Updated May 2nd 2025, 09:37 IST
After a brief break on May 1 for Maharashtra Day, Indian stock markets reopened today with cautious optimism. This marks the first trading session for May 2025, as investors weigh a complex mix of Q4 earnings, global economic signals, and fresh geopolitical concerns between India and Pakistan.
April ended on a subdued note, with the BSE Sensex slipping 190 points to 80,097.29 and the NSE Nifty declining 38.55 points to 24,297.40, as rising tensions in the subcontinent dampened investor sentiment.
The caution is expected to carry over into today’s session as over 30 companies are set to announce their Q4 results, making it a crucial day for stock-specific action.
April’s Rally Sets the Tone — But Will it Hold?
The Indian markets had a robust run in April, with the Nifty gaining 3.5% over the month. This bullish streak was largely underpinned by a combination of foreign institutional investment, cooling crude oil prices, and a strengthening rupee.
“FIIs have infused nearly Rs 37,500 crore over the last 10 sessions, lending strong support to the ongoing uptrend,” said Sugandha Sachdeva, Founder of SS WealthStreet. She further noted that crude oil prices fell over 18% in April, easing inflationary concerns and bolstering macroeconomic confidence. The Indian rupee also appreciated by 1.2%, marking two consecutive months of gains.
Technical Outlook: Nifty Prediction Today Suggests Range-Bound Action
Despite these tailwinds, experts caution that the market may be entering a near-term consolidation phase.
“While the broader trend remains positive, the Nifty is facing stiff resistance in the 24,350–24,400 zone. A sustained breakout above this range is essential to trigger the next leg of the rally, potentially propelling the index toward 24,800 in the near term,” said Sachdeva.
According to Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, “On the daily charts, the Nifty is consolidating in the range of 23,900–24,500 for the last five sessions. It is likely to continue trading within this band in the short term. Minor pullbacks toward 24,200–24,100 should be considered buying opportunities. We maintain a positive stance with an upside target of 24,550.”
Global Cues and Domestic Earnings in Focus
One of the key global risks influencing investor behavior is the 0.3% contraction in the US economy in Q1 2025, as revealed in the advance GDP estimate. This downturn is being attributed to erratic trade policies and persistent inflationary pressures.
Markets are also keenly watching the March US payrolls report, which could influence global risk appetite and investor positioning across emerging markets like India.
Meanwhile, domestically, Q4 earnings from over a dozen companies today will play a critical role in shaping the near-term direction of the benchmark indices. The results will clarify sectoral strength and margin trends across corporate India.
Sectoral Trends: Realty Shines Amid Broader Weakness
In Tuesday’s session on April 30, Nifty Realty stood out as the top sectoral gainer, jumping 2% even as broader indices remained under pressure. The Nifty Media and PSU Bank indices both slipped by 2%, while the BSE Midcap and Smallcap indices declined by 0.5% and 1.4%, respectively — reflecting nervousness among retail participants.
Among Nifty 50 constituents, Maruti Suzuki , HDFC Life, Bharti Airtel, SBI Life Insurance, and Power Grid Corp emerged as top gainers. On the downside, Bajaj Finserv, Bajaj Finance, Trent, Tata Motors, and SBI were among the worst performers.
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Geopolitical Tensions May Weigh on Sentiment
Another key risk overshadowing the markets is the escalation of India-Pakistan tensions following a deadly attack in Indian-administered Kashmir, which left 26 people dead. With Prime Minister Narendra Modi reportedly giving military chiefs the “freedom to act”, the possibility of further military action has raised investor concern over regional stability.
Nifty Prediction Today Hinges on Breakout or Breakdown
In summary, while India’s macroeconomic fundamentals remain sound, supported by FII inflows, strong rupee performance, and easing oil prices, markets are likely to remain range-bound in the short term. The key to unlocking the next leg of the rally lies in whether Nifty can decisively break above the 24,400 level.
Published May 2nd 2025, 08:01 IST