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Informist, Monday, Jul. 28, 2025

By Gopika Balasubramanium

MUMBAI – Benchmark equity indices are expected to extend their losses for the fourth consecutive session on Tuesday due to weak market sentiment as June-quarter earnings continue to disappoint, analysts said. The absence of a trade deal with the US, even as the Aug. 1 deadline neared, has further dampened the mood. The sell-off of Indian equities by foreign investors also added to the bearish sentiment in the market, analysts said. Investors will also focus on the June quarter earnings of Larsen & Toubro, Asian Paints, and NTPC, due on Tuesday. 

" ... weak quarterly numbers by the majority of large caps are a big cause of concern," said Vipin Kumar, assistant vice-president of derivatives and technical at Globe Capital Market. "... it (Nifty 50) is likely to come down to 24400 spot levels in the near-term, we suggest maintaining a sell on rise trading approach," Kumar said. Selling by foreign investors in domestic stocks and futures is also putting downward pressure on the Nifty 50, with the long-short ratio of foreign investors at around 15%. 
 

On Monday, the Nifty 50 closed at 24680.90 points, down 156.10 points or 0.6%. The BSE Sensex closed at 80891.02 points, down 572.07 points or 0.7%. Both indices closed near their two-month lows. Technical analysts expect the 50-stock index to find support at 24550-24450 points and encounter resistance at 24800-25000 points. 

"Markets are currently grappling with headwinds on both domestic and global fronts," said Ajit Mishra, senior vice president – technical research, at Religare Broking. "On the domestic side, earnings disappointments and persistent foreign fund outflows are dampening sentiment." In the banking sector, earlier resilience had helped limit the decline. However, renewed pressure across the sector, except for heavyweights such as ICICI Bank and HDFC Bank, is adding to concerns. "Globally, uncertainty surrounding trade deals,... is contributing to the cautious approach," Mishra said. 
 

On the earnings front, L&T is likely to report robust numbers, driven by orders from overseas clients and government contracts, even as capital expenditure from the private sector has slowed. The stock is expected to move between INR 3350 and INR 3320 on the lower side and INR 3520 and INR 3550 on the upper side. Asian Paints will likely report weak results in the June quarter as it grapples with a combination of tepid demand and heightened competitive pressures. The stock is likely to trade with a positive bias but is expected to remain within a range of INR 2,250 to INR 2,500. State-owned NTPC is expected to report a low single-digit decline in its revenue for the quarter, owing to weak power generation. The stock is expected to find support at INR 325-320 and resistance at INR 345.  End 
 

Edited by Saji George Titus

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