The Indian stock markets witnessed a positive start to the week on Monday, May 2nd, with both the benchmark indices, Nifty and Sensex, trading higher in the morning session. At 10:30 am, the Nifty was up by 70 points or 0.47% at 14,903 levels, while the Sensex was trading 200 points or 0.41% higher at 49,305 levels.
The rally in the markets was led by gains in stocks of IT major Tech Mahindra and steel company Tata Steel, which were the top gainers on the Nifty 50 index. Tech Mahindra was up by 3.5% after reporting better-than-expected results for the March quarter. The company’s revenue rose 1.5% quarter-on-quarter to Rs 9,729 crore, while its net profit surged 28% to Rs 1,081 crore.
Tata Steel, on the other hand, gained 2.6% after posting a strong operational performance for the fourth quarter. The company’s consolidated EBITDA increased by 50% YoY to Rs 13,157 crore, driven by higher volumes and prices.
The positive sentiment in the markets was also supported by global cues, as the US Federal Reserve maintained its accommodative policy stance and pledged to keep interest rates low until the economy reaches full employment and inflation stays above its 2% target. The Dow Jones Industrial Average closed at a record high on Friday, and Asian markets were also trading higher on Monday.
Moreover, the ongoing earnings season in India has also been a key driver of the markets, with several companies posting better-than-expected results. The overall earnings growth for the Nifty 50 companies in Q4FY21 is expected to be around 26%, driven by sectors such as metals, IT, and private banks.In conclusion, the Indian stock markets are witnessing a strong start to the week, supported by strong earnings and positive global cues.
The outlook for the markets remains optimistic, with investors betting on the economic recovery and the ongoing vaccination drive in the country. However, investors should also keep a close watch on the evolving Covid-19 situation and any potential impact it may have on the markets.
