The domestic equity benchmarks traded with modest gains in early trade. The Nifty traded above 22,550 mark. IT, realty, private bank stocks advanced while PSU bank, metal and oil & gas shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 419.25 points or 0.57% to 74,300.81 . The Nifty 50 index added 93.40 points or 0.42% to 22,569.25.

The broader market underperformed the frontline indices, the S&P BSE Mid-Cap index fell 0.42% and the S&P BSE Small-Cap index lost 0.11%.

The market breadth was positive. On the BSE, 1,543 shares rose and 1,490 shares fell. A total of 146 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,391.98 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 690.52 crore in the Indian equity market on 3 May, provisional data showed.

Market participants will focus on the HSBC Services PMI (final) numbers for April, due on May 6.

Economy:

In the third consecutive weekly decline, India’s forex reserves dropped $2.412 billion to $637.922 billion during the seven days ended April 26, according to the RBI data.

For the week ended April 26, the foreign currency assets — a major component of the reserves — decreased $1.159 billion to $559.701 billion, the data released on Friday showed.

Gold reserves decreased $1.275 billion to $55.533 billion during the week. The special drawing rights (SDRs) were up $15 million to $18.048 billion, said the RBI.

India’s reserve position with the IMF was also up $8 million to $4.639 billion in the reporting week, the apex bank data showed.

Politics:

The third phase of voting for the Lok Sabha elections 2024 will be held on 7 May 2024. In the third phase, voting will take place in 96 LS constituencies from 12 states, including Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Uttar Pradesh, and West Bengal. The BJP aims for a third consecutive term, while the opposition, including the Congress, has formed the Indian National Developmental Inclusive Alliance (INDIA) bloc to oppose PM Modi's re-election. These elections span over seven phases from April 19 to June 1, and the results will be announced on June 4.

Stocks in Spotlight:

Kotak Mahindra Bank jumped 4.34% after the Bank reported 18% rise in standalone net profit to Rs 4,133 crore in Q4 FY24 from Rs 3,496 crore in Q4 FY23. Total income of the bank increased by 27% YoY to Rs 15,285.35 crore during the period under review.

Titan Company slipped 4.51%. The Tata Group company reported 7.08% rise in standalone net profit to Rs 786 crore in Q4 FY24 as against Rs 734 crore reported in Q4 FY23. Revenue from operations jumped 17.47% year on year (YoY) to Rs 10,047 crore in the quarter ended 31 March 2024.

Avenue Supermarts (Dmart) added 0.84%. The company reported consolidated net profit of Rs 563 crore in Q4 FY24 as against Rs 460 crore reported in Q4 FY23. Revenue from operations rose to Rs 12,727 crore in the quarter ended 31 March 2024 from Rs 10,594 in the quarter ended 31 March 2023.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.36% to 7.123 as compared with previous close 7.149.

In the foreign exchange market, the rupee is edged higher against the dollar. The partially convertible rupee was hovering at 83.4525, compared with its close of 83.4550 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement rose 0.40% to Rs 70,938.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.12% to 105.16.

The United States 10-year bond yield rose 0.16% to 4.505.

In the commodities market, Brent crude for July 2024 settlement gained 15 cents or 0.18% to $ 83.11 a barrel.

Global Markets:

Most of the Asian stocks trading higher on Monday as a softer-than-expected U.S. jobs report fueled hopes that the Federal Reserve could start cutting rates soon. Investors, meanwhile, awaited the Reserve Bank of Australia’s rate decision on Tuesday and China’s April trade data on Thursday. Japan and South Korea’s markets are closed for a public holiday.

U.S. stocks closed sharply higher Friday, as Treasury yields fell after a softer-than-anticipated April jobs report.

The Berkshire Annual Meeting 2024 on Saturday proceeded in Omaha with Warren Buffett, Greg Abel, and Ajit Jain fielding shareholder queries. Buffett spoke on a variety of issues, including the India opportunity, stock market outlook, US dollar, AI, Apple stake cuts, global investments and more.

The U.S. economy added fewer jobs than expected in April while the unemployment rate rose. Nonfarm payrolls increased by 175,000 on the month. The unemployment rate ticked higher to 3.9%, compared to 3.8% in the prior month, according to the Bureau of Labor Statistics.