Sensex climbs 294.85 points to settle at 80,796.84; Nifty rises 114.45 points to 24,472

Markets closes higher mostly led by energy and crude-sensitive stocks.

Nifty 50 rose by 0.52% to close at 24,472, marking its second consecutive day of gains. ANI

India’s stock markets closed higher on Monday, May 5, with benchmark indices Sensex and Nifty 50 gaining ground, mainly boosted by energy stocks. This came after global crude oil prices fell sharply due to concerns about rising supply. The drop in oil prices also lifted stocks in paint, aviation, and chemical sectors, which benefit from lower crude costs.

The key factors behind the market gains included a 4 percent drop in crude oil prices and a positive global cues. OPEC members announced today a production hike of 411,000 barrels per day starting in June. This could increase total output by up to 2.2 million barrels per day by November, raising fears of oversupply.

A few other developments globally that may have positive impacts on the economies also added to the upbeat sentiment in the market. This mainly includes US job data, India's trade deal with the US, eased traded tensions between the US and China, and a continued foreign investor inflows to the Indian markets.

Market Performance:

• Nifty 50 rose by 0.52% to close at 24,472, marking its second consecutive day of gains.

• Sensex gained 294 points (0.43%) to finish at 80,850.

• Midcap and smallcap stocks performed even better:

  • Nifty Midcap 100 rose 1.86%.

  • Nifty Smallcap 100 was up 1.06%.

At the end of the trade on Monday, Adani Group stocks surged between 2% and 11%, following reports that representatives of the Group's chairman Gautam Adani met with US officials to seek the dismissal of criminal charges related to a foreign bribery probe. The case, filed in November by US prosecutors, involves alleged bribes to Indian officials for favourable contracts in the solar energy sector. The other stocks that remained up were the public oil marketing companies and wires and electric accessories manufacturer RR Kabel.

RR Kabel shares jumped 15% after the company posted strong results for the March quarter, drawing investor attention to the broader cables and wires sector.

The Oil Marketing Companies (OMCs) like HPCL, BPCL, and IOCL gained up to 7%, driven by the sharp fall in crude oil prices.