CHENNAI: The Indian stock markets are expected to see the indices in the red on Thursday (May 22), at least in the opening trade. GIFT Nifty futures indicate a gap-down start with the Nifty50 likely to move lower, reflecting weak global cues, macro concerns, and mixed Q4 earnings.
Key Drivers for Today's Market Sentiment
Weak global cues and GIFT NIFTY down 60 pts hint at cautious sentiment. Over 150 companies will announce Q4 results today, keeping earnings in focus. Mixed earnings from large caps and mid-caps may lead to sectoral divergence.
Key earnings to watch today include ITC, Sun Pharma, Grasim, Emcure, Container Corp, GMR, MTAR, Honasa, Deepak Fertilisers.
However, volatility may spike due to reaction to earnings and macro headwinds.
Other Stocks in Focus Today
IndusInd Bank, mainly due to Q4 FY25 net loss of ₹2,328.9 crore as against a profit last year. Other major concerns about the stock are over accounting lapses, microfinance fraud, forensic audit, and top management exits. So analysts expect a likely sharp sell-off.
RVNL could also face a cautious watch due lowered Q4 net profit and revenue. This stock may face mild selling unless new order wins or guidance supports price.
Indigo promoter InterGlobe Aviation could be a positive pick as it recorded Q4 profit of ₹3,067.5 crore, up 62% year-on-year. It has also announced dividend of ₹10/share and strong operational growth.
Refex Renewables is another stock to watch as its losses narrowed year-on-year. But, the withdrawal of its Rs 160 crore rights issue may dent investor sentiment.
Oil India's Q4 profit was down 21% compared to the year ago period due to soft crude & gas prices. Despite production growth, price realisation pressures remain.
NALCO and Indian hotels are the other two stocks with a strong positive sentiments.
Key Economic & Sectoral Themes
Public sector metal stocks may see buying after NALCO's strong earnings. Private Banks (especially mid-tier) may see broad pressure post IndusInd results. Aviation and travel sector to benefit from IndiGo’s performance.
However, cautious moves are expected in pharma and FMCG ahead of results from Sun Pharma, ITC.