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Frontline indices—the Sensex and the Nifty 50—erased most of their gains and ended slightly higher on Friday, May 2, due to profit booking at higher levels, amid ongoing concerns over the evolving situation between India and Pakistan and the absence of fresh positive triggers.

The Sensex rose as much as 936 points to hit an intraday high of 81,177.93. However, the index finally closed just 260 points, or 0.32 per cent, higher at 80,501.99.

The Nifty 50 reclaimed 24,589.15, rising 255 points, or 1 per cent, but eventually settled with a nominal gain of 13 points, or 0.05 per cent, at 24,346.70.

The BSE Midcap and Smallcap indices, which rose up to a per cent in the morning session, ended with losses of 0.41 per cent and 0.07 per cent, respectively.

Let's take a look at 10 key highlights of the stock market today:

The Nifty 50 ended flat for the third consecutive session amid ongoing concerns over geopolitical tensions, uncertainty surrounding tariff deals, and fears of a US recession.

According to Amit Jain, the co-founder of Ashika Global Family Office Services, the market struggles to sustain rallies because every uptick is quickly met with profit-booking amid global uncertainty. Factors like Trump’s tariff moves, fears of a US recession, and volatility in crude oil prices keep sentiment cautious.

Fresh US macro data have aggravated concerns that the world's largest economy is experiencing the pain of the trade war. A slowdown in the US economy will have a cascading effect on its trading partners.

The US GDP contracted at a 0.3 per cent annualised rate in the first quarter of the current calendar year. US manufacturing contracted for a second straight month in April. The ISM's manufacturing PMI dropped to a five-month low of 48.7 in April from 49.0 in March.

While India's macro picture looks promising amid the prospects of a normal monsoon, it cannot remain immune to global turmoil. 

"While domestic fundamentals remain strong, valuations in certain pockets—especially mid- and small caps—have become stretched, prompting investors to lock in gains. Given the global noise, a 'sell on rally' mindset prevails, where traders are unwilling to hold risk for too long," said Jain.

(This is a developing story. Please check back for fresh updates.)

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stories by Nishant Kumar

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