Adani Ports, Maruti, RailTel lead the rally; IT and Auto shine, while Eternal slips after weak earnings
Per the Indian stock market call this year, a big up-move is on its way on the back of good corporate earnings, engaging foreign investors again, and overall market cheer. The benchmark indices are up and trading in the green due to a wide area of buying moving across sectors.
Market Snapshot
BSE Sensex trades at 80,742.50, up by 900 points or 1.13%.
NSE Nifty 50 moves higher by 200 points, trading at 24,551.00, up 0.82%.
Mid and small-cap stocks also contribute positively, with the BSE Midcap Index up by 0.5% and the Smallcap Index rising by 0.8%.
Sectoral Performance
It appears that stocks in the Information Technology (IT) sector retain the bullish attributes seen during previous trading sessions. The Nifty IT Index is now more than 1% in the green. Coforge leads with a profit of 1.93%, followed by Persistent Systems with a profit of 1.81%, and MphasiS with a gain of 1.52%. Positive Q4 earnings and favorable currency movement are conducive for the IT sector.
The Banking and Financial Services stocks are major contributors to the rally witnessed today. The larger banks, including ICICI Bank, HDFC Bank, and Kotak Mahindra Bank, traded in the green on better credit growth and net interest margin guidance. The investor sentiment remains strong because of expectations about interest rate stability and steady asset quality.
The automobile stocks are generally seen with a positive bias. The Nifty Auto Index advanced nearly 0.9% as strong April sales numbers emerged. Companies such as Maruti Suzuki and TVS Motor recorded very strong monthly performances, helping their individual stocks surge.
Consumer Durables are an exception, as they remain the only major laggards. The BSE Consumer Durables Index fell by over 1% due to profit-booking by players like Blue Star, Voltas, and Whirlpool India. Seasonal factors coupled with the slowdown of demand in the northern region have weighed heavily on this sector’s sentiment.
Top Gainers (Nifty 50)
Adani Ports jumps by over 5% following a strong set of Q4 earnings. The company posts a 47.8% year-on-year increase in consolidated net profit, which supports its stock’s sharp upward movement. Improved cargo volumes and operational efficiencies drive revenue growth and margin expansion.
Maruti Suzuki trades higher by 3.1% after reporting a 7% increase in total sales for April 2025. Strong demand for compact and mid-sized vehicles, along with favorable export figures, supports its rally.
PNB Housing Finance surges by 7.4% after reports emerge about Carlyle Group offloading its remaining 10.44% stake through a block deal. The deal indicates confidence in the company’s post-transaction independence and long-term prospects.
Top Losers
Eternal Ltd (formerly Zomato) drops nearly 2% after the company reports a 78% year-on-year drop in Q4 net profit to ₹39 crores. While revenue grows by 64%, margins remain under pressure due to rising delivery costs and expansion into tier-2 markets.
Blue Star sees a decline of 1.83%, with market participants engaging in profit-booking. Despite a solid performance in previous sessions, the lack of forward guidance from management creates temporary uncertainty.
Corporate Earnings Highlights
The company’s earnings before taxes have recorded an impressive eight-fold increase over the first quarter of this financial year, with a net profit of ₹3,844.9 crores at the end of FY22. Most of the gains are due to an exceptional item of ₹3,945.7 crores, from which profit is made by selling its stake in Wilmar. This one-time gain puts the icing on the investor sentiment cake and races the stock price skyward across broader indices.
Followed by RailTel Corporation, 7.94% and two-day gains increase after it declared a 46.3% Y-o-Y increase in Q4 profit to ₹113.4 crores. Solid order inflows and operational expansion play a big role in this pleasant earnings surprise.
Currency and Global Markets
The Indian Rupee is up sharply now above ₹84 per U.S. dollar, marking its best single-day gain in almost two and a half years. This sharp appreciation is attributed to strong foreign equity inflows and a broader softening in the U.S. dollar index. Hence, strengthening the currency should hold up import-heavy sectors such as oil and aviation.
Global equity markets are seeing firm trade into the positive. Both Asian and European indices have followed suit. Easing inflation in the U.S. along with dovish central banks in Asia, has set the conditions better for a risk-on posture towards emerging markets, India included.
Foreign Institutional Investor Activity
FIIs have maintained their positive stand with Indian markets. The first trading day of May witnessed net equity inflows sailing over ₹3,500 crores in the banking, auto, and infrastructure sectors. Mass tower Institutional Investors (DIIs) are net buyers and aid in sustaining the rally through mid-session.
Economic Indicators
India’s manufacturing PMI for April stands at 58.7, indicating robust expansion and strong demand recovery. Employment generation improves across the sector, which bolsters investor confidence in domestic growth resilience.
Bond yields remain stable, with the 10-year G-sec yield hovering around 7.08%, as markets factor in no immediate rate hike expectations by the Reserve Bank of India (RBI). Lower yields support equity valuations and aid capital-intensive sectors like real estate and infrastructure.
Market Outlook
Indian equity markets are likely to sustain their positive momentum in the near term, driven by strong Q4 earnings, supportive global cues, and healthy macroeconomic indicators. Stock-specific action remains prominent as companies continue to release quarterly results.
However, market participants monitor key risks such as crude oil volatility, geopolitical developments in Europe and Asia, and upcoming U.S. non-farm payroll data. Any deviation from expectations may trigger short-term volatility.
Investor sentiment remains upbeat, with frontline indices nearing all-time highs. Rotational buying in sectors like IT, banking, and auto suggests continued optimism in India’s growth story for FY26.
