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Informist, Tuesday, Mar. 11, 2025

By Akash Mandal

MUMBAI – The strong recovery seen in the later part of Tuesday is likely to continue Wednesday. Derivatives analysts who had predicted a rally in the latter half of this week are sticking to their view despite the sell-off in most global markets. However, any shocks on the US tariffs or policy front could impact the quantum of gains, analysts said.

Morgan Stanley India is positive on Indian equities. The financial services firm on Monday said the country's economic growth is recovering slowly, and that the valuations are attractive in comparison to global peers. It also said the domestic market is expected to be robust even during the current uncertainty. "The (Indian) market has ignored the RBI's policy pivot, and a strong budget from the government, among other positive developments since early February. India's low beta characteristic make it an ideal market for the uncertain macro environment that equities are dealing with," the firm said in the report.

The Nifty 50 might reach 22600-22700 level in the near-term if the index stays above its crucial support of 22250 points, said Jigar Patel, senior manager of equity research at Anand Rathi Shares & Stock Brokers. "The GIFT Nifty had recovered quite a bit before market open...the Nifty (Nifty 50) also recovered after a lower open...this shows that there is a high chance of a rally," Patel said.

Anshul Jain, head of research at Lakshmishree Investment and Securities, believes the Nifty 50 could rise to 22800 points within the next couple of weeks. "The Nifty Bank has definitely bottomed out, but it is harder to say for the Nifty 50 due to the global uncertainty...prima facie, the Nifty also looks to have bottomed out," Jain said. However, broader market indices still have long to go, and mid-cap stocks can further correct 10-15% before valuations are comfortable, he said.

For Wednesday, analysts peg support for the Nifty 50 at 22300-22250 points and resistance at 22800 points. Tuesday, the Nifty 50 ended at 22497.90 points, up 37.60 points or 0.2%, and the Sensex closed at 74102.32 points, down 12.85 points. Both the indices had opened 0.5% lower due to concerns about a slowdown in the US economy. 

Payment services companies such as One97 Communications and One Mobikwik Systems may face pressure after The Economic Times reported that the government is evaluating a proposal to bring back merchant charges on transactions conducted through unified payments interface and RuPay debit cards.

Investors will also look out for India's consumer price index for February, due Wednesday, which will be a key metric for the Reserve Bank of India to decide on the rate cut trajectory. The US' consumer price index data for February is also set to be released post market hours Wednesday.

Among individual stocks, Rail Vikas Nigam might see some action after the company was declared the lowest bidder for an INR 5.55-billion project from the National Highways Authority of India in Andhra Pradesh. Shares of Godrej Agrovet will also be in focus after the company announced that it would buy the remaining 48% stake in Creamline Dairy Products.  End

Edited by Ashish Shirke

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