% after spending four months in a correction phase. Participants should focus on accumulating quality stocks during dips, as signs point to the prevailing tone continuing.