India Stocks Outlook
Seen in range Wed; sentiment bullish despite pullback
This story was originally published at 18:31 IST on 13 May 2025
Register to read our real-time news.Informist, Tuesday, May 13, 2025
By Akash Mandal
MUMBAI – Benchmark indices are likely to move in a narrow range Wednesday as the market cools off after sharp movements on either side in the past couple of sessions, analysts said. Sentiment remains positive in the short term due to de-escalation of tensions between India and Pakistan and a trade deal between the US and China, they said. Analysts also expect corporate earnings to influence market direction after the conflict between India and Pakistan has cooled off, at least for the time being.
The pullback Tuesday is temporary and the market is expected to remain range-bound Wednesday, Hardik Matalia, technical and derivatives analyst at Choice Broking said. While the technical charts show the Nifty 50 may take another week to surpass 25000 points, Matalia was unsure regarding the timeline for the index to reach the level due to the persistent volatility in the market.
Rupak De, senior technical analyst at LKP Securities, expects sentiment to remain positive in the near term. "The index continues to trade above the short-term moving average, confirming a bullish trend," De said in a note. "Additionally, it has been sustaining above the previous consolidation zone. In the short term, the index may continue its upward movement with the potential to reach 25350," he said.
On Tuesday, the Nifty 50 ended at 24578.35 points, down 346.35 points, or 1.4%, and the BSE Sensex closed at 81148.22 points, down 1281.68 points, or 1.6%. Indices had fallen 1.5% Tuesday, but recovered to close off lows. For Wednesday, analysts pegged the support for the Nifty 50 at 24500 points and the resistance at 24800-25200 points.
However, Kotak Institutional Equities was not as bullish on the Indian market for the near term. While the market may see a modest rally due to the de-escalation of tensions between India and Pakistan, the market has looked past factors such as potential for escalation in tensions again, muted March quarter earnings, and valuations that still continue to be expensive, Kotak said in a report "All is well (just don't look at earnings and valuations)."
On the earnings front, investors will react to the March quarter earnings of Tata Motors, declared Tuesday. While the company's bottom line for the quarter beat the Street's view by a wide margin, it more than halved on year. Its consolidated earnings before interest, taxes, depreciation, and amortisation margin fell 60 basis points on year to 14%. The market will also look at the numbers that Bharti Airtel will report for the March quarter later Tuesday.
On Wednesday, Eicher Motors is the only Nifty 50 constituent that will report its quarterly earnings. The company's consolidated net profit for the March quarter is seen rising 14% on year, driven by high demand for Royal Enfield motorcycles both in India and internationally. The stock looks negative on the technical charts and is likely to move in a range of INR 5,380-INR 5,500 Wednesday, Matalia of Choice Broking said. The stock has fallen nearly 2% in the past five sessions in the run-up to its earnings. Tuesday, shares of the company closed 1.8% lower at INR 5,419 on the National Stock Exchange. Shree Cement, Tata Power Co., Torrent Power, Apollo Tyres, Muthoot Finance, and Lupin are among the other major companies scheduled to announce their earnings Wednesday.
Investors will also react to the inflation data for April in the US, due later Tuesday, as they continue to monitor the impact of reciprocal tariffs on consumer prices. The data will provide cues to the future rate-cut trajectory of the US Federal Reserve. India's CPI came in at 3.16% for April, slightly lower than the 3.2% expected in an Informist poll. End
Edited by Deepshikha Bhardwaj
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