Indian Stock Market Soars: Sensex & Nifty 50 Rise as Investors Gain ₹4 Lakh Crore

On May 5, the Indian stock market experienced a notable uptick, with both the Sensex and Nifty 50 closing in the green. Key players like HDFC Bank, Mahindra and Mahindra, and ITC led this positive momentum. The Sensex gained 295 points, bringing it to 80,796.84, while the Nifty 50 rose 114 points to settle at 24,461.15. The mid-cap and small-cap sectors notably outperformed their larger counterparts, further boosting investor confidence.

Surge in Mid and Small-Cap Stocks

The BSE Midcap index soared by 1.45%, and the Smallcap index climbed 1.23%, contributing significantly to the overall market capitalization of BSE-listed firms, which jumped to nearly ₹427 lakh crore from ₹423 lakh crore in the previous session. This shift enriched investors by approximately ₹4 lakh crore within a single trading day.

Key Drivers Behind Market Gains

Several factors contributed to the Indian stock market’s robust performance:

Top Gain Contributors: Major stocks such as HDFC Bank, Mahindra and Mahindra, ITC, Reliance Industries, and Adani Ports played pivotal roles in driving the Sensex higher.
Market Dynamics: Amid an active earnings season, stock-specific movements have been prominent. Encouraging macroeconomic data, easing trade tensions, foreign capital inflows, declining crude oil prices, and a weakening dollar are all positive influences. However, rising tensions between India and Pakistan remain a concern.

Vinod Nair, head of research at Geojit Investments Limited, noted, “While the market sustains its upward trajectory, the enthusiasm is somewhat tempered. The influx of foreign investments and record GST collections in April reflect economic resilience, fostering cautious optimism. A weaker dollar and lower oil prices have also boosted FII sentiment.” Nair cautioned, however, that market momentum is shifting towards specific stocks and sectors, influenced by recent earnings reports.

Highlights from the Nifty 50

Top Gainers: Of the 50 stocks in the Nifty 50, 38 closed positively. Leading the pack were:
- Adani Enterprises: +7.44%
- Adani Ports: +6.27%
- Trent: +4.51%
- Shriram Finance: +4.24%
Top Losers: Conversely, the following stocks faced declines:
- Kotak Mahindra Bank: -4.59%
- JSW Steel: -1.85%
- ONGC: -1.45%
- State Bank of India (SBI): -1.17%

Sectoral Performance Overview

Banking Sector: The banking sector faced some profit booking, leading to a slight decline in indices:
- Nifty Bank: -0.36%
- Private Bank: -0.80%
- PSU Bank: -0.04%
Strong Performers: In contrast, several sectors thrived:
- Nifty Auto: +1.85%
- Oil and Gas: +1.70%
- FMCG: +1.22%
- Metal: +0.96%

Trading Activity Highlights

Most Active Stocks: In terms of trading volume, Vodafone Idea (31.64 crore shares), Easy Trip Planners (26.45 crore shares), and YES Bank (4.93 crore shares) topped the list.
Notable Surges: Eleven stocks, including JHS Svendgaard Retail Ventures and Swiggy, surged over 10% on the NSE.
Stocks in Decline: Meanwhile, G-Tec Jainx Education and Ksolves India saw declines of over 10%.

Market Dynamics and Trends

Circuit Limits: The day saw 94 stocks reach their upper circuit limits while 66 stocks hit lower circuit limits.
Advance-Decline Ratio: The ratio of declining stocks to advancing ones was unfavorable, with 2,023 stocks declining, 865 advancing, and 96 remaining unchanged.
52-Week Highs and Lows: A total of 78 stocks achieved new 52-week highs, including Anupam Rasayan India and Force Motors, while 63 stocks, such as Quick Heal Technologies, reached 52-week lows.