Robust foreign inflows and strong earnings keep market sentiment resilient despite global headwinds
Indian stock markets continue with their cautious optimism. The BSE Sensex is trading at 80,278.30, which denotes a small gain of 59.93 points or 0.07%. NSE Nifty 50 also moves a bit up to 24,342.70 with 14.20 points or 0.06%. Markets open on a positive note; strong global cues and healthy foreign institutional investment inflows underpin such optimism, while geopolitical developments and domestic sectoral pressures keep introducing intermittent volatility.
Market Overview
Inaugurating today’s session with all major indices at the positive side. Global stock rallies, especially that of the US and Asian markets, have served as the impetus for this. Positive macroeconomic indicators in the country, such as sustained industrial output and a stable inflation rate, would provide bulls with further confidence.
The broader market outperformed the frontline indices. Nifty Midcap 100 increased by 0.5%, while the Nifty Smallcap 100 gained 0.8%, indicating strong investor interest outside the large-cap universe. The mid- and small-cap sentiments continue to strengthen in anticipation of better earnings growth and consistent retail participation.
But investors are also looking at the ongoing geopolitical issues in Eastern Europe and the Middle East, which could potentially affect global energy prices and risk appetite.
Sectoral Performance
The sectoral indices tell a mixed tale. In Public Sector Banks (PSU Banks): The Nifty PSU Bank index sticks out as the most active gainer among sectoral indices, rising 1.6% after the latest liquidity-augmenting measures announced by the Reserve Bank of India which boosts lending sentiment among state-run banks. Major gainers in this list include stocks such as State Bank of India, Bank of Baroda, and Punjab National Bank.
Oil & Gas, Realty, Consumer Durables: All these are seeing steady buying. Realty stocks gaining from the improved demand for the residential and commercial segments do find renewed interest among investors in oil and gas companies due to the stabilizing crude oil prices.
Pharmaceuticals: The Nifty Pharma index came into the slump with a decline of 1.22%. Heavyweights such as Dr. Reddy’s Laboratories and Sun Pharma were in the lead of the decline. Pressure on margins and regulatory action in international markets hang over the sentiment on this sector.
Fast Moving Consumer Goods (FMCG): The FMCG is selling. As volume growth in rural markets does not seem rosy and profit booking in large-cap stocks such as Nestle India and Hindustan Unilever has begun, it shows a selling trend.
Key Stock Movements
Bharat Electronics Limited (BEL): Thus, Bharat Electronics rallied 3.92%, courtesy of excellent quarterly results and orders from defense contracts. Continued indigenous manufacturing by the company under the government’s ‘Make in India’ initiative is a plus for investors.
IndusInd Bank: IndusInd Bank Stock rises by 2.5% as the bank commences with better than expected growth in net profit and improvements in asset quality. Strong advances in its retail loan book and declining non-performing assets (NPAs) strengthen the outlook.
Dr. Reddy’s Laboratories: The pharmaceutical major sees its shares fall by 1.56% after its latest quarterly earnings miss street estimates. Higher raw material costs and pricing pressure in the US market contribute to the underwhelming performance.
Nestle India: The FMCG giant’s stock declines as concerns mount about slowing consumption growth in tier-2 and tier-3 cities, exacerbated by inflationary pressures impacting consumer spending.
Foreign Institutional Investment
Foreign institutional investors (FIIs) continue to inject liquidity into Indian equities, with net purchases totaling around $91 million for April 29. This consistent buying activity supports overall market resilience and reflects confidence in India’s long-term economic growth prospects.
Cumulatively, foreign portfolio investments over the past few months have added approximately $489 billion to India’s total market capitalization, underlining India’s position as a favored investment destination among emerging markets.
Analysts attribute this renewed FII interest to India’s relative macroeconomic stability, ongoing structural reforms, and robust corporate earnings.
Economic Indicators
Indian Rupee: The rupee trades weaker at 85.08 against the US dollar, influenced by a combination of higher global crude oil prices and persistent demand for the greenback among oil importers. Currency market participants closely monitor geopolitical developments, given their potential to introduce further volatility.
Crude Oil Prices: Brent crude oil prices stabilize near $89 per barrel, offering relief to the Indian economy, which remains heavily reliant on imported oil. A sharp jump in crude prices would typically pressure the current account deficit and the rupee; thus, stability in oil markets is welcomed by equity investors.
Bond Yields: Indian government bond yields remain range-bound, reflecting market expectations that the Reserve Bank of India may maintain a neutral monetary policy stance for the near future.
Corporate Developments
PNB Housing Finance: Shares of PNB Housing Finance surge nearly 10% after the company reports a 25% year-on-year rise in its net profit for the March quarter. Robust loan disbursements, a decline in non-performing assets, and improved cost efficiencies boost investor sentiment.
Tata Technologies: Shares of Tata Technologies decline by around 5%, primarily due to a large block deal executed earlier in the day. Profit-booking by institutional investors leads to the stock’s underperformance, although the company’s long-term fundamentals remain intact.
Ather Energy IPO: Ather Energy, one of India’s leading electric scooter manufacturers, garners significant attention ahead of its IPO. Market participants expect strong subscription numbers driven by rising demand for electric vehicles and favorable government policies.
Market Sentiment and Outlook
Despite the minor fluctuations and sectoral pressures observed today, the underlying sentiment in the Indian stock market remains broadly positive. Continued strength in domestic consumption, policy support from the government, and sustained foreign investment inflows create a favorable backdrop for equities.
However, market watchers maintain caution as valuations remain elevated in certain pockets. Attention shifts towards the US Federal Reserve’s upcoming meeting, key domestic macro data releases, and corporate earnings reports, which could influence near-term market direction.
April 29, 2025, stands as another day where the Indian stock market balances optimism with prudence. With strong foreign inflows and encouraging corporate earnings announcements, the Indian equity market continues to offer resilience, even as global uncertainties loom in the background.
