NIFTY 50 opens 50 points higher at 22,645, Sensex jumps 150 points

Benchmark Indices

NSE NIFTY 50 and the 30-share BSE SENSEX started the trading session on Thursday higher. The SENSEX gained by +0.18% trading above the 74,600 level, while the NIFTY rose by +0.21% hovering around the 22,600 level. India VIX, a gauge of volatility, has surged by 6.78% and surpassed the level of 13, which indicates bouts of volatility in Thursday’s session.

US Markets

On Wednesday, US stocks closed with losses as investors assessed economic data indicating increasing labour costs and declining consumer confidence. This came on the day of a significant Federal Reserve policy decision regarding the direction of interest rates.

US Fed meeting outcome

On Wednesday, the U.S. Federal Reserve maintained interest rates at their current levels and indicated a continued inclination towards potential future reductions in borrowing costs. However, it raised concerns about recent disappointing inflation figures, suggesting that any rate cuts might be postponed for some time.

While Chairman Powell noted that rate hikes were improbable, he hinted at the possibility of an extended period of keeping the benchmark policy rate within the 5.25%-5.50% range. These rates have been in effect since July.

Top Gainers and Losers

Within the Nifty 50 space, Power Grid (+2.05%), BPCL (+1.64%) and M&M (+0.98%) are among the top gainers, while Kotak Bank (-3.95%), Hindalco (-2.37%) and Maruti (-2.1%) are among the top losers.

Broader Indices

In the broader markets Nifty Midcap 100 showed marginal gains of 0.04% to trade around the 50,800 level. Nifty Smallcap 100 traded slightly higher by 0.6%. Market breadth remains positive as 1,169 stocks advance, while 746 stocks decline.

Sectoral Performance

Nifty FMCG, Nifty Pharma and Nifty Financial Services were among the top gainers. Nifty Realty and Nifty IT were among the top losers.

Commodities

On Wednesday, oil prices dropped by approximately 2% to reach a seven-week low. This decline was influenced by several factors, including an unexpected increase in U.S. crude stocks, the possibility of a ceasefire agreement in the Middle East, and ongoing concerns about persistent U.S. inflation. These factors have subdued expectations for the speed of interest rate cuts and the growth of oil demand.

Stocks in F&O Ban - Stocks that are banned for trading in the F&O segment on May 02, 2024, are BIOCON and VODAFONE IDEA.