The National Stock Exchange of India (NSE) and BSE will remain closed on May 3 for Ramzan Eid.
Wholesale commodity markets, including metal and bullion, will also remain shut. There will be no trading activity in forex and commodity futures markets either.
On May 2, the Sensex closed at 56,975.99, down 84.88 points, or 0.15 percent and the Nifty shed 33.40 points, or 0.2 percent, to end at 17,069.10.
“Global as well as Indian markets witnessed some jittery as investors panicked ahead of rate hike by central banks globally. The US Fed is expected to aggressively hike rates in its upcoming meeting. Further, China’s factory activity data signalled a steeper contraction in activity due to widespread COVID-19 lockdowns also dampened risk appetite,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
“Despite this uncertainty in the market, Nifty held on to its key psychological level of 17,000 mark. Volatility is likely to continue as investors keenly wait for outcome of policy meetings due later this week where US Federal Reserve and the Bank of England are expected to hike interest rates.”
“Apart from this on-going earnings season would keep investors busy. The mega IPO of LIC would also open on 4th May 2022 which is expected to attract lot many retail investors to the equity market but could suck out some liquidity from the market,” Khemka added.
Apollo Hospitals, Eicher Motors, Titan Company, Bajaj Auto and Wipro were among the top Nifty losers, while gainers were IndusInd Bank, Coal India, Tata Steel, Power Grid Corporation and HDFC.
On the BSE, capital goods, auto and IT indices fell a percent each, however, some buying was seen in the FMCG, metal, power and realty names.
Broader indices underperformed the benchmarks, with the BSE midcap index falling 0.47 percent and the smallcap index shedding 0.87 percent.
Also Read – HDFC Q4 net profit surges 16.4% YoY to Rs 3,700 crore, beats estimate
“Markets traded lackluster and ended marginally lower amid mixed cues. Initially, weak global cues triggered a gap-down start however better than expected results from the HDFC coupled with recovery in the global indices trimmed losses as the day progressed. Consequently, the Nifty index ended at 17,069.10 levels; down by 0.2%,” said Ajit Mishra, VP – Research, Religare Broking.
“Markets managed to rebound amid the weak global setup which shows that bulls are not in the mood to surrender easily. However, the real test would be to handle the volatility post the US Fed meeting.”
“Meanwhile, the domestic factors like earnings and macroeconomic data would further add to the choppiness. It’s prudent to limit positions and continue with stock-specific trading approach,” he added.
Also Read – LIC IPO opens on Wednesday, 4 May: Should you subscribe?
Indian rupee ended marginally lower at 76.51 per dollar on Monday versus Friday’s close of 76.43.
“USDINR spot closed 9 paise higher at 76.52, in a day of lackluster trading. With a truncated week, traders are staying away from taking large bets ahead of US FOMC meeting on Wednesday,” said Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities.
“Our bias continues to be a range, between 76 and 77. Strong US Dollar Index and fragile equity markets are USD supportive, whereas RBI intervention and LIC related flows are Rupee positive. Therefore, it can be rangebound,” Banerjee added.
Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes