Benchmark indices Sensex and Nifty opened on a firm note on May 5, as broad-based buying was witnessed across various sectors in early trade. The momentum extended to the broader market as well, with both midcap and smallcap indices trading in positive territory, indicating mild underlying strength.
Around morning, the Sensex was up by 311.11 points or 0.39 percent, standing at 80,813.10, while the Nifty advanced 83.65 points or 0.34 percent, reaching 24,430.35. Market breadth leaned positive, with 1,528 shares advancing, 924 shares declining, and 201 remaining unchanged on the exchange.
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At the sectoral level, indices such as Nifty Auto, Nifty FMCG, and Nifty IT posted gains ranging from 0.4 percent to nearly 1 percent. In contrast, sectors including Nifty Metal, Nifty PSU Bank, and Nifty Private Bank slipped into the red during the session.
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, foreign institutional investors (FIIs) have continued their shift in strategy from net sellers to net buyers for the week ending May 2. He emphasized that this pivot is likely to lend continued resilience to the market. Additionally, the steep decline in the Dollar Index—from 111 on January 11 to 99 recently—has acted as a significant tailwind for Indian equities.
"The current outperformance of large-cap stocks relative to the broader market is a constructive development. This trend has the potential to persist," Vijayakumar noted.
Meanwhile, Hardik Matalia, Derivative Analyst at Choice Broking, offered a technical perspective. He highlighted that 24,500 serves as a key resistance level for the Nifty. On the downside, immediate support is seen at 24,300, with a stronger base forming in the 24,200–24,000 range.
"Traders may consider buying on dips, provided the Nifty remains above the 23,800 mark. However, given the prevailing global uncertainties, it is advisable to avoid large overnight positions and maintain tight risk controls," Matalia advised.
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