More Stories

Informist, Monday, Jan. 20, 2025

By Akash Mandal

MUMBAI – Benchmark indices might open higher Tuesday, extending gains notched Monday. However, the gains will be limited as investors are cautious amid rising volatility in the domestic market and Donald Trump assuming office in the US. The India VIX, which indicates the volatility in the market, jumped 4.2% Monday and has risen almost 8% over the past three sessions.

Though Donald Trump is unlikely to make any changes in policy immediately as he takes charge as the US president later Monday, investors will eye the policy announcements by the Republican government, analysts said. The Nifty 50 is expected to sustain above the 23330-point level Tuesday and will face selling pressure at 23650 points, Mandar Bhojane, equity research analyst at Choice Broking, said. If the index falls, it will take support at 23100 points, Bhojane said.

Going forward, the momentum of the indices will depend on corporate earnings announcements, a technical analyst from a domestic brokerage said. The Nifty 50 might reach 23500 points Tuesday, where it might face resistance, the analyst said. The gains will be muted and the Nifty 50 might see an uptick of 50-100 points, the analyst said.

The Nifty 50 ended at 23344.75 points, up 141.55 points, or 0.6%, and the BSE Sensex ended at 77073.44 points, up 454.11 points, or 0.6%. Broader market indices rose throughout the session and outperformed the benchmark ones. The Nifty small- and mid-cap indices ended 0.8-1.2% higher. Most small-cap indices outperformed their mid-cap counterparts.

Shares of Dixon Technologies (India) will be in focus after the company, post market hours Monday, said its consolidated net profit rose over 77% on year to INR 1.71 billion for the December quarter. However, despite this strong bottom line growth, it missed analysts' estimates. Oberoi Realty also reported its December quarter earnings post market hours Monday, with its consolidated net profit missing the Street's view. Investors will also react to the post-earnings conference calls of Zomato, One 97 Communications, Supreme Industries, Indian Overseas Bank, and APL Apollo Tubes. L&T Finance will table their earnings later Monday. Investors will look forward to the quarterly earnings for ICICI Prudential Life Insurance and Tata Technologies to be reported Tuesday.

Shares of telecom companies may react further after television channel ET Now reported that the government is considering a proposal to waive 50% interest and 100% penalties and interest on penalties which make up the bulk of adjusted gross revenue dues that were levied on telecom companies after a 2019 Supreme Court order. Most telecom stocks closed sharply higher Monday. 

Meanwhile, Donald Trump will assume office as the US president later in the day. Investors will watch out for any announcements related to changes in policies in the US, such as tariff hikes and higher corporate taxes. Such polices, if implemented, are feared to increase inflation.  End

US$1 = INR 86.57

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.