Sensex-Nifty rally at opening bell, riding high on global market surge

Mumbai (Maharashtra) [India], May 7 : The stock market commenced trading on a positive note today, as both the Sensex and Nifty indices saw gains, aligning with global market trends. Sensex opened 74.96 points up at 73970.50, while Nifty 50 opened 35.70 points higher at 22478.40.
Among the Nifty companies, 29 were advancing while 21 were declining. Hindustan Unilever, Britannia, BPCL, ITC, and Coal India led the gains, while Bajaj-Auto, Power Grid, Cipla, Divi's Lab, and JSW Steel were the top decliners.
Market expert Ajay Bagga attributed the positive opening to the strong corporate earnings in the US and enhanced rate cut expectations following a subdued April Jobs Report.
He noted that Asian markets also opened positively, setting the stage for a mildly positive start in India. However, Bagga highlighted the trend of afternoon FII selling, which has been limiting significant upward movements in the Indian markets.
Bagga said, "US markets finished the session at the days high on the back of continued strong corporate earnings and enhanced rate cut expectations following last weeks subdued April Jobs Report. Asian markets opened positive in a continuation trade. Indian futures are indicating a mildly positive start. However the last few days trend has been a mildly positive opening in India based on good global cues followed by FII selling in the afternoon."
He added, "FII selling is sustaining for now and is not allowing Indian markets to cross significant levels on the upside. For now expect range bound price action , with stocks moving on their earnings announcements."
Currently, Nifty is positioned around the support levels of 22,400 - 22,300, with a short-term negative trend. Analysts suggest the possibility of an upside bounce as long as the support at 22,300 holds, but a breach of this level could lead to further weakness in the short term.
Analyzing the Nifty Open Interest (OI) Data, the highest OI on the call side was observed at 22,500 and 22,700 strike prices, while on the put side, the highest OI was at 22,500 strike price.
Meanwhile, Asian stocks saw marginal gains, with Japan's Nikkei 225 surging up to 1.6% and Australian equities also showing positive movements.
The yen depreciated after Japan's top currency official, Masato Kanda, suggested no immediate need for government intervention in the market.
Optimism surrounding China's supportive policies and expectations for a continuation of economic policies in India under Prime Minister Narendra Modi's potential third term contributed to the positive sentiment in global equity markets.
Varun Aggarwal, founder and managing director, Profit Idea, said, "Optimism surrounding China's supportive policies and expectations for a continuation of economic policies in India under Prime Minister Narendra Modi's potential third term are contributing to the positive sentiment in global equity markets. Oil prices rose, while US stock futures remained steady amidst developments in the Israel-Gaza conflict."
Oil prices rose, while US stock futures remained steady amidst developments in the Israel-Gaza conflict.
In the US, investors analyzed remarks from various Fed officials regarding interest rate trajectories, while Australia's central bank is expected to maintain its key interest rate with a reinstated hawkish bias.
Overall, the backdrop for stocks remains favorable, driven by healthy profit growth, potential Fed rate cuts, and increased investment in artificial intelligence.