SENSEXand NIFTY open in green, Kotak Bank up 4.8%, volatility shoots up

Benchmark Indices - NSE NIFTY 50 and the 30-share BSE SENSEX started the trading week in the green on Monday. The SENSEX gained by +0.32% trading above the 74,000 mark, while the NIFTY rose by +0.24%, hovering above the 22,500 level. India VIX, a gauge of volatility, has spiked by 10% and has surpassed the level of 16.

There are multiple catalysts which have helped the market to open in green. To begin with, Finance Minister Nirmala Sitharaman has denied claims that the Income Tax (IT) Department plans to alter the capital gains if the government is re-elected in the ongoing 2024 Lok Sabha elections. The second is the positive handover from the US markets as it rallied on Friday.

US Markets - Friday witnessed a surge in US equities, primarily driven by the technology sector, following a disappointing jobs report for April. Additionally, bullish sentiment was reinforced by Powell's dovish comments. The economic calendar for the upcoming week is relatively light, while the earnings season intensifies. Notable results expected include those from Berkshire Hathaway, Palantir, and Arm.

In the Asian market, China’s Shanghai Composite Index is trading higher by 1.05% on the back of the highest reading for composite PMI since May 2023.

Top gainers and losers

Within the Nifty 50 space, Britannia (+4.33%), Kotak Bank (+3.72%) and JSW Steel (+1.35%) are among the top gainers, while Titan (-3.62%), SBI (-2.37%) and Shriram Finance (-1.72%) are among the top losers.

Broader Indices trades lower

In the broader markets Nifty Midcap 100 showed marginal losses of 0.04% to trade around the 50,900 level. Nifty Smallcap 100 also traded lower by 0.21% and is moving around 16,800 level. Market breadth remains slightly positive as 1,008 stocks advance, while 920 stocks decline.

Sectoral Performance - Nifty Realty, IT and FMCG were among the top gainers, while Nifty PSU Bank, Media and Metal were among the top losers.

Commodities - Oil prices surged in early trading following Israel's closure of the Kerem Shalom humanitarian crossing into Gaza on Sunday, in response to a rocket barrage from Hamas. This development poses a threat to ongoing hostage and cease-fire negotiations. Additionally, Saudi Arabia raised the price of crude sold to Asia to tighten the oil market.

Stocks in F&O Ban - Stocks that are banned for trading in the F&O segment on May 06, 2024, are Aditya Birla Fashion and Retail, Balrampur Chini Mills, Biocon, Gmr Infra and Vodafone Idea.