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Informist, Monday, May 12, 2025

By Akash Mandal

MUMBAI – The benchmark indices are likely to continue their upward trajectory Tuesday as the bulls seem to have the upper hand in the short term, analysts said. With uncertainty subsiding following positive developments in the India-Pakistan conflict and on the US tariffs front, a potential rally could take the Nifty 50 above 25000 points in the near term, they said.

"Most of the negatives seem to be behind us and bulls may have upper hand in short term," Sunny Agrawal, head of research at SBICAPS Securities, said. Agrawal believes that instead of looking at sectors, the market will look at "bottom-up growth stories", which means there will be buying interest in specific stocks only if fundamentals such as valuations and earnings growth are good.

Ajit Mishra, senior vice-president of technical research at Religare Broking, believes Monday's sharp gains will be sustained. "Despite the market gaining more than it had fallen in the last 2-3 sessions, it looks like the rally will last as the buying is broad-based instead of sectoral," Mishra said. After consolidating for around three weeks, the indices had a breakout Monday and the trend looks positive with all sectors participating in the rally, he said.

On Monday, the Nifty 50 closed at 24924.70 points, up 916.70 points or 3.8%, and the BSE Sensex ended at 82429.90 points, up 2975.43 points or 3.7%. Both indices ended at their highest levels in nearly seven months. The Nifty 50 closed just 50 points below the seven-month high of 24971.3 points hit on Oct. 16. For Tuesday, analysts have pegged the support for the 50-stock index at its erstwhile resistance of 24500 points, and the resistance at 25000-25200 points.

On the earnings front, investors will react to the March quarter results of Tata Steel, due later Monday. On Tuesday, four Nifty 50 companies--Bharti Airtel, Tata Motors, Cipla, and Hero MotoCorp--will report their March quarter earnings.

Bharti Airtel's top line in Jan-Mar is likely to have been hit by low like-for-like India mobile revenue growth. The telecommunications major's consolidated net profit is seen falling nearly 61% sequentially. However, in the December quarter, the company had reported a one-time gain of INR 75.5 billion from the consolidation of accounts of Indus Towers. The stock looks the strongest among telecom players and is likely to move between INR 1,760 and INR 1,900 this week.

Automobile majors Tata Motors and Hero MotoCorp are both expected to post revenue growth in the low single digit for the March quarter due to a decline in domestic wholesale despatches and low demand. Cipla's bottom line for the quarter is seen rising 10% on year. 

Investors will also eye the inflation data for April in the US, due Tuesday, as they continue to monitor the impact of reciprocal tariffs on consumer prices across the country. The data will provide cues to the future rate-cut trajectory of the US Federal Reserve.  End

Edited by Rajeev Pai

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