The Indian stock market has displayed notable resilience throughout February 2025, with mixed performances across various indices and significant corporate earnings announcements shaping investor sentiments.
During the week ending February 7, 2025, both the benchmark Nifty-50 index and the S&P BSE Sensex managed marginal gains, with Nifty closing at 23,559.95 and Sensex at 77,860.19, marking increases of approximately 0.2% week-on-week. Particularly, the Bank Nifty has exhibited more strength, seeing gains of over 1% amid broader market fluctuations.
Experts attributed the week’s market movements to several key factors, including public sector undertakings (PSUs) releasing their quarterly results, upcoming major elections, and global developments. Major gainers included sectors like healthcare and automotive, whereas industrials and utilities faced downward pressure.
Vinod Nair, Head of Research at Geojit Financial Services, noted, "Experts estimate 50-100 basis points rate cut in 2025 after RBI's MPC stance." This signals the Reserve Bank of India's shift toward easing monetary policy to bolster economic growth amid continued inflationary pressures.
Market participants are particularly eager for next week’s earnings announcements from high-profile companies such as Nykaa, Hindustan Aeronautics Limited (HAL), and Vodafone Idea. Earnings reports from February 10 to 16 are expected to provide additional insights for investors contemplating their next moves.
One stock drawing interest is NHPC, which declined nearly 3% to ₹75.47 following its disappointing Q3 results. The PSU company reported steep declines, with net profit plummeting by 52.5% due to heightened expenses, even as its revenue rose 11.3% to ₹2,286.8 crore compared to the previous year. Sumeet Bagadia of Choice Broking highlighted, "NHPC's share price has strong support placed at ₹70, whereas it is facing a hurdle at ₹84 apiece," providing investors with strategic guidance on possible entry and exit points.
Despite the recent pressures, analyst sentiment around NHPC remains cautious yet optimistic, with JM Financial maintaining a buy rating but lowering its target price. They stated, "We estimate revenue, EBITDA, PAT CAGR of 22 percent, 31 percent, and 21 percent over FY24-27E," emphasizing NHPC's pivotal role amid India's greater emphasis on hydropower capacity and green energy initiatives.
Meanwhile, Adani Enterprises is anticipated to capture market attention as well, magnified by potential order book updates post their recent letter of intent. Mahesh M Ojha, Head of Research at Hensex Securities, suggests bullish movement might arise for Adani shares next week, positioning it as another focal point for investors on Dalal Street.
While the market continues to possess underlying volatility influenced by geopolitical tensions and fluctuations observed from Wall Street, investors are urged to watch for macroeconomic indicators, especially those pertaining to inflation and central bank policies. Shrikant Chouhan from Kotak Securities cautions, "Factors like uncertainties on US President’s trade policies and retaliatory tariffs, along with capital outflows, pose challenges to global and domestic equity markets.”
With Q3 earnings season underway, various experts are putting forth their stock recommendations. Sumeet Bagadia has highlighted stocks like Aarti Pharmalabs Ltd and NDR Auto Components Ltd as potential buys, with expectations for upward trends due to strong technical indicators, affirming investor interest. He pointed out, "The stock has shown substantial upward momentum, indicating strong investor interest. The chart reveals a steady climb, supporting continued bullish sentiments if buying pressure persists."
For investors considering stocks under ₹100, Sumeet Bagadia identified Nandani Creation, Southern Petrochemical Industries Corp, and Raj Television Network as viable options to explore.
Overall, the Indian stock market's movements for February 2025 shape up as a period of strategic stock evaluations and opportunities for discerning investors. With major earnings announcements on the horizon and analysts weighing potential outcomes, investors remain focused on adapting their strategies to navigate this dynamic financial environment.
Disclaimer: The views and recommendations expressed are those of the professionals quoted and do not represent the opinions of any financial institution or publication, including Live Mint. Always seek personalized advice from certified experts before making investment decisions.