Sensex and Nifty 50 Trim Gains as Profit Booking and Global Uncertainty Weigh on Market Sentiment
The Indian stock market closed Friday, May 2, on a cautious note as key benchmark indices—the Sensex and the Nifty 50—erased most of their intraday gains due to widespread profit-booking and persistent global uncertainties. After a strong start, the Sensex surged as much as 936 points during the session to touch an intraday high of 81,177.93. However, the rally lost steam in the latter half of the trading day, and the index ended with a modest gain of just 260 points or 0.32 per cent at 80,501.99. The Nifty 50 also followed a similar trajectory. It briefly reclaimed the 24,589.15 mark, rising 255 points or about 1 per cent, before settling nearly flat with a marginal gain of 13 points or 0.05 per cent at 24,346.70.
The broader market too failed to hold on to early momentum. The BSE Midcap index, which had shown promise in the morning session with gains of up to 1 per cent, closed the day down 0.41 per cent. Similarly, the BSE Smallcap index reversed its gains to finish with a slight decline of 0.07 per cent. The day’s volatile performance was largely attributed to ongoing geopolitical concerns between India and Pakistan, lack of fresh domestic or global triggers, and looming fears over a potential recession in the United States. Market sentiment remained fragile as investors exercised caution in light of persistent uncertainty in global trade dynamics, including fears around tariff deals and crude oil price volatility.
According to Amit Jain, co-founder of Ashika Global Family Office Services, the market is struggling to sustain any upward movement due to immediate profit-booking tendencies. “Every uptick is met with selling pressure, driven by the global uncertainty. While India’s domestic fundamentals remain robust, some sectors—especially mid- and small-cap stocks—have witnessed valuations running ahead of earnings, making them vulnerable to corrections,” Jain noted. He added that the prevailing “sell on rally” sentiment shows traders’ unwillingness to take on significant risk amidst volatile conditions. This risk-averse behavior was visible throughout the session as investors chose to lock in profits rather than carry positions over the weekend amid heightened geopolitical noise.
Even as India’s economy remains fundamentally strong, the stock market appears to be in a consolidation phase, awaiting clearer signals both globally and domestically. Factors such as the direction of U.S. interest rates, global commodity trends, and political developments in the region continue to weigh heavily on investor mood. For now, the lack of any strong positive trigger combined with elevated valuations is keeping bullish momentum in check. As traders and investors assess the evolving macroeconomic landscape, the focus is likely to remain on earnings, central bank commentary, and geopolitical developments.
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