Last Updated on May 4, 2026 11:46 pm by BIZNAMA NEWS
By Our Business Correspondent
Domestic equity indices staged a resilient recovery on Monday, clawing back from the previous session’s sell-off as a cocktail of strong corporate earnings and robust sectoral data revitalized investor sentiment. The rebound was underpinned by impressive April auto sales and favorable political trends, though escalating geopolitical friction in West Asia kept a lid on the day’s highs.
The S&P BSE Sensex finished 355.90 points, or 0.46%, higher at 77,269.40, while the Nifty 50 reclaimed the 24,100 level, ending at 24,119.30, up 0.51%. The Nifty had flirted with the 24,300 mark in early trade before mid-session profit-taking pared gains. Heavyweights led the charge, with Reliance Industries (up 2.24%), Larsen & Toubro (up 2.18%), and HDFC Bank (up 0.87%) providing the necessary muscle.
The broader market showed even greater appetite, significantly outperforming the frontliners. The BSE MidCap and SmallCap indices surged 0.62% and 1.07%, respectively, supported by a healthy market breadth where gainers comfortably outnumbered laggards.
On the macroeconomic front, the HSBC India Manufacturing PMI rose to 54.7 in April from 53.9 in March. While indicating expansion, it remains one of the slowest growth rates in recent years. More concerning for the Reserve Bank was the spike in input costs—rising at their fastest pace in 44 months—largely attributed to the volatile situation in West Asia.
The global backdrop remained a source of significant anxiety. Brent crude prices surged nearly 5% to $113.53 per barrel amid heightened risks in the Strait of Hormuz. The waterway, critical for 20% of global oil shipments, is currently plagued by naval mines. While the U.S. has initiated “Project Freedom” to secure shipping routes, the threat of supply disruptions remains acute.
Compounding the global gloom, European markets retreated following Donald Trump’s threat to impose 25% tariffs on EU vehicle imports. Locally, the currency felt the heat as the rupee weakened to 95.23 against the dollar.
While domestic factors like Q4 earnings and manufacturing output provide a floor for the market, the dual headwinds of $110+ oil and a softening rupee suggest that the path forward for Indian equities remains paved with caution. Investors now look to further earnings releases and geopolitical developments in the Strait for the next directional cue.
Disclaimer: This report is for informational purposes only and should not be construed as investment advice.