India Stocks Outlook
Seen up Tue after sharp fall Monday; gains seen capped
This story was originally published at 18:43 IST on 27 January 2025
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By Akash Mandal
MUMBAI – Benchmark indices may open higher Tuesday after the sharp fall on Monday, analysts said. However, the overall sentiment is still weak, and the gains are unlikely to sustain due to underwhelming December quarterly earnings.
The Nifty 50 index might bounce back by 200-300 points early in the day, but could fall later in the day due to selling pressure, Hardik Matalia, technical and derivatives research analyst at Choice Broking, said. Matalia expects the index to take support at 22600 points in the case of a further fall.
On the other hand, Brijesh Ail, head of technical and derivatives at IDBI Capital Markets & Securities, expects the benchmark indices to bounce back in the second half of the week. The Nifty 50 might face more selling pressure and could breach 22800 points intraday, Ail said. However, the index will take support at that level, and is expected to rapidly recover thereafter, the analyst said.
The Nifty 50 on Monday closed at 22829.15 points, down 263.05 points, or 1.1%. The BSE Sensex closed at 75366.17 points, down 824.29 points, or 1.1%. The 50-stock index closed below the key 23000 level for the first time in more than seven months and the Sensex ended below the 76000-mark for the second time so far in January.
Matalia also said volatility will increase throughout the week. "The (India) VIX has been between 11 and 15 for two months now...it will have a breakout and might reach 21 this week," Matalia said. The domestic market was volatile Monday, with the India VIX jumping more than 8% to 18.1, hinting at near-term nervousness in the market.
Shares of Coal India will be in focus, with the company reporting a consolidated net profit of INR 85.06 billion for the December quarter, slightly lower than analysts' estimates of INR 85.16 billion, after market hours Monday. This was on a consolidated revenue of INR 357.80 billion. Tata Steel will report its earnings later in the day.
360 One Wam, Piramal Enterprises, and Petronet LNG were also among the companies that reported their December quarter earnings after market hours Monday. Federal Bank, Union Bank of India, Indraprastha Gas, and The New India Assurance Co. are among the companies that will report their earnings later in the day.
Tuesday will be a busy day on the earnings front as Bajaj Auto and Cipla will detail their Oct-Dec earnings, alongside Bosch, TVS Motor Co., Bharat Heavy Electricals, JSW Energy, GMR Airports, Hindustan Zinc, and SBI Cards and Payments Services. CG Power and Industrial Solutions, Suzlon Energy, Colgate Palmolive (India), Mahindra & Mahindra Financial Services, and JSW Infrastructure are the other companies that will report their results during the day.
Investors will also keep an eye on the US Federal Reserve's policy meeting, which will commence late Tuesday. The US Consumer Confidence index for January is also set to be released late Tuesday. End
Edited by Ashish Shirke
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