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Informist, Monday, Apr. 28, 2025

By Akash Mandal

MUMBAI – Benchmark equity indices may continue to rise more Tuesday as sentiment remains positive for the short term with no major negative surprises from corporate earnings so far for the March quarter, analysts said. While the sentiment is bullish, investors may book profits at higher levels during this week. Investors also will wait for earnings of four companies which are part of the Nifty 50 index, scheduled for Tuesday. They will continue to monitor updates with respect to the conflict between India and Pakistan, which had recently shook the domestic market. 

"The market looks strong and sentiment is bullish...until the Nifty (Nifty 50) falls below 23900 (points), sentiment will remain positive," Nandish Shah, senior derivative analyst at HDFC Securities, said. Gains may also be capped slightly due to a holiday-shortened weekend, he said. The equity market will be shut Thursday for Maharashtra Day. 

On Monday, the Nifty 50 closed at 24328.50 points, up 289.15 points, or 1.2%, and the BSE Sensex closed at 80218.37 points, up 1005.84 points, or 1.3%. Analysts pegged the support for the 50-stock index at 23900-23800 points and resistance at 24400-24450. Broader market indices also ended higher. Small-cap indices ended slightly higher and mid-cap indices gained 1-2% each.

"With Indian equities witnessing sustained buying interest, we expect the gradual up-move in the market to continue with some volatility on the back of geo-political developments," Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services, said in a note. "Meanwhile, stock/sector specific action would continue on account of ongoing Q4 (Jan-Mar) earnings announcements," he said.

However, the market's gains in recent times may not be sustainable as key challenges such as global economic growth, US tariffs, and slowdown in domestic earnings growth persists, Kotak Institutional Equities said in a strategy report. "The recent rebound in the market reflects some degree of complacency and optimism in the market with respect to global growth and domestic earnings," Kotak said.

On the earnings front, Nifty 50 companies such as Bajaj Finance, Bajaj Finserv, Bharat Petroleum Corp., and Trent will release their March quarter earnings Tuesday. Bajaj Finance's net profit for the quarter is seen rising 16% on year to INR 44.49 billion on the back of a healthy on-year growth in loans and assets under management. However, a slight compression in the net interest margin due to lower yields on advances, may limit the growth in the company's bottom line. For Bajaj Finserv, no broking firms' earnings estimates were available with Informist.

BPCL is expected to deliver a weak quarterly earning, with its net profit expected to fall 37% on year to INR 26.26 billion due to a fall in refining margins and inventory losses. The company's lower margins during the quarter may be due to a volatility in crude oil prices, analysts had said in their earnings preview reports. Trent is also set for a poor March quarter, with its bottom line seen falling 48% on year to INR 3.4 billion, which would be due to factors such as moderation in same-store sales and operational deleverage, some broking firms said.  End

Edited by Deepshikha Bhardwaj

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