Today's stock market: Nifty 50 and Sensex close higher, but they are off day highs on profit booking; this is the third week of gains.

The benchmark indices saw a dramatic reversal in the second half of the session after the Indian stock market closed Friday, May 2, in the green, but it fell precipitously from the day's highs as investors booked profits at higher levels.

After starting the day flat, it picked up steam in the early hours thanks to a robust financials surge. But as the session went on, the market was unable to keep up, losing the most of its gains to finish with only slight gains. The Nifty 50 closed at 24,346, up 0.05% from the previous close, but dropping 243 points from the day's peak. In the meantime, the Sensex ended the session up 0.34%, ending at 80,517, after removing 662 points from its intraday peak. Due in major part to a recovery in foreign investor attitude for Indian stocks, both indices saw a wild ride, but they continued their winning streak for a third consecutive week.

The week finished with gains of 1.64% for the Sensex and 1.28% for the Nifty 50. Foreign investors have mostly been net sellers since the benchmarks reached all-time highs in September, but they are now coming back in the midst of growing hope that India's domestically oriented economy will enable it to weather the global trade war better than many of its rivals.

They invested a total of ₹37,400 crore in Indian stocks during the last 11 trading sessions (April 15–30), remaining net buyers. Due to a holiday, Indian marketplaces were closed on Thursday.

A bilateral trade agreement between the US and India is now being actively pursued. President Trump bolstered the recent surge in Indian stocks on Tuesday, April 29, by expressing optimism about the ongoing trade negotiations and implying that a tariff agreement between the two nations is imminent. Furthermore, trade tensions between Beijing and Washington also seem to be easing as China stated that it is considering U.S. offers to start trade talks. This could open the door for the two biggest economies in the world to start negotiations to end a trade war that has shook financial markets and slowed down global economic activity.