Sensex and Nifty are likely to open higher on May 6 as GIFT Nifty surges 184 points; easing crude oil and strong global cues support sentiment despite continued FII selling.
Indian equity markets are likely to open in the green on Wednesday, May 6, tracking positive global cues and a sharp rise in the GIFT Nifty futures. The benchmark indices are expected to open on a positive note with the GIFT Nifty trading higher by 184 points at 24,290.
The move comes on the back of a weak close in the previous session when the Sensex tumbled 252 points to 77,017. Geopolitical tensions hit the banks and heavyweights, with the Nifty 50 index ending 86 points, or 0.36%, lower at 24,033.
Geopolitical developments have pushed crude oil prices lower, and market sentiment has turned positive.
President Donald Trump’s decision to scrap “Project Freedom” in the Strait of Hormuz had created an opportunity for a diplomatic breakthrough with Iran.
Brent crude fell to around $107 a barrel from recent highs of around $110 after hitting a session high of $114.44 a barrel in the previous session. Lower oil prices are a boon for India, as it is a country where the worry of inflation has been a concern.
Asian stocks opened higher in early trade, riding on the positive tone in global sentiment:
Shanghai Composite up 1.11%
Hang Seng up 0.66%
The Kospi jumped 6%.
Japanese markets were closed for a public holiday.
US markets closed strongly overnight on falling crude prices and better-than-expected corporate earnings.
Dow Jones: +0.73%
S&P 500: +0.81 %; Nasdaq: +1.03 %
The strong run of US equities might power Indian IT and tech stocks.
Foreign institutional investors remained net sellers as they offloaded shares worth Rs 3,621.58 crore in the previous session. However, the market got support from domestic institutional investors who bought stocks worth ₹ 2,602.62 crore.
Global positioning has been cautious, with FIIs being net sellers to the tune of Rs 1.97 lakh crore in 2026 so far.
Larsen and Toubro (L&T)
The infra major posted a net profit of ₹5,326 crore in the fourth quarter, down 3% year-on-year. The fall was due to a one-time charge of ₹1,155 crore on employee benefits.
Hero MotoCorp
The two-wheeler giant posted a stellar performance with net profit soaring 26% to ₹1,473.92 crore and revenue surging to ₹12,978.28 crore, driven by strong sales volumes.
UB Group
Profit after tax rose 4.2% to Rs 101.87 crore. Revenue dipped slightly to Rs 4,408.41 crore.
Shopper’s Stop Ltd
The retailer reported a net loss of Rs 16.35 crore against a profit last year. Revenue grew by 13.7 per cent to Rs 1,209.79 crore.
The rupee was flat at 95.18 to the dollar, and the euro was higher.
In commodities:
Gold futures rise 1.67% to $4,644.60
Silver jumped 2.41% to $75.36
Crude oil fell 1.64% to $100.59
Copper: $6.06 (+1.18%)
Precious metals continue to rally on safe-haven buying while softer crude oil boosts market sentiment.
Markets likely to open strong on positive global cues; crude down. However, FII selling may continue to be persistent, and earnings announcements ahead may keep volatility high.
Traders will continue to be stock-specific with a focus on key sectors such as IT, banking and consumption stocks.
Sustenance in global cues and whether domestic institutions continue to cushion foreign outflows will also determine intraday direction.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The experts give their recommendations, suggestions, views, and opinions. Please consult a financial advisor before making any investment decisions.)
Bukayo Saka strikes as Arsenal defeat Atletico Madrid 2-1 on aggregate to reach their first…
Punjab High Alert: Twin blasts in Punjab’s Jalandhar and Amritsar within hours have put security…
Stock Market Outlook (May 6): GIFT Nifty Signals Weak Start — Will Dalal Street Extend Losses Today?
Sensex and Nifty ended lower in the previous session, dragged by banking and heavyweight stocks.…
