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Informist, Wednesday, May 14, 2025

By Akash Mandal

MUMBAI – The Nifty 50 is likely to move in a range of 24600-24800 points Thursday as market cools off after the 4% jump on Monday. There might be some buying interest at lower levels as seen on Wednesday, analysts said. Corporate earnings will continue to determine the market direction, they said.

"Overall the market seems sideways for the rest of the week," Jigar Patel, senior manager of equity research at Anand Rathi Shares & Stock Brokers, said. If the Nifty 50 closes above the 24800 level for the week, it may test the 25200 level next week, Patel said. If the index fails to do so, it will continue to move within the 24800-24300 range next week, he said. Patel is positive on the index as it has managed to stay above 24600 points despite dropping below the level for a brief period Wednesday.

On Wednesday, the Nifty 50 ended at 24666.90 points, up 88.55 points or 0.4%, and the BSE Sensex ended at 81330.56 points, up 182.34 points or 0.2%. Despite dipping into the red a couple of times during the session, indices managed to end the session with gains on buying interest at lower levels. For Thursday, analysts peg support for the Nifty 50 at 24600 points and resistance at 24750-24800 points.

"While foreign fund flows in the domestic market will be critical going ahead, investors are worried that US-China settling tariff disputes could revive foreign investors' interest in Chinese markets again," Prashanth Tapse, senior vice president of research at Mehta Equities, said in a note. Foreign investors have net sold Indian equities in two of the last three sessions, after being net buyers for 16 straight sessions prior to that.

JM Financial has an overweight stance on sectors such as banking, real estate, telecommunications, infrastructure, and defence, according to its strategy report. The brokerage said a pickup in capital expenditure, rise in rural consumption, and favourable weather conditions should support the economy, which will be positive for the market. "We believe the capex allocation of INR 11.2 trln (trillion) for FY26 is substantial and should drive growth in the upcoming fiscal," the brokerage said.

The brokerage firm also said that current stock valuations are still not cheap. "Large, mid and small cap indices are all trading 1 sd (standard deviation) or more above the mean, which implies that valuations are not cheap," the brokerage said. The brokerage said on the basis of the absolute price-to-earnings ratios for 2025-26 (Apr-Mar), mid-caps are currently the most expensive, followed by small-caps, while large-caps are the cheapest.

None of the Nifty 50 constituents are scheduled to announce March quarter earnings Thursday. JSW Energy is the only Nifty 200 company that will report its quarterly results Thursday. The company's bottom line is likely to decline 28% on year to INR 2.54 billion while the top line is expected to rise 14% to INR 31.41 billion. The stock is likely to in a range of INR 450-500 on Thursday, Patel said. On Wednesday, the stock ended 0.2% higher at INR 474.95 on the National Stock Exchange. Cochin Shipyard, Patanjali Foods, LIC Housing Finance, PB Fintech, Tube Investments of India, and Page Industries are some other major companies that will report March quarter earnings Thursday.   End

Edited by Ashish Shirke

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