CHENNAI: Indian stock markets open with a cautiously optimistic tone, as futures on the GIFT Nifty indicate a positive bias, trading higher at 24,682 earlier in the day. Market participants will closely track a slew of quarter results (Q4FY25) of companies, foreign institutional investor (FII) flows, bond yield movements, and global macroeconomic cues—especially US Treasury yields, which have been pivotal in shaping risk sentiment.
Key Market Drivers Today:
A large batch of companies, spanning sectors from infrastructure to pharmaceuticals and consumer goods, will announce their quarterly results.
Notables include JSW Steel, Ashok Leyland, Glenmark Pharma, and Reliance Infrastructure.
Positive surprises could propel sectoral indices higher, particularly in metals, engineering, and pharmaceuticals.
Recent Result Highlights:
ITC reported a strong consolidated net profit of ₹19,727 crore in Q4FY25, bolstered by one-time exceptional gains. Adjusted profit rose 3% Year-on-Year (YoY), with revenue stable at ₹20,376 crore. The company also proposed a ₹7.85/share dividend, indicating confidence in cash flow stability.
Sun Pharmaceuticals missed profit estimates, with net profit down 19% YoY at ₹2,154 crore despite an 8% revenue increase and improved EBITDA margins (28.7% vs 25.3% YoY). The earnings miss may weigh on pharma stocks and related indices today.
Foreign Institutional Investor (FII) Activity:
FIIs remain key market movers. Recent weeks have seen mixed flows influenced by US interest rate decisions and geopolitical developments.
Continued buying by FIIs would provide support to Indian equities; any reversal or profit-taking might trigger volatility.
Bond Yield Movement:
Indian government bond yields are an essential barometer of domestic liquidity and inflation expectations.
Stable or declining bond yields tend to support equities by reducing discount rates, while rising yields could pressure market valuations, especially for growth-oriented sectors.
Global Cues:
US Treasury yields remain critical, as they influence global capital flows and risk appetite.
Currently, a mild easing in yields globally can support risk assets, including Indian equities.
Other global markets are steady but cautious ahead of upcoming US economic data releases and geopolitical developments.
Stocks to Watch:
Other companies which will announce their Q4 results today include
Aditya Birla Fashion & Retail, Afcons Infrastructure, AIA Engineering, Anupam Rasayan India, Apollo Micro Systems, Ashoka Buildcon, Ashok Leyland, Azad Engineering, Balkrishna Industries, BEML, Cello World, Devyani International, Dreamfolks Services, Finolex Industries, Fusion Finance, Glenmark Pharmaceuticals, Gujarat Narmada Valley Fertilizers & Chemicals, GE Vernova T&D India, JSW Steel, Jtekt India, Linde India, Lux Industries, Narayana Hrudayalaya, PSP Projects, Ramco Industries, Reliance Infrastructure, Timken India, West Coast Paper Mills.
Focus on Sectoral Impact:
Metals & Engineering: JSW Steel, Ashok Leyland, Balkrishna Industries
Pharma & Healthcare: Glenmark Pharmaceuticals, Sun Pharma (watch for reaction post-earnings miss)
Consumer Goods & Retail: ITC, Aditya Birla Fashion & Retail, Lux Industries
Infrastructure & Construction: Afcons Infrastructure, Ashoka Buildcon, Reliance Infrastructure
Technical Outlook:
The positive gap-up indicated by GIFT Nifty Futures suggests a possible continuation of the recent uptrend, provided global and domestic cues remain favorable.
Key support levels are near 24,500 on the Nifty, while immediate resistance is expected around 24,750-24,800.
Traders should watch bond yields and FII activity intraday for directional cues.
Market Sentiment:
Positive factors: Strong corporate earnings in some segments (ITC), improved EBITDA margins (Sun Pharma), and stable futures hint at a cautiously positive start.
Risks: Earnings misses (Sun Pharma), possible profit-taking by foreign investors, rising bond yields, and external geopolitical risks.
Overall: The market mood is balanced but tilted towards cautious optimism, with investors advised to track Q4 results closely and monitor FII flows alongside global treasury yields.