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Indian equity markets closed higher on Monday, May 5, led by a rally in energy stocks and gains across oil-sensitive sectors after crude prices slipped sharply. The Sensex ended 294 points higher at 80,850, while the Nifty 50 advanced 127 points or 0.52 per cent to 24,472, extending its gains for a second straight session.

Crude oil prices tumbled nearly 4 per cent after OPEC+ announced a production hike of 411,000 barrels per day starting June. The move triggered concerns of oversupply in the second half of the year. This supported strong buying in oil marketing companies like BPCL, HPCL, and IOCL, all of which ended with gains of up to 7 per cent.

Other crude-sensitive segments such as paint, aviation, and specialty chemicals also saw strong traction. Analysts said easing input cost pressure could lift Q1 FY26 margins for these sectors.

Broader markets outperformed headline indices, with Nifty Midcap 100 up 1.86 per cent and Nifty Smallcap 100 gaining 1.06 per cent. Among key movers, RR Kabel soared 15 per cent after the company posted robust Q4 earnings, sparking a rally in the entire cables and wires space.

Investor mood was lifted by positive global triggers including better-than-expected US jobs data, easing US-China trade tensions, and optimism around India’s potential trade talks with the US. Overseas funds continued to pour into Indian equities, boosting overall market breadth.

With the US Fed’s policy meet set to begin Tuesday, traders are watching for cues on interest rates. While the probability of a rate cut stands at just 3.2 per cent, markets will focus on Fed Chair Jerome Powell’s commentary on inflation and growth trajectory.

Analysts suggest 24,500–24,550 may act as resistance for the Nifty, with support seen around 24,300–24,250 in the near term. Sustained buying from FIIs and positive earnings momentum could keep dips limited, say experts.

The overall trend remains bullish with sectoral rotation and strong undercurrents from global and domestic cues.

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