Nifty Likely to Open Above 24,500; Crude Oil Crashes, SBI in Focus After Q4 Results
Pre-Market Update today (May 05, 2025): Indian markets are expected to open on a strong note, with the Nifty 50 likely to open above the 24,500 mark, as indicated by Gift Nifty.
Positive global cues are supporting the bullish sentiment, with Wall Street closing higher on Friday—the S&P 500 and Dow Jones both extending their winning streaks to nine consecutive sessions.
The positive catalysts for Indian markets are:
The institutional flows remained strong for the last few weeks to lift Indian markets higher.
In April, Foreign Portfolio Investors (FPIs) made a comeback as net buyers in Indian equities after a gap of three months, investing ₹4,223 crore. This positive shift was driven by a mix of supportive global signals and strong domestic economic indicators.
On May 02, Foreign Institutional Investors (FIIs) were net buyers, purchasing ₹2,769.81 crore worth of shares. Domestic Institutional Investors (DIIs) purchased shares worth ₹3,290.49 crore during the same period.
FIIs remain net buyers for the last twelve trading sessions, infusing optimism in the Indian stock market, while DIIs are following the same trend since the last five trading sessions.
According to RBI data, India’s foreign exchange reserves increased by $1.983 billion, reaching $688.129 billion as of the week ending April 25. This marks the eighth consecutive week of growth in the country's forex reserves.
India’s largest PSU Bank, State Bank of India (SBI) reported its results for the January-March quarter of fiscal year 2024-25 (Q4FY25) on May 3, reporting a 10% decline in standalone net profit to ₹18,642.59 crore, down from ₹20,698.35 crore in the same period last year. The bank's net interest income (NII) reached ₹42,774 crore.
SBI's operating profit for the entire fiscal year FY25 exceeded ₹1 lakh crore, marking a 17.89% year-on-year (YoY) increase, totalling ₹1,10,579 crore. For Q4FY25, the operating profit grew by 8.83% YoY, amounting to ₹31,286 crore. Additionally, the bank announced a dividend of ₹15.90 per share (1,590%), with the record date set for May 16, 2025.
Mahindra and Mahindra, Indian Hotels Company, Coforge, Computer Age Management Services, OneSource Speciality Pharma and DCM Shriram to announce their Q4 earnings today.
Indian stock market benchmarks closed in the green on Friday but gave up a large part of their intraday gains due to profit booking at higher levels. The Sensex ended 259.75 points higher at 80,501.99, marking a rise of 0.32%, while the Nifty 50 added just 12.50 points, or 0.05%, to settle at 24,346.70.
Several major Asian stock markets remained closed on Monday due to public holidays, including Japan, South Korea, Hong Kong, and China.
U.S. stock markets closed higher on Friday, marking a second consecutive week of gains. The rally was supported by encouraging economic indicators and signs of easing trade tensions between the U.S. and China.
The Dow Jones Industrial Average jumped 564.47 points (1.39%) to finish at 41,317.43. The S&P 500 rose by 82.54 points (1.47%) to end at 5,686.68, while the Nasdaq Composite advanced 266.99 points (1.51%) to settle at 17,977.73. On a weekly basis, the Dow gained 3%, the S&P 500 added 2.9%, and the Nasdaq climbed 3.43%.
Crude oil prices saw a sharp decline of over 3% following OPEC's decision to ramp up production, which is expected to enhance global supply levels. Brent crude dropped by 3.13% to settle at $59.37 per barrel, while US WTI crude futures slipped 3.35%, ending at $56.34.
Disclaimer: The article is for informational purposes only and not investment advice.
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