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Informist, Tuesday, Jan. 28, 2025

By Akash Mandal

MUMBAI – Benchmark indices may extend gains for the second straight session Wednesday, analysts said. However, there is some uncertainty as the Nifty 50 closed below the psychologically crucial 23000 level Tuesday, erasing a part of the gains made earlier in the session. The market is likely to be on tenterhooks till it finds direction, they said. 

The Nifty 50 ended at 22957.25 points, up 128.10 points or 0.6% and the BSE Sensex closed at 75901.41 points, up 535.24 points or 0.7%. The three Nifty mid-cap indices recovered briefly during late morning trade but ended down almost 1% each. All three small-cap indices also came off lows, ending down almost 2% after being down almost 4% each earlier in the session. 

The Nifty 50 might gain in early trade Wednesday, but might see some profit-taking later in the day, Ameya Ranadive, senior technical analyst at BP Wealth, said. Going forward, the Nifty 50 is expected to consolidate in the range of 22800-23000 until the Budget. There have been some macroeconomic data that have been positive in recent times, which indicates green shoots of recovery for the market, he said. The US benchmark bond yields, dollar index, and crude oil prices have all cooled off over the past week, which is a big positive for the domestic market, Ranadive said. The open market operations announced Monday by the Reserve Bank of India will provide support to the rupee, which is also a positive for stocks, the analyst said. "If you look at the FPI (foreign portfolio investor) derivatives data, they have started building long positions (compared to the short positions in recent times)... this indicates the market will go up in the near term," Ranadive said. 

On the earnings front, shares of Bajaj Auto will be in focus Wednesday after the company reported its December quarter earnings after market hours. The company reported a net profit of INR 21.09 billion for the quarter, lower than the Street estimate of INR 21.50 billion. Investors will also digest earnings from Suzlon Energy after the company's consolidated net profit for the quarter almost doubled to INR 3.87 billion on revenues of INR 29.75 billion. Colgate Palmolive's net profit missed analysts' estimates, while JSW Infrastructure's net profit beat estimates. Bharat Heavy Electricals, Exide Industries, GMR Airports, Mahindra & Mahindra Financial Services, SBI Cards and Payment Services, and Star Health and Allied Insurance Co. will also report their Oct-Dec earnings later Tuesday. 

Meanwhile, Maruti Suzuki India, Bajaj Finance, and Tata Motors will report their earnings for the quarter on Wednesday. Tata Motors is expected to report an 11% year-on-year fall in its Oct-Dec net profit to INR 62.9 billion, while Maruti Suzuki's net profit is expected to grow more than 15% on year to INR 36.04 billion. Bajaj Finance's net profit is expected to grow almost 15% on year to INR 41.72 billion. Ambuja Cements, Adani Power, Indian Bank, KPIT Technologies, SRF, and Voltas will also announce their earnings for the quarter during the day. 

The outcome of the US Federal Reserve's two-day policy meeting will also be released late Wednesday. While the Fed Reserve is widely expected to hold rates steady, investors would eye the commentary from the meeting.  End

US$1 = INR 86.52

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

Edited by Saji George Titus

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