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Informist, Thursday, Jan. 29, 2026

By Eshitva Prakash

MUMBAI – Benchmark equity indices are expected to be range-bound Thursday after the US Federal Open Market Committee decided to pause the rate-easing cycle and left the federal funds target rate range unchanged at 3.50-3.75%. However, the market sentiment remains cautious given weak global cues. 

Overnight, indices in the US closed mostly unchanged from the previous session. The S&P 500 closed flat, halting a five-session winning streak. Meanwhile, the technology stocks-laden Nasdaq Composite rose slightly and ended higher for the sixth straight session, boosted by gains in chip stocks. Investor reactions were muted after the US Federal Reserve ‌kept interest rates unchanged with an unclear outlook on the interest rate trajectory going ahead, Reuters reported. 

In a widely anticipated move, the US central bank decided to hold key rates amid geopolitical uncertainties and comments from US President Donald Trump demanding rate cuts from the US Federal Reserve. "Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate," the Federal Reserve committee statement read. However, the decision to pause the rate-cut cycle was not unanimous, as two US Fed officials, Stephen Miran and Christopher Waller, voted in favour of a 25-basis-point rate cut.

Domestic indices had gained Wednesday on the back of a rise in upstream oil stocks after Prime Minister Narendra Modi said India aims to raise investments in the oil and gas sector to $100 billion by 2030, with a target of expanding the scope of exploration to one million square kilometres. Additionally, ahead of the Union Budget scheduled on Feb. 1, analysts expect a rally in public sector companies. 

The Gift Nifty contract suggests a muted open for the Nifty 50 index Thursday and analysts have cautioned about market volatility ahead of the Budget. At 0826 IST, the GIFT Nifty's February contract was at 25381.50 points, almost 39 points higher than the Nifty 50's close of 25342.75 points on Wednesday. The BSE Sensex closed at 82344.68 points, up 487.20 points or 0.6%. The Nifty 50 is seen facing immediate resistance at 25450 points and finding support at 25100 points. 

Shares of Anil Ambani-owned Reliance Group companies will be in focus after the Enforcement Directorate attached assets worth INR 18.85 billion. The directorate has detected fraudulent diversion of public money by various Reliance Anil Ambani group companies, including Reliance Communications, Reliance Home Finance, Reliance Commercial Finance, Reliance Infrastructure and Reliance Power, according to a press release by the authority. The enforcement directorate had earlier attached properties worth over INR 10.12 billion in the bank fraud cases of Reliance Communications, Reliance Commercial Finance, and Reliance Home Finance, taking the cumulative group attachment to around INR 120 billion.  

On the earnings front, SBI Life Insurance Co. posted a 5% on-year rise in its net profit for the December quarter on the back of healthy growth in net premium income and a rise in income from investments on policyholders' accounts. Emkay Global Financial Services has raised the company's target price by 7% to INR 2,450 to factor in higher distributions and sustained performance. The brokerage has also raised the company's annual premium equivalent estimates by around 1% over 2025-26 (Apr-Mar) to FY28.

Engineering major Larsen & Toubro's net profit for the December quarter fell almost 4% on year to INR 32.15 billion, lower than analysts' estimates, owing to a one-time cost of INR 17.91 billion towards implementation of the new labour codes. Without this cost, the company's net profit would have been INR 50.06 billion, surpassing the Street view. Nuvama Institutional Equities has retained its buy rating on the stock on the back of a large project backlog and robust pipeline. It has raised its target price on the stock slightly to INR 4,850. Emkay Global has also raised its target by 9% to INR 4,800.  

Maruti Suzuki's net profit for the quarter rose 4% on year to INR 37.94 billion, missing analysts' estimates. The company's net profit was also weighed down by a one-time cost of INR 5.94 billion incurred because of the new labour laws implemented in November. Brokerage Nuvama has cut its target price on the stock by nearly 9% to INR 18,300. However, it is still positive on the company's performance and expects a healthy top-line performance for FY26–28. Emkay Global cut its target price on the stock 4.5% to INR 17,000.

Government-owned defence major Bharat Electronics' net profit for the reporting quarter rose nearly 21% on year to INR 15.90 billion, beating projections by analysts. "We believe the company's positive triggers outweigh the negatives, given its consistent track record of surpassing both internal guidance and Street's profitability expectation," Nuvama said in a research report. The brokerage has retained a 'buy' rating over strong order book visibility and cost efficiencies. 

However, brokerage Prabhudas Lilladher has downgraded its recommendation on the company to 'reduce' from 'hold', given the recent sharp run-up in the stock price, and cut its target price on the stock slightly. The brokerage however, has increased the company's FY27 and FY28 earnings per share estimate by 0.9% and 1.1%, respectively, factoring in a robust pipeline.

Foreign investors turned net buyers on Wednesday after selling for 15 straight sessions, buying INR 4.80 billion worth of equities in the Indian market. Domestic investors continued to support the market by buying INR 33.61 billion of equities. Analysts have previously flagged concerns about high valuations and persistent rupee depreciation as reasons for the persistent selling by foreign investors. On Wednesday, the rupee erased its early gains to end slightly lower against the dollar as banks bought dollars on behalf of importers and foreign portfolio investors. 

Market participants await the earnings of fast-moving consumer goods major ITC for the December quarter, scheduled later in the day.  End

US$1 = INR 91.7825

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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