Sensex and Nifty 50 opened higher on May 6, tracking positive cues from global markets, after a softer-than-expected jobs report boosted hopes that the US Federal Reserve could start cutting interest rates soon. At 09.18 am the Sensex was up 206 points or 0.3 percent at 74,084.28, and the Nifty 50 was up 51 points at 22,527.50.
The US nonfarm payrolls report, released on May 3, showed 175,000 jobs gained in April, below the 240,000 jobs expected by economists surveyed by Dow Jones. Following the news, the three benchmark US indices closed over 1 percent higher each on May 4 and Asian indices inched higher at open on May 6.
Japan and South Korea’s markets were closed on May 6 for a public holiday.
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"The market sentiment remains optimistic, supported by hopes of political continuity amid ongoing general elections. However, concerns loom over inconsistent Q4 corporate earnings. Volatility is expected post-market open, with a focus on key earnings reports," Prashanth Tapse, Senior VP (Research) at Mehta Equities said in a note.
Britannia Industries and Kotak Mahindra Bank were the top gainers on Nifty 50 on May 6. Britannia Industries shares surged over 4 percent in early trade despite the FMCG major's net profit falling more than expected.
Kotak Mahindra Bank's shares rose nearly 4 percent as brokerages turned bullish on the stock after it reported an upbeat Q4 FY24 performance.
Meanwhile, Titan and SBI were the biggest laggards on Nifty 50. Titan fell nearly 5 percent after brokerages slashed their target price on the late Rakesh Jhunjhunwala-backed company after the jewellery major's fourth quarterly show came in under expectations.
Also Read | JP Morgan upgrades Kotak Mahindra Bank to overweight from neutral; ups target price by 34%
"For now, the immediate swing low of the 22350-22300 subzone is likely to provide a firm cushion for any intra-week blip, followed by the 50 DEMA of 22230 and the bullish gap around the 22200 zone," said Sameet Chavan, Head Research, Technical and Derivative - Angel One.
Investors await PMI readings for mainland China and India due to be released on May 6. They also await the Reserve Bank of Australia’s rate decision due on May 7 and China’s April trade data due on May 9.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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