Top Stock Recommendations: Dharmesh Shah of ICICI Securities suggests buying SBI, and Power Grid Corp tomorrow
Stock Market News: The domestic benchmark indices, the Sensex and Nifty 50 plunged dramatically down on Friday, May 3, as profit taking across sectors prevented them from holding the gains seen in early trade. On Friday, the 30-share BSE Sensex closed at 73,878.15 level, down 732.96 points, or 0.98%.
The NSE Nifty 50 ended at 22,475.85, down 172.35 points, or 0.76%. Analysts said that sentiment, fundamentals, and overbought technical situations were in conflict.
Excessive optimism, overbought technical conditions, and the revelation that FIIs were net sellers of ₹2,116 crores last week were the three negative catalysts that gave rise to the bears' emergence in Friday's trade amid massive profit booking. Also Read: Stock market news: Sensex crashes 1%; India VIX jumps 9%; why did Indian stock market fall today?- explained Nifty 50 bulls could stay strong against a background of six favourable triggers, according to Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities.
These include Federal Reserve Chairman Jerome Powell's dovish stance on interest rates. (Powell restored hope that the Fed will be able to lower interest rates this year); In the meantime, the Fed's expectations for a rate cut have been pushed back from November to September due to a weaker-than-expected April jobs report; WTI oil prices have dropped 6.5% to a seven-week low of $78.30 per barrel; and record-high GST revenue.
Gross Goods and Services Tax collections hit a new high of ₹2.10 lakh crore in April 2024. This indicates a noteworthy annual growth of 12.4%, mostly due to a robust rise in both domestic transactions (up 13.4%) and imports (up 8.3%); Finally, at the pre-election rally, investors expressed hope or
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