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Informist, Thursday, May 29, 2025

By Akash Mandal

MUMBAI – Benchmark indices surged in the last half hour of Thursday's session to end higher after consolidating for most of the day. The late rise was due to investors covering some short positions ahead of the monthly expiry of the derivatives contract of the Nifty 50, analysts said.

The 50-stock index ended at 24833.60 points, up 81.15 points, or 0.3%. Heavyweights such as HDFC Bank, ICICI Bank, and ITC ended higher and led the Nifty 50's late rise after trading lower for most of the session. The Nifty 50 moved in a range of 215 points compared to 130 points Wednesday. Volumes were lower during the session with over 345 million shares changing hands on the NSE on Thursday, much lower than the 684 million shares on Wednesday and 525 million shares Tuesday.

Some analysts expect the Nifty 50 to re-test the 25000 level when the volatility in the market subsides. India VIX, which indicates the volatility in the market, fell nearly 9% to close at a near one-month low of 16.42. The BSE Sensex closed at 81633.02 points, up 320.70 points or 0.4%.

Information technology stocks gained after a US Federal court criticised the reciprocal tariffs proposed by the Donald Trump-led administration on several countries. The court said President Trump had exceeded the authority granted to him. This came as a relief to the sector amid fears of a rise in inflation in the US and a slowdown in economic growth, which would affect the spending power of their US-based clients. The Nifty IT had risen nearly 2% to its intraday high but came off highs to end nearly 1% higher. Coforge, Persistent Systems, and Mphasis ended 1-2% lower.

Metal stocks were the other big gainers of the day after Jefferies said it is positive on Indian steel companies and sees volumes in the industry growing at a compounded annual growth rate of 8-10% over the next two financial years. The brokerage said the recently imposed safeguard duty, low Asian conversion spreads, and sustainable valuations are positives for the sector.

The brokerage upgraded JSW Steel to 'buy' from 'hold' and raised its target price on the stock by 30% to INR 1,200. It downgraded Hindalco Industries to 'hold' from 'buy' and cut its target price to INR 690 on expectations of muted earnings growth and rising debt levels weighing on its performance over FY25–FY27. Both stocks were relatively unaffected by the development. The Nifty Metal gained over 1%. Lloyds Metals and Energy, Jindal Stainless, and Hindustan Zinc ended 3-4% higher. Welspun Corp soared 10% and was the top gainer in the index after its bottom line for the quarter nearly tripled on year. 

Shares of real estate companies such as Prestige Estates Projects and DLF ended around 3% higher each after Morgan Stanley upgraded its rating for both the companies. The foreign brokerage upgraded DLF's rating to 'overweight' from 'equal-weight' on attractive valuations but cut the target price by 1% to INR 900. The brokerage upgraded its rating on DLF to 'overweight' from 'equal-weight' and raised the price target to INR 1,700 from INR 1,370 as its sees the company's FY26 pre-sales recovering.

On the other hand, the Nifty FMCG was the worst hit among sectoral indices. Industrial production in April had fallen on month, with concerns such as weak domestic consumption and slow growth in household income weighing on growth. Stocks in the sector have been weak for some time due to slow urban demand and low discretionary spending. United Breweries, Godrej Consumer Products, and Tata Consumer Products ended 1-3% lower.

Stock-specific movement seen in recent times continued as many shares reacted to their March quarter earnings and the outlook for FY26. Cummins India ended nearly 7% higher after its management was cautiously optimistic on earnings growth despite challenging macroeconomic conditions. The company said it expects its revenue to grow in double digits in FY26 due to strong demand across various sectors. Its bottom line for the March quarter also narrowly beat the Street's view.

MMTC soared 20% to its intraday high but eventually closed 12% higher despite its bottom line nosediving in the March quarter. Other public sector trading companies such as MSTC and State Trading Corp. of India also ended 4% and 3% higher, respectively. ITI soared for the second session after its losses for the reporting quarter narrowed sequentially. The stock has ended higher in 12 of the last 14 sessions and has skyrocketed over 51% in that period. Castrol India ended nearly 6% higher after media reports said Reliance Industries and Aramco may be looking to acquire the company, which is owned by BP.

JSW Holdings fell 4% after its bottom line for the quarter fell 2% on year. Olectra Greentech ended 4% lower and fell for the third straight session after media reports Tuesday said the Maharashtra State Road Transport Corp. allegedly cancelled a tender won by the company for the supply of 5,150 electric buses. Cohance Lifesciences ended 4% lower after its consolidated net profit fell 21% in the reporting quarter.

Shares of Belrise Industries made its debut on the bourses Wednesday. The stock ended at INR 97.41 on the National Stock Exchange, down nearly 3% from its listing price of INR 100 but up over 8% from its issue price of INR 90.

* Of the Nifty 50 stocks, 36 rose, 13 fell, and 1 was unchanged 

* Of the Sensex stocks, 24 rose and 6 fell

* On the NSE, 1,510 stocks rose, 1,373 fell, and 64 were unchanged

* On the BSE, 2,020 stocks rose, 1,957 fell, and 134 were unchanged

* Nifty Metal: up 1.2%; Nifty Realty: up 1.1%; Nifty PSU Bank: down 0.2%

BSE                                               NSE

Sensex: 81633.02, up 320.70 points or 0.4%        Nifty 50: 24833.60, up 81.15 points or 0.3%

End

Edited by Tanima Banerjee

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