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Informist, Wednesday, Jul. 16, 2025

By Gopika Balasubramanium

MUMBAI – India's headline equity indices are likely to continue to move in a thin range on Thursday. Investors will continue to focus on the June quarter earnings, especially those of Axis Bank, Jio Financial Services, and Wipro. Analysts said that there are no fresh triggers for the market to react, although stock-specific reactions will continue to take centre stage due to the announcement of companies' quarterly earnings.

The Nifty 50 will likely open flat or marginally higher, Kshitija Salvi, technical analyst at IDBI Capital Markets & Securities. She expects the 50-stock index to move in a range and said it would face strong resistance at 25300 points. Salvi sees the Nifty 50 find support at 25000 points. Technical analysts said it is vital for the 50-stock index to hold 25000 points, as a breakout would cause a fall towards 24600 points. Banking and automobile stocks will likely see buying interest, Salvi said. 

Prabhudas Lilladher has valued the Nifty 50 index at a discount of 2.5% to the 15-year average price-to-earnings multiple at 18.5 times and has set a 12-month target of 26889 points. "We believe that domestic-oriented sectors like domestic pharma, select staples, banks, capital goods, defence, and power will outperform in the near term," the brokerage said in its India Strategy report Wednesday. 

Prabhudas Lilladher remains overweight in banks, healthcare, consumer, telecom, and capital goods, while it remains underweight in information technology, services, cement, metals, diverse financials, and oil and gas. The brokerage has removed Max Healthcare, Britannia Industries, Mahindra & Mahindra, Sun Pharmaceutical Industries, Rainbow Children's Medicare, Chalet Hotels, and Eris Lifesciences from its conviction picks for now. However, it remains positive on most of these names, but current stock prices are close to their target prices, leaving little room for an upside in the near term. The broking firm has added Apollo Hospitals Enterprise, Lupin Laboratories, and Samhi Hotels to its high-conviction picks.

On Wednesday, benchmark indices moved in a thin range and closed marginally higher. The Nifty 50 closed at 25212.05 points, up 16.25 points or 0.1%. The BSE Sensex closed at 82634.48 points, up 63.57 points or 0.1%. Broader market indices also closed largely flat. 

Information technology stocks are likely to take cues from Tech Mahindra's June quarter earnings. Post-market hours, the IT large-cap reported a consolidated net profit of INR 11.41 billion on revenues of INR 133.51 billion, missing the consensus estimates. The company won deals worth $809 million during the quarter. The company expects to receive strong orders during the Jul-Sept and Oct-Dec quarters, its management said in a post-earnings meeting. In the worst-case scenario, Salvi expects Tech Mahindra to fall up to INR 1,520. On the higher end, the stock is expected to move within a range of INR 1,620-1,670.   

Focus will also be on Wipro, which is scheduled to report its results for the Apr-Jun quarter on Thursday. Wipro's consolidated net profit for the quarter is expected to decline by almost 9% sequentially but increase by about 9% year-on-year. The company is expected to report a sequential decline of over 2% in consolidated revenue for the reporting quarter. The stock is expected to trade within a range of INR 253 to INR 267. 

Two other large-cap companies, Jio Financial Services and Axis Bank, will also disclose their results for the June quarter on Thursday. Axis Bank's bottom line is expected to see muted growth in the June quarter due to a contraction in net interest margin and elevated costs. The bank's net profit for Apr-Jun is expected to rise 5.8% year-on-year, but decline 10.3% sequentially. The net interest income of the bank is seen rising 2.8% on year, as per the average of estimates of 16 brokerages. The stock is expected to move in a range of INR 1,150 and INR 1,185. If the stocks break out of the immediate resistance, they are expected to rise until INR 1,200.

Jio Financial Services stock is expected to move between INR 317 and INR 323. End

US$1 = INR 85.94

Edited by Saji George Titus

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