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Informist, Friday, Feb. 14, 2025

By Akash Mandal

MUMBAI – Benchmark indices are seen lower next week as sentiment in the market is negative amid weak growth in corporate earnings during the December quarter, concerns related to tariffs, and a weakening rupee, analysts said. While there might be some temporary bounce back sometime next week considering sharp losses this week, indices are largley expected to decline and the Nifty 50 may hit 22500 points during the week, two technical analysts said. 

"The volatility in the stock market might continue in the short term...markets may stabilise only in Q1 (Apr-Jun) of the next financial year," Narendra Solanki, head fundamental research at Anand Rathi, said. Solanki cited continuous selling by foreign investors, underwhelming macroeconomic data, and tepid earnings growth as the main concerns which are hurting sentiment. "Only the inflation data was positive...the rest such as PMI (Purchasing Managers' Index) and GDP (gross domestic profuct) have all been underwhelming," Solanki said. The analyst believes the GDP might start picking up in the next financial year with some benefit of low base effect. 

Solanki was unsure about whether the sell-off by foreign investors will stop anytime soon. "The dollar index has risen sharply over the past few weeks and is likely to moderate to its mean naturally...however, the volatility in the current market makes it difficult to predict the movement of the dollar index," Solanki said.

Other analysts also share a similar view. The Nifty 50 might see a slight bounce back sometime during the next week but the Nifty 50 is likely to further plunge to 22500 points, Kshitija Salvi, technical analyst at IDBI Capital Market & Securities, said. After the sharp selling this week, which pushed the Nifty 50 down 2.7% this week, there is hope of a slight rise next week due to oversold conditions on the technical charts. However, the Nifty 50 is likely to face resistance at 23300 points. 

On Friday, the Nifty 50 index settled at 22929.25 points, down 102.15 points, or 0.4%, and the BSE Sensex closed at 75939.21 points, down 199.76 points, or 0.3%. The index had fallen briefly below its previous key support of 22800 points to an eight-month intraday low of 22774.85 points before erasing some of its losses. Broader market indices plunged with the smallcap and midcap indices down 2-4%.

Shares of Rail Vikas Nigam and Aditya Birla Fashion Capital will be in focus Monday as they will declare their December quarter results later Friday. The earnings season for the top 200 companies will draw to a close with ABB India's quarterly earnings Monday. The capital goods company's net profit for the quarter is seen rising 35% on year.  End

Edited by Deepshikha Bhardwaj

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