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Informist, Monday, Mar. 3, 2025

By Akshita Kumar

MUMBAI – Analysts expect benchmark indices to fall Tuesday amid uncertainty related to US President Donald Trump's policies on tariffs, and sustained outflows by foreign investors. Further, the possibility of further downgrades in estimates after the March quarter earnings is also likely to dent sentiment, analysts said.

"Government and corporate payments are getting delayed to their suppliers, which is creating a lot of financial stress in the system," Vinit Bolinjkar, head of research at Ventura Securities said. "Corporate results during the March quarter earnings are not going to be great and we might see earnings per share downgrades during the quarter". When asked about FIIs, Bolinjkar said they are selling continuously in India as they find markets such as Europe, China, and US more attractive than India.

The GDP growth of 6.2% in the December quarter, was in line with market expectations and, in a way, indicating bottoming out in economic activity in the September quarter, brokerage JM Financial said in a research report. Moreover, considering that the base quarter has undergone significant revision of 90 basis points, the performance in the December quarter seems robust, the brokerage said. 

JM Financial belives that in order to meet the annual target of 6.5% in the current fiscal year, the expected growth in the March quarter seemed higher. However, the brokerage said the growth may fall short of the government target to 6.3-6.4% for 2024-25 (Apr-Mar). 

The core gross value added growth for the December quarter was 5.9%, only tad better than 5.6% in the September quarter, brokerage Nirmal Bang Institutional equities said in a research report. This suggests that despite growth bottoming out, the cyclical slowdown still persists, the brokerage said.

Monday, the Nifty 50 closed marginally lower at at 22119.30 points. The index saw a recovery from lows after it almost touched the key support of 22000 points, but the buying was not enough for the Nifty 50 post gains. The BSE Sensex ended at 73085.94 points, down 112.16 points, or 0.2%. Going ahead, 21800-21680 points is likely to act as an important support on the down side, Vipin Kumar, assistant vice-president of technical and derivatives at Global Capital Market said.

Analysts have not ruled out a pull-back rally as continous decline has pushed indices to oversold zone on the technical charts. Kumar pegs the Nifty 50's restiance at 22450-22550 points.

Monday, broader market indices ended mixed. Mid-cap indices ended up 0.1-0.5%. The Nifty Smallcap 50 ended up 0.2%, while the Smallcap 100 and Smallcap 250 ended down 0.3% and 0.6%, respectively. Kumar suggests to continue with sell on rise trading strategy. The Nifty Midcap 50 index is is likely to find support at 13300-13090 points and the Nifty Smallcap 100 at 14300-14050 points, Kumar said.

Among specific stocks, shares of Indian Energy Exchange will be in focus during Tuesday's trading session. Post market hours, the company said its trade volume for February was 9.62 billion units, up 9% on year.  End

Edited by Deepshikha Bhardwaj

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