In Short
- Sensex and Nifty surged over 1.5% led by banking stocks
- Experts recommend selective stock picking in large-cap stocks
- RBI policy meeting expected to influence banking stocks
As global markets recovered from losses in the previous day and climbed in the afternoon session on Tuesday, Dalal Street witnessed a robust recovery.
Due to increases in banking and financial sectors, the key indices, the Sensex and Nifty, both closed more than 1.5% higher. The NSE Nifty50 increased 378.20 points to conclude at 23,739.25, while the S&P BSE Sensex surged 1,397.07 points to close at 78,583.81.
Market analysts predict that the Nifty’s next goal range is between 23,900 and 24,200. Tuesday’s recovery was mostly driven by the banking industry, and analysts predict that the market’s momentum will be determined by how the banking index performs until it breaks beyond the 50,200 barrier.
“Given the current market conditions, we continue to focus on selective stock picking, with a preference for large-cap and large mid-cap stocks,” stated Ajit Mishra, SVP-Research at Religare Broking Limited.
A buy-on-dips approach is still the best option, according to Rajesh Bhosale, Technical Analyst at Angel One Ltd., because it has worked well in recent sessions.
“The bullish gap near 23,400 is a key demand zone, while the Budget Day high of 23,630 now acts as immediate support,” he continued.
He did, however, issue a warning that market volatility may result from prolonged trade conflicts and geopolitical concerns. Investor mood will also be impacted by domestic events like the Delhi state elections and the RBI’s Monetary Policy Committee (MPC) meeting.
Ahead of the RBI policy meeting, where analysts anticipate a rate drop, banking equities have been surging. This is an important event for investors because it will be the first policy meeting under the new RBI governor.
“Large-cap stocks are the preferred option, even though overall market sentiment is still positive,” stated Vinod Nair, Head of Research at Geojit Financial Services. In the meantime, banks stocks are rising in expectation of this week’s RBI policy rate cut.
Stocks To Watch Today
Due to important company developments and earnings announcements, a number of stocks will be the focus of today’s trading.
- Swiggy, Reliance Power, and Info Edge will be in focus as they are set to announce their quarterly results today.
- Titan reported a 0.6% drop in net profit for the third quarter, at Rs 1,047 crore. However, its total income grew 25% year-on-year to Rs 17,723 crore.
- Tata Power posted an 8% rise in consolidated net profit for the December quarter, reaching Rs 1,031 crore, compared to Rs 953 crore in the same period last year.
- Hero MotoCorp, Bandhan Bank, and Tata Power are also expected to be in focus due to various corporate updates.
DEFENCE STOCKS IN FOCUS
Defence stocks have been showing signs of recovery, driven by strong order books and rising exports.
“The defence industry continues to have strong earnings visibility,” stated Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. The defence budget has been raised by 10% from the previous year to Rs 11 lakh crore.
He emphasised that last year, Indian defence businesses sold goods valued at over Rs 21,000 crore, or almost $2 billion. These businesses have a clear earnings outlook despite their lofty prices. Defence stocks now appear appealing to long-term investors following a 20–30% decline from their top, he said.