More Stories

Informist, Monday, Apr. 21, 2025

MUMBAI – Benchmark indices may extend gains for the sixth straight session on Tuesday as the absence of any fresh negative shocks on the tariffs front and the return of foreign investors has turned sentiment positive at least for the near term, analysts said. However, there might be some profit booking either Tuesday or later in the week after benchmark indices have risen around 8% over the last five sessions.

Tuesday, the market might see some more gains or remain in a tight range, Kshitija Salvi, technical analyst at IDBI Capital Markets & Securities, said. However, if the Nifty 50 opens with a gap up, then it might face some selling pressure, Salvi said. Monday, the Nifty 50 closed at 24125.55 points, up 273.90 points or 1.2%, and the BSE Sensex ended at 79408.50 points, up 855.30 points or 1.1%. Both indices ended at their highest levels since Jan. 2. 

While the sentiment is positive in the near term, there has been no change in the long-term fundamentals of the market, Prashant Tapse, senior vice-president of research at Mehta Equities, said. Sentiment is currently positive due to the US pausing tariffs for 90 days, but the same will depend on the progress made by countries in negotiations with the US, Tapse said. "Until the index closes below the 200-DMA (200-day moving average) on a weekly basis, the sentiment is going to remain bullish," he said. The index's 200-DMA is at 24050 points, he said.

Global firm Nomura Global Markets Research has set the target for the Nifty 50 at 24970 points by March, implying an upside of just 3.5% from Monday's close. "We expect the Nifty to trade in the range of 17-20x one-year forward earnings... we raise the target valuation multiple from 18.5x earlier to factor in the drop in yields, assuming no material increase in risk premium," Nomura said in a strategy report. The brokerage also sees foreign investors supporting the Indian market in case of a stable risk environment. "Assuming a valuation range of 17-20x, we expect market return of -9% to +7% over the next one year," the report said.

Tapse of Mehta Equities, however, did not agree with the target. "I am more bullish on the Nifty 50... by December end, the index may rise to near its all-time high or even surpass it," he said. The Nifty 50 is nearly 9% down from its all-time high of 26277.35 points, which it had notched in September amid the bull run.

On the earnings front, HCL Technologies will report its results for the March quarter Tuesday. The company is likely to report muted topline growth, a decline in operating margin, and a fall in net profit for the quarter on a sequential basis. HCL Tech is likely to report a consolidated net profit of INR 43.52 billion for the March quarter, down 5.2% sequentially, according to an average of estimates by 20 brokerages. Its consolidated revenue is seen rising a meagre 1.3% to INR 302.66 billion. Havells India, AU Small Finance Bank, Tata Communications, Waaree Energies, and Mahindra & Mahindra Financial Services will also report their Jan-Mar earnings Tuesday.

On the tariffs front, investors would eye developments in the trade talks between the US and India after Finance Minister Nirmala Sitharaman Monday said she is hopeful of a trade deal with the US in the coming months, CNBC-TV 18 reported. Sitharaman is currently on a five-day visit to the US. On the other hand, US Vice President JD Vance began his four-day visit to India on Monday.  End

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.