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NSE Intra-day chart (03 May 2021)
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Market Commentary 04 May 2021
Benchmarks to get flat-to-negative start amid mixed global cues


Buying which emerged in last leg of trade mainly helped Indian equity benchmarks to end flat on Monday. Markets started the day with a gap-down opening as NDA's sub-par performance in West Bengal assembly election and possibility of emergence of strong opposition from alliance of regional parties to fight against NDA weighed on investors sentiments. Traders also remained cautious on account of persistent rise in the second wave of Covid-19 cases, increasing death cases and extended partial lockdown. Some cautiousness came in as snapping their six-month buying spree, foreign investors turned net sellers in April and pulled out Rs 9,659 crore from Indian equities, spooked by the intense second wave of coronavirus and its fallout on the economy. Market participants got worried, after India's manufacturing sector activity was largely flat in April, as rates of growth for new orders and output eased to eight-month lows amid the intensification of the COVID-19 crisis. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) was at 55.5 in April, little changed from March's reading of 55.4. However, key gauges started paring losses as traders took some support with report that in view of the challenges faced by taxpayers in meeting the statutory and regulatory compliances under Goods & Services Tax (GST) law due to the outbreak of the second wave of COVID-19 pandemic, the Government has unveiled various relief measures for taxpayers. Some support also came in as the goods and services tax (GST) collections touched a record high at Rs 1.41 trillion in April, surpassing the Rs 1 trillion mark for the seventh straight month in a row during 2020-21. Meanwhile, the commerce ministry's preliminary data showed that India's exports in April jumped nearly three-folds to $30.21 billion from $10.17 billion in the same month last year. But, buying in final hour of trade mainly helped key bourses to wipe-out all of their losses to end flat, as market participants took some relief with the data released by the commerce and industry ministry showing that the growth of India's eight key infrastructure segments reached a 32-month high of 6.8 per cent in March compared to a year earlier, mainly due to a low base. Finally, the BSE Sensex fell 63.84 points or 1.13% to 48,718.52, while the CNX Nifty was down up 3.05 points or 0.02% to 14,634.15.


The US markets ended mostly higher on Monday as shares tied to the economic reopening rallied on relaxed pandemic restrictions. Bets on the economic reopening led the market advance, especially retailers. Royal Caribbean and American Airlines rose more than 1% each. Gap rallied more than 7%. Dillard's rose nearly 10%, while Macy jumped 8%. Urban Outfitters and Kohl's both gained more than 5%. The rally in these stocks came after New York Governor Andrew Cuomo announced that most capacity restrictions will be lifted across New York, New Jersey and Connecticut, while 24-hour subway service will resume in New York City later this month. On the economic data front, with a jump in spending on residential construction partly offset by decreases in spending on non-residential construction and public construction, the Commerce Department released a report showing US construction spending rose by much less than expected in the month of March. The report said construction spending inched up by 0.2 percent to an annual rate of $1.513 trillion in March after falling by 0.6 percent to a revised rate of $1.510 trillion in February. Street had expected construction spending to spike by 2.0 percent compared to the 0.8 percent drop originally reported for the previous month. Meanwhile, growth in US manufacturing activity unexpectedly slowed in the month of April, according to a report released by the Institute for Supply Management (ISM). The ISM said its manufacturing PMI slid to 60.7 in April after jumping to a more than 37-year high of 64.7 in March. While a reading above 50 still indicates growth in manufacturing activity, street had expected the index to inch up to 65.0.


Crude oil futures ended higher on Monday buoyed by signs of a brighter global demand outlook, even as India, the world's third-largest oil consumer, continues to suffer from record daily COVID-19 cases. A weak dollar also contributed to oil's advance. The dollar index dropped to 90.87, giving up nearly 0.5%. Meanwhile, a private report said that Ihsan Abdul Jabbar, Iraqss oil minister, said that the Organization of the Petroleum Exporting Countries and their allies, together known as OPEC+ will continue to trying to keep crude prices within normal averages and there is no concern about a drop in prices. Crude oil futures for June rose $0.91 or 1.4 percent to settle at $64.49 barrel on the New York Mercantile Exchange. July Brent crude gained $0.80 or 1.20 percent to settle at $67.56 a barrel on London's Intercontinental Exchange.


Indian Rupee ended stronger against dollar on Monday due to fresh selling of the American currency by banks and exporters. Sentiments were upbeat as India's merchandise exports in April 2021 stood at $30.21 billion, an increase of 197.03% over $10.17 billion in April 2020 and an increase of 16.03% over $26.04 billion in April 2019. Adding more optimism, with uptick in production of natural gas, steel, cement and electricity, the output of eight core sectors grew by 6.8% in March 2021. The growth rate of the eight infrastructure sectors had stood at (-) 8.6% in March 2020. On the global front, dollar levelled out after its recent bounce on Monday as investors made a cautious start to a week crammed with central bank meetings and big-ticket US economic data, waiting for clues on the global inflation outlook and policymakers' responses. Finally, the rupee ended 73.95, stronger by 14 paise from its previous close of 74.09 on Friday.


The FIIs as per Monday's data were net seller in both equity and debt segment. In equity segment, the gross buying was of Rs 8511.45 crore against gross selling of Rs 11662.35 crore, while in the debt segment, the gross purchase was of Rs 664.63 crore with gross sales of Rs 1569.69 crore. Besides, in the hybrid segment, the gross buying was of Rs 44.55 crore against gross selling of Rs 35.23 crore.


The US markets ended mostly higher on Monday amid a largely upbeat earnings season, while the Nasdaq came under pressure from declines in some high-flying growth stocks, as the rotation into cyclical and economy reopening stocks continued. Asian markets are trading mixed on Tuesday tracking mixed cues from Wall Street. Trading will be limited with Japan and China among markets closed for holidays. Indian markets recovered to settle on a flat note with financials relatively underperforming on Monday. Today, the markets are likely to make flat-to-negative start tracking mixed cues from global peers. Updates on Covid-19 and the vaccination drive will continue to be the main triggers for the Indian markets. Traders will be concerned with the data compiled by the Centre for Monitoring Indian Economy (CMIE) showing that the second wave of the coronavirus pandemic and the resultant curbs have pushed India's unemployment rate to a four-month high of 7.97%. The spike in the unemployment rate was seen both in urban and rural areas. There will be some cautiousness as domestic agency India Ratings and Research expects the overall recovery path to be pushed back for most of the service-oriented sectors to FY22, owing to a major supply-side disruption from the second wave of COVID-19 infections. Besides, blaming the slow pace of vaccinations and uncertainty around the number of those infected and dead in the second COVID-19 wave, a private report cut India's FY22 GDP growth estimate to 10 per cent from earlier 11 per cent. It added that if the ongoing localised lockdowns continue till June, it will lead to economic losses of $38.4 billion. However, some respite may come later in the day with report that India, for the third day in a row, reported a decline in fresh cases, but still logged 355,828 fresh cases, on Monday. With this, the cumulative caseload stands at 20.2 million, Worldometer showed. Some support may also come as Industry body CII urged the government to take strongest national steps including curtailing economic activity to contain the spike in COVID-19 cases in the country. CII President Uday Kotak has asked for highest-level response measures to address the rising wave of COVID-19 cases, as currently safeguarding lives is key to cut the transmission links. Banking stocks will be on focus as the Reserve Bank has decided to review and strengthen the Risk-Based Supervision (RBS) of the banking sector with a view to enabling financial sector players to address the emerging challenges. There will be some important earnings announcements too to keep the markets buzzing.


Support and Resistance: NSE (Nifty) and BSE (Sensex)



Previous close



NSE Nifty




BSE Sensex





Nifty Top volumes





Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

State Bank of India





Tata Motors





Oil & Natural Gas Corporation





Tata Steel





Adani Ports and SEZ






  • Reliance Industries has now become the country's largest producer of medical grade liquid oxygen from a single location. 
  • Kotak Mahindra Bank has reported 35.91% rise in its consolidated net profit at Rs 2589.32 crore for Q4FY21 as compared to Rs 1905.18 crore for Q4FY21. 
  • APSEZ has handled cargo volume of 24.46 MMT in the month of April, 2021 thus registering a growth of 86% on Year on Year basis. 
  • Bajaj Auto has reported 10-fold jump in total sales to 388,016 units in April 2021 as against 37,878 in the same month last year.
News Analysis