New Delhi [India], May 5 : Indian stock indices extended their gains from the previous week, starting the fresh week on a positive note.
Sensex closed at 80,796.84 points, up 294.85 points or 0.37 per cent, Nifty closed at 24,461.15 points, up 114.45 points or 0.47 per cent. Most of the sectoral indices were in the green, with Nifty auto and oil and gas rising the most on Monday.
As the week progresses, Indian stock markets will closely monitor the movement of foreign portfolio investments (FPI), which have recently turned net buyers, along with developments on the India-US bilateral trade deal front, and the Q4 earnings of key listed companies for fresh cues.
Globally, the outcome of the US Central Bank monetary policy meeting would also be closely watched.
Last week, the Sensex and Nifty indices registered their longest weekly winning streak of 2025. Cumulatively, Sensex soared over 1,100 points or 1.5 per cent in the holiday-truncated week. The stock exchanges were closed on May 1 for Maharashtra Day.
Another positive factor was that foreign portfolio investors turned net buyers in Indian markets after three months, though the pace of buying is still picking up.
"The market has sustained its positive momentum, though the level of optimism has decreased. Continued foreign inflows and record GST collections in April indicate resilience in economic activity, fostering mild hopefulness," said Vinod Nair, Head of Research, Geojit Investments Limited.
"A weak dollar and a decline in oil prices have further bolstered FII sentiment. However, the market's momentum is moderating, with action shifting from broad-based movements to stock and sector-specific trends based on results. Over the past month, the broad market has recouped more than 50 per cent of the losses incurred during the consolidation period from September 2024 to March 2025," Nair added.
Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity, said gains were capped as investor sentiment turned cautious amid escalating geopolitical tensions between India and Pakistan, prompting a defensive stance despite support from select sectors.
Indian stock indices had seen upward movement since Trump's decision to pause the reciprocal tariffs on dozens of countries, including India, for 90 days. The tariffs had initially set off a sell-off in equities globally, and India was no exception.
Geopolitical tensions, including the tension between India and Pakistan following terrorist attack in Pahalgam on April 22, had weighed on investor sentiment to an extent recently. The investors will keep an eye on the developments.
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