Indian equity markets are set for a muted to negative opening on May 5, with GIFT Nifty trading at 24,030, below the previous close of the Nifty 50 at 24,119.30.
On Monday, domestic benchmarks ended higher, with the BSE Sensex gaining 356 points to close at 77,269.40, supported by global cues and intraday buying momentum.
Global signals remain mixed. The Hang Seng Index opened lower, down 0.58%, while markets in Japan, South Korea, and China remain shut due to holidays. Commodity markets also showed slight weakness, with Brent Crude trading above $113 per barrel despite a marginal decline, and West Texas Intermediate falling over 1%.
Earnings Watch: Heavyweights in Focus
Key companies including Larsen & Toubro, Mahindra & Mahindra, Hero MotoCorp, and Marico are scheduled to announce their Q4 results today, which could drive stock-specific action.
Street expectations indicate steady growth:
- Larsen & Toubro is expected to report ~8.7% revenue growth driven by execution momentum.
- Mahindra & Mahindra may see strong volume-led growth, though margins could face pressure due to commodity costs.
- Marico is likely to post over 20% revenue growth, supported by pricing and volume expansion.
Auto Sales Signal Demand Strength
According to Federation of Automobile Dealers Associations, vehicle retail sales rose 12.94% year-on-year in April, indicating sustained demand momentum in the auto sector, particularly in passenger vehicles.
Stocks in Focus Post Earnings
Several companies will remain in focus following earnings announcements:
- Wockhardt returned to profitability.
- Petronet LNG reported strong margin expansion.
- Tata Technologies posted improved earnings and outlook.
- Tata Chemicals reported a significant loss due to one-time costs.
Brokerage & Macro Outlook
Brokerages remain divided on select stocks:
- Positive outlook continues on Godrej Properties, citing growth visibility.
- Mixed views on Bharat Heavy Electricals Limited despite improved execution.
On the macro front, global geopolitical developments and oil price movements remain key variables influencing sentiment. Additionally, brokerage commentary suggests recent political developments could support policy continuity and coordination.
Market Outlook
With weak global cues, lower GIFT Nifty trends, and key earnings lined up, markets are expected to remain volatile with a stock-specific bias. Investors will closely track management commentary, margin outlooks, and global commodity movements for near-term direction.
