Benchmark indices opened higher on May 4 as counting for assembly elections in West Bengal, Tamil Nadu, Assam, Kerala, and Puducherry began at 8:00 AM.
As of 9:50 AM, the BSE Sensex jumped nearly 1,000 points, or 1.30 per cent, to hit an intraday high of 77,910. In tandem, the NSE Nifty 50 climbed 293 points, or 1.21 per cent, to touch 24,290 in early trade, signalling a strong start to the session.
Broader markets mirrored the benchmarks, as Nifty Smallcap 100 and Nifty Midcap 100 traded up nearly 1 per cent. Nifty 500, which represents nearly 92 per cent of the total free-float market capitalisation of all NSE-listed stocks, was also up by 0.85 per cent. Nifty Microcap 250, which tracks the performance of the top 250 stocks beyond Nifty 500 constituents saw the strongest surge, rising over 1.50 per cent.
Among the Nifty 50 constituents, Hindustan Unilever surged the highest, rising over 4.50 per cent, followed by Bajaj Auto, Maruti Suzuki, and Adani Ports, which rose over 3 per cent each. Shriram Finance, Larsen & Toubro, and Bajaj Finance also gained over 2 per cent. On the other hand, Kotak Mahindra Bank, ONGC, Bharti Airtel, Dr Reddy's Laboratories, and Tata Consultancy Services (TCS) were the top laggards, weighing on the index.
Gains in financial heavyweights like HDFC Bank and ICICI Bank helped lift the benchmarks, while Reliance Industries also rose by about 1 per cent.
Barring IT and media, all other sectoral indices were in green. Nifty Realty led the charge, gaining about 3 per cent, followed by Nifty FMCG, Nifty Metal, Nifty Auto, and Nifty Pharma, gaining between 1 per cent and 1.50 per cent.
VK Vijayakumar, chief investment strategist at Geojit Investments, said the market’s reaction to the state election results, particularly in West Bengal, is likely to be "short-lived" and driven more by sentiment than fundamentals.
He noted that the broader market trend will depend on global factors such as crude oil prices, which are being influenced by developments in West Asia.
US President Donald Trump said the US military will begin helping stranded ships move out of the Strait of Hormuz from "Monday morning, Middle East time."
Around 20,000 seafarers and nearly 2,000 ships have been stuck in the region since the US-Iran conflict began, according to the International Maritime Organisation.
Trump's statement has eased concerns, cooling crude oil prices further.
Crude oil prices eased in the previous session after Iran submitted a fresh proposal for negotiations with the US, raising hopes of renewed diplomatic efforts to end the ongoing conflict. As of time of writing, Brent crude oil futures traded at $108.69 per barrel, while the West Texas Intermediate (WTI) crude oil futures quoted at $101.45 a barrel.
Earlier on April 30, Brent crude had touched a four year high of $126.41 per barrel, but has since eased around 14.50 per cent.
Vijayakumar added that foreign institutional investor (FII) activity will also be a key factor for the market. He noted that global investors are still favouring AI-related trades, which could keep FIIs cautious on Indian equities and lead to continued selling.
According to him, this may cap gains in large-cap stocks, and more action could shift to the broader market. He added that any rally driven by domestic political developments could be used by FIIs to book profits, while the global AI trend may continue to weigh on markets in the near term.
