Equity indices close flat, metal stocks shine
Mumbai, May 3, 2021
India's key benchmark equity indices closed on a flat note on Monday as robust quarterly results, along with an upbeat corporate outlook, aided in the recovery from the early losses.
The two indices opened lower in line with other Asian markets and post the unexciting performance of the BJP in the recently-concluded state elections.
Globally, Asian share markets started off slow on Monday, as holidays in China and Japan thinned volumes.
However, European stocks drifted higher on Monday after strong euro zone factory activity and German retail sales data highlighted a quick rebound in economic growth.
On the domestic front, steady corporate earnings and positive management commentaries supported the pullback in the market.
Among sectors, metals and FMCGs were the main gainers while banks, media and realty were the main losers.
Consequently, the S&P BSE Sensex closed at 48,718.52, lower by 63.84 points, or 0.13 per cent, from its previous close.
The Nifty50 of the National Stock Exchange ended the day's trade at 14,634.15, up 3.05 points, or 0.02 per cent, from its previous close.
"Nifty bounced up smartly from the intra day lows going against the Asian negative mood. 14,694-14,747 is the next resistance band for the Nifty while 14,493 is the support level," said Deepak Jasani, Head of Retail Research at HDFC Securities.
"Broader market continues to do well as is clear from the positive advance decline ratio while frontline stocks remain volatile based on institutional flows."
Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "As daily coronavirus cases near the 4 lakh mark, the Supreme Court urged the Centre and states to consider imposing a lockdown or stricter restrictions to rein in the Covid-19 spread. Even industry body CII urged the government to take strongest national steps including curtailing economic activity to contain the spike in Covid-19 cases in the country."
"This, along with steady corporate earnings and positive management commentaries, supported the pullback in the market. Metals rallied after the steel companies hiked the prices once again in May. Apart from metals, sugar stocks were also in limelight post the reports that the raw sugar price has rebounded on account of poor production outlook in top exporter Brazil, where dry weather has curbed yields."