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Informist, Thursday, May 29, 2025

By Akash Mandal

MUMBAI – Benchmark indices are expected to continue consolidating Friday amid lack of fresh triggers for the market, analysts said. However, some believe that the Nifty 50 may re-test the 25000 level soon as the volatility seen in the market in the past few sessions seemingly subsided on Thursday. India VIX, which indicates the volatility in the market, closed 9% lower at an over one-month low Thursday. The market will also eye the US unemployment data for the week ended May 24, due later Thursday, which will provide cues regarding the US job market and health of the economy.

"There are no triggers currently domestically...the markets are expected to remain rangebound," said Ajit Mishra, senior vice president of technical research at Religare Broking. Mishra expects the next trigger for the market to be driven by liquidity. "The recent rally was driven by the cash injection by FIIs...the next big breakout for the market would likely also be liquidity driven," he said.

Speaking on valuations after the recent 4% rally over the past two weeks, Mishra said the market is selectively rewarding some sections of the market based on positive earnings or specific news. Sectors such as banking, cement, and life insurance look cheap currently, while those such as information technology and pharmaceuticals still look relatively more expensive, Mishra said.

Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates, also believes the market will remain range-bound Friday. "Technically, the Nifty index formed a doji candle on the daily chart, indicating uncertainty. Moreover, it continues to trade above its 21-Day Exponential Moving Average (21-DEMA), which is positioned near 24,600...as long as the index holds above this level, the probability of a pullback move remains intact," Yedve said.

On Thursday, the Nifty 50 ended at 24833.60 points, up 81.15 points or 0.3%, and the BSE Sensex closed at 81633.02 points, up 320.70 points or 0.4%. On Friday, analysts expect the Nifty 50 to move in a range of 24700-25000 points.

Investors will continue to monitor the flow of funds from foreign investors as easing trade tensions between the US and its key trading partners might tempt FIIs to shift back to the US or to other emerging markets such as China, analysts said. However, some analysts believe Indian equities will continue to be attractive due to India's higher GDP growth rate, stable macroeconomic conditions, and greater returns from equities.

Investors await the March quarter earnings of Bajaj Auto due later in the day. On Friday, Apollo Hospitals Enterprise will detail its March quarter earnings. The hospital chain is expected to report a 43% rise in its bottom line for the March quarter due to continued growth in the hospitals and pharmacy businesses. Its revenues are seen rising 13% on the back of improved average revenue per occupied bed and a rise in in-patient volumes. Bajaj Holdings & Investment, FSN E-Commerce Ventures, and Vodafone India will also report their quarterly earnings during the day.  End

Edited by Akul Nishant Akhoury

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