Modest gains in Sensex, Nifty but market breadth hits highest level since April 21

In April, the advance-decline ratio for all BSE listed stocks averaged 1.26 -- the highest level since April 2023, signalling a broad-based recovery across segments.

On May 5, the advance-decline ratio on the BSE was pegged at 1.8 -- the highest since April 21. As many as 2988 stocks advanced on BSE, as against 1,640 declines.

The advance-decline ratio -- the ratio of stocks that gained versus those that declined -- is often looked upon as an important metric to gauge investor sentiments and is also referred to as market breadth.

A ratio of more than 1 indicates that more stocks gained around during the trading sessions when compared to the number of stocks that lost ground.

Also read: Taking Stock | Foreign buying, oil cooloff take Nifty to highest closing of 2025 at over 24,450

In April, the advance-decline ratio for all BSE listed stocks averaged 1.26 -- the highest level since April 2023, signalling a broad-based recovery across segments.

It also marked the second consecutive month of a ratio above one, a significant rebound from the sub-one levels seen between December 2024 and February 2025, with February recording the lowest reading in five years.

At the close on May 5, the Sensex settled at 80797, gaining around 0.4 percent or 295 points, while the Nifty 50 climbed 0.47 percent or 114.45 points to close at 24461.

Benchmark indices have now gained for 12 out of last 16 sessions which came after a prolonged correction that began in late September 2024.

During the session, stocks such as Godfrey Philips, Reliance Naval & Engineering, Rajvir Industries, Synergy Green Industries and Navin Fluorine reached their 52-week high. The most active stocks on the Sensex today included Adani Enterprises, M&M, Reliance, SBI and Tata Motors amongst others.

Speaking about the improved market conditions, independent research analyst Deepak Jasani, recently told Moneycontrol that the recent rally suggests that small- and mid-cap stocks have reached valuations attractive enough to re-engage investors. Similarly, renewed foreign buying has also helped bout market sentiment.