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Informist, Wednesday, Apr. 30, 2025

By Akash Mandal

MUMBAI – Benchmark equity indices are likely to continue to move in a narrow range on Friday as the market cools off after a near 9% surge in indices over the past couple of weeks, analysts said. Markets will be closed on Thursday on account of Maharashtra Day. Stock-specific news and corporate earnings will keep playing a major role in deciding the direction taken by the market on Friday, analysts said.

Indices will continue to test their resistance levels as sentiment for the near term remains positive, Arju Jain, manager of treasury at Federal Bank, said. "We expect the market to trade in a range-bound manner with stock/sector-specific action, driven by Q4 earnings announcements," Jain said. For the last few sessions, the Nifty 50 has traded in a narrow range...it has to break out on the either side for significant movement, she said.

On Wednesday, the Nifty 50 ended at 24334.20 points, down 1.75 points, and the BSE Sensex closed at 80242.24 points, down 46.14 points. For Friday, analysts pegged support for the Nifty 50 at 24300-23800 and resistance at 24350-24460. "Technically, Nifty formed a doji candle on the daily chart, suggesting uncertainty at higher levels, with immediate resistance at 24460," Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates, said in a note.

Foreign investors, who have been net buying Indian equities for the past 10 sessions, will be further attacted to Indian markets after the rupee saw its sharpest single-day appreciation against the dollar since November 2022. "This surge can be attributed to month-end adjustments and a technical sell-off in the US dollar leading up to the holiday," Dilip Parmar, senior research analyst at HDFC Securities, said in a note. On Wednesday, the rupee gained 0.9% to end at a five-month high of 84.48 to the dollar. Foreign investors have bought Indian shares worth INR 373 billion over the past 11 sessions.

However, Pravin Bokade, head of equity research at IDBI Capital Markets & Securities, expects the rally seen over the past two weeks to peter out soon. "Earnings have not been as per expectations...we had expected to see some recovery this quarter," Bokade said. "Some companies and banks have done well...however, broadly if you look at the 250 odd companies that have announced their earnings so far, growth has not been good." Valuations in the market are currently comfortable, while not cheap. However, there has to be a revival in earnings for the market to rise sustainably, he said.

On the earnings front, Nifty 50 companies Adani Enterprises, Adani Ports and Special Economic Zone, and Eternal will report their earnings on Thursday despite the market being shut. Adani Port's net profit is expected to rise 37% on year in the March quarter due to geographical diversification and a rise in volumes. Analysts expect Eternal's consolidated net profit to fall 81% on year due to a rise in investments and operating expenditure in its quick-delivery business Blinkit. The company's top line is seen rising 65%. Godrej Properties, Indian Overseas Bank, and Marico will report their earnings for the March quarter on Friday.

Investors will also continue to monitor global economic data such as the US manufacturing purchasing managers' index for April, which will provide cues on the health of the manufacturing sector in the US amid concerns regarding tariffs and a potential slowdown of the US economy.  End

Edited by Avishek Dutta

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