The domestic equity benchmarks staged a rebound on Monday, recovering from the previous session's sell-off as broad-based buying improved sentiment. Gains were supported by robust April auto sales data, favourable election trends in West Bengal and better-than-expected Q4 earnings. The benchmarks opened on a firm note, with the Nifty 50 nearing the 24,300 mark in early trade. However, mid-session profit booking trimmed gains, with the index still managing to close above 24,100, supported by metal and healthcare stocks. Investor sentiment remained cautiously optimistic despite lingering concerns over tensions in West Asia and the US-led Project Freedom initiative to reopen the Strait of Hormuz. Elevated Brent crude prices and pressure on the rupee capped further upside, while ongoing earnings announcements drove stock-specific movements.

The S&P BSE Sensex advanced 355.90 points or 0.46% to 77,269.40. The Nifty 50 index rallied 121.75 points or 0.51% to 24,119.30.

Reliance Industries (up 2.24%), Larsen & Toubro (up 2.18%) and HDFC Bank (up 0.87%) supported the indices today.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index jumped 0.62% and the BSE 250 SmallCap Index surged 1.07%.

The market breadth was strong. On the BSE, 2,470 shares rose and 1,778 shares fell. A total of 245 shares were unchanged.

2026 Assembly Polls: Vote Counts Underway in 5 States:

As of 4:39 PM IST on 4 May 2026, counting trends released by the Election Commission of India show the Bharatiya Janata Party leading in West Bengal with 190 seats (8 won) and in Assam with 63 seats (19 won). In Tamil Nadu, TVK is ahead with 101 seats (7 won), followed by the Dravida Munnetra Kazhagam at 53 (6 won) and the All India Anna Dravida Munnetra Kazhagam at 44 (0 won). In Kerala, the Indian National Congress leads with 22 seats (41 won), while the Communist Party of India (Marxist) stands at 6 (20 won). Puducherry shows a fragmented outcome with the All India N.R. Congress leading in 2 seats (9 won) and the DMK leading in 4 (1 won). These figures reflect trends among the top five parties and remain subject to change as counting progresses.

Economy:

India's manufacturing momentum showed only a modest improvement in April, with the HSBC India Manufacturing PMI rising to 54.7 from 53.9 in March, but still marking the second-slowest expansion in nearly four years. Growth in new orders and output remained subdued, making it the second-weakest performance since 2022, although export demand provided some support with the fastest rise since September last year. Meanwhile, ongoing tensions in West Asia pushed up cost pressures, with input prices rising at the fastest pace in 44 months and output prices increasing at a six-month high.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell 0.09% to 7.012 compared with previous session close of 7.018.

In the foreign exchange market, the rupee lowered against the dollar. The partially convertible rupee was hovering at 95.2375 compared with its close of 94.8400 during the previous trading session.

MCX Gold futures for 5 June 2026 settlement fell 1.09% to Rs 149,709.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.16% to 98.33.

The United States 10-year bond yield gained 0.80% to 4.411.

In the commodities market, Brent crude for July 2026 settlement jumped $5.36 or 4.96% to $113.53 a barrel.

Global Markets:

US Dow Jones futures fell 225 points, signalling a weak start for Wall Street later today.

European shares declined on Monday, led by losses in automakers, after Donald Trump said he would raise tariffs on cars and trucks imported from the European Union to 25%. The European Commission said it is keeping its response options open, adding to existing trade tensions between the US and the EU.

Most Asian indices ended higher. South Korea's benchmark index hit a record high, while Hong Kong advanced on gains in AI-driven technology stocks. Investor sentiment remained cautious amid ongoing tensions between the US and Iran, along with Washington's plans to secure shipping routes in the Strait of Hormuz. Markets in Japan and China were closed for a public holiday.

Over the weekend, Trump announced a new initiative to help vessels stranded in the Strait of Hormuz navigate through the narrow waterway, although details remained limited. On Monday, the Joint Maritime Information Centers said the US had established an 'enhanced security area' south of typical shipping routes and advised ships to coordinate closely with Omani authorities due to expected high traffic volumes.

Traditional routes through the strait are considered extremely hazardous due to the presence of naval mines that have not been fully cleared, according to the Associated Press. The waterway, located off Iran's southern coast, handles nearly a fifth of the world's oil shipments and has been severely disrupted amid escalating conflict involving the US, Israel and Iran.

The disruption has pushed up global oil and gas prices, raising concerns for economies worldwide and clouding the outlook for households and businesses. Reports indicate that the US is planning efforts to assist affected ships under an initiative dubbed 'Project Freedom,' expected to begin on Monday Middle East time. The United States Central Command said support could include guided-missile destroyers, aircraft, unmanned systems and personnel.

On Wall Street, the S&P 500 rose 0.29% to close at 7,230.12 on Friday, hitting a fresh intraday high. The Nasdaq Composite gained 0.89% to end at a record 25,114.44. In contrast, the Dow Jones Industrial Average fell 152.87 points, or 0.31%, to settle at 49,499.27.

Oil prices declined on Friday after Iran reportedly responded, through mediators, to recent US proposals aimed at easing tensions in the Middle East. However, Trump said he was not satisfied with the proposal, stating that Iran wants to make a deal but the terms remain inadequate.

Auto sales in April:

Hero MotoCorp shed 0.66%. The company reported dispatches of 566,086 units in April 2026, registering an 85.36% year-on-year (YoY) increase compared with 305,406 units in April 2025.

Tata Motors added 0.73%. The company reported a 28% year-on-year (YoY) increase in total commercial vehicle (CV) sales to 34,833 units in April 2026, compared with 27,221 units in April 2025.

Eicher Motors rose 3.08% after the company's unlisted subsidiary, VE Commercial Vehicles (VECV), reported a 6.9% year-on-year rise in commercial vehicle (CV) sales to 7,318 units in April 2026.

Meanwhile, Eicher Motors has reported 31% jump in total motorcycle sales to 1,13,164 units in April 2026 from 86,559 units in April 2025.

Mahindra & Mahindra (M&M) rose 0.24%. The company's overall auto sales for the month of April 2026 stood at 94,627 vehicles, a growth of 14% YoY, including exports.

Maruti Suzuki India advanced 2.02% after the carmaker reported a 33.29% jump in total sales volume to 2,39,646 units in April 2026 compared with 1,79,791 units in April 2025. On the production front, the company's total output jumped 16.45% to 209,565 units in April 2026 compared with 1,79,956 units produced in April 2025.

Ashok Leyland shed 0.86%. The company reported a 9% jump in total sales (domestic & exports) to 14,646 units in April 2026, compared with 13,421 units sold in April 2025.

TVS Motor Company added 0.26%. The company reported a 7% year-on-year increase in total sales for April 2026, with overall volumes rising to 473,970 units compared to 443,716 units in April 2025. Total two-wheeler sales grew 6% to 455,333 units during the month, up from 430,150 units in the same period last year.

Bajaj Auto gained 1.44% after the company reported a 40% increase in total auto sales to 5,13,792 units in April 2026, compared with 3,65,810 units sold in April 2025.

VST Tillers Tractors shed 0.02%. The company reported a strong 50.12% year-on-year growth in total sales for April 2026, with volumes rising to 3,483 units compared to 2,320 units in April 2025.

Atul Auto added 1% after the company reported a 73.97% rise in total sales to 3,001 units in April 2026, compared with 1,725 units sold in April 2025.

Escorts Kubota slipped 0.81%. The company reported a 24.4% year-on-year increase in tractor sales for April 2026, with total volumes rising to 10,857 units compared to 8,729 units in April 2025.

Steel Strips Wheels (SSWL) added 2.02%. The company reported a net turnover of Rs 500.85 crore for April 2026, marking an 18.09% year-on-year (YoY) increase compared to Rs 424.11 crore recorded in April 2025.

SML Mahindra shed 1.02%. The company said that it had sold 1,741 units in April 2026, registering a growth of 15% from 1,512 units sold in the same period last year.

Stocks in Spotlight:

Kotak Mahindra Bank slipped 2.82% after a foreign broker trimmed the bank's earnings estimates by 2%-3% due to concerns around net interest margins (NIMs) pressure.

Despite the revision, the foreign broker maintained a buy rating on the stock with a revised target price of Rs 473 down from 511, an upside of 23.2% from current levels. The brokerage noted that Q4 growth stood at 4.1% QoQ, supported by better NIMs and loan growth, with advances expanding at over 16% YoY. Asset quality improved, aided by lower slippages and reduced credit costs. However, the brokerage cut its target valuation multiple to 2x from 2.3x. The revised valuation is based on a sum-of-the-parts approach.

The bank reported a 13.37% jump in standalone net profit to Rs 4,026.55 crore on 3.46% increase in total income to Rs 17,291.10 crore in Q4 FY26 over Q4 FY25. Net interest income (NII) increased to Rs 7,876 crore in Q4FY26, up 8% from Rs 7,284 crore in Q4 FY25. Net interest margin (NIM) contracted to 4.67% in Q4 FY26 as against 4.97% in Q4 FY25.

Bharat Heavy Electricals surged 6.97% after the company reported a sharp jump in quarterly earnings. On a consolidated basis, the company posted a net profit of Rs 1,290.47 crore in Q4 FY26, up 155.82% YoY and 230.50% QoQ. Revenue from operations rose 36.87% YoY to Rs 12,310.37 crore in Q4 FY26, while growing 45.29% QoQ, driven by strong performance in both power and industry segments.

Valor Estate soared 19.98% after the Bombay High Court dismissed an appeal in a decades-old land dispute. The case relates to a 205-acre land parcel in Bhayandar, Thane, owned by its subsidiary Miraland Developers, which had been challenged by the Union of India's Salt Department. A Thane civil court had earlier ruled in favour of the company in April 2018, and the subsequent appeal filed in 2019 has now been rejected by the High Court on 30 April 2026. The decision effectively ends over 40 years of litigation and confirms ownership of the land in favour of the company's subsidiary.

Avenue Supermarts (DMart) dropped 4.72%. The company reported a 19.18% increase in consolidated net profit to Rs 656.59 crore in Q4 FY26, compared to Rs 550.90 crore in Q4 FY25. Revenue from operations rose 18.90% to Rs 17,683.86 crore in Q4 FY26 as against Rs 14,871.86 crore in Q4 FY25.

Bharat Heavy Electricals surged 6.97% after the company reported a sharp jump in quarterly earnings. On a consolidated basis, the company posted a net profit of Rs 1,290.47 crore in Q4 FY26, up 155.82% YoY and 230.50% QoQ. Revenue from operations rose 36.87% YoY to Rs 12,310.37 crore in Q4 FY26, while growing 45.29% QoQ, driven by strong performance in both power and industry segments.

Epigral climbed 10.49% after the company reported a sharp sequential improvement in performance for the March quarter. The company's standalone net profit soared 109.27% to Rs 81.93 crore in Q4 FY26, compared with Rs 39.15 crore in Q3 FY26. Revenue from operations jumped 23.29% QoQ to Rs 736.16 crore in Q4 FY26, on account of volume growth and improved realization.

Equitas Small Finance Bank surged 6.15% after the lender reported a sharp jump in quarterly earnings, supported by improving asset quality. The bank posted a net profit of Rs 213 crore in Q4 FY26, soaring 406% YoY and 136% QoQ. Net Interest Income (NII) came in at Rs 981 crore, rising 18% YoY and 15% QoQ.

Adani Ports and Special Economic Zone gained 5.30% after the company announced that it has handled 43.1 million metric tons (MMT) of total cargo in April 2026, which is higher by 15% on a year-on-year (YoY) basis.

Godrej Properties rallied 3.54% after its consolidated net profit jumped 70.13% to Rs 649.88 crore on a 41.98% increase in total income to Rs 3,806.65 crore in Q4 FY26 over Q4 FY25.

R R Kabel surged 13.22% after the company reported strong quarterly earnings, supported by robust growth in its core wires and cables segment. On a consolidated basis, the company posted a net profit of Rs 168 crore in Q4 FY26, up 30.1% YoY and 42% QoQ. Revenue from operations rose 33.7% YoY to Rs 2,964.1 crore in Q4 FY26, while increasing 16.9% QoQ.

NMDC declined 1.41%. The company reported a 16% year-on-year (YoY) increase in iron ore production to 4.64 MT in April 2026, compared with 4.00 MT in April 2025.

APL Apollo Tubes slipped 1.59%. The company has reported 20.9% rise in consolidated net profit to Rs 354.35 crore on a 14.1% rise in net sales to Rs 6,075.98 crore in Q4 FY26 as compared with Q4 FY25.

Indus Towers slipped 2.43%. The company reported a marginal increase in its consolidated net profit for the fourth quarter of FY26, with profit after tax (PAT) rising to Rs 1,792.9 crore from Rs 1,779.1 crore in the corresponding quarter last year. The company's revenue from operations grew 4.83% year-on-year to Rs 8,101 crore for the quarter ended 31 March 2026.

Central Depository Services (India) slipped 2.36% after the company has reported 20.5% fall in consolidated net profit to Rs 79.79 crore despite a 17.1% rise in revenue from operations to Rs 262.85 crore in Q4 FY26 as compared with Q4 FY25.

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