Market edges up amid mixed sector performance; defence stocks rally 5%  (2025)

Benchmark indices ended Tuesday’s session with marginal gains as markets traded in a narrow range amid mixed global cues. The Sensex closed 70.01 points higher (0.09 per cent) at 80,288.38, while the Nifty 50 inched up 7.45 points (0.03 per cent) to 24,335.95, giving up most of their early morning advances.

The defence sector emerged as the day’s standout performer with a 5 per cent rally, while IT stocks gained 1 per cent. However, pharma stocks faced selling pressure, declining by 1 per cent as profit-taking emerged in select counters. The broader market showed slightly better performance than the frontline indices, with the Nifty Midcap 100 rising 0.27 per cent to 54,587.95.

“Today, the benchmark indices witnessed a range-bound trading session,” said Shrikant Chouhan, Head Equity Research at Kotak Securities. “Technically, the market is consistently facing resistance near the 24,450/80500 resistance zone. A small bearish candle near this important resistance level indicates indecisiveness between the bulls and the bears.”

Among top gainers on the NSE, Trent led with a 5.77 per cent surge to ₹5,510, followed by Bharat Electronics Limited (BEL) which jumped 3.97 per cent to ₹317.15. Tech Mahindra gained 2.29 per cent to ₹1,495, while index heavyweight Reliance Industries advanced 2.20 per cent to close at ₹1,398.90. Eternal also moved up 1.74 per cent to ₹231.16.

On the losing side, Sun Pharma dropped 2.25 per cent to ₹1,800.20, followed by UltraTech Cement which declined 2.18 per cent to ₹11,850. Coal India fell 2.13 per cent to ₹388.70, while ONGC and Dr. Reddy’s shed 1.98 per cent and 1.88 per cent respectively.

Market breadth remained negative for the fourth consecutive session, with 2,095 stocks declining against 1,830 advances on the BSE. The day saw 64 stocks hitting 52-week highs, while 33 touched their 52-week lows. The BSE advance-decline ratio stood at 0.87, according to Nandish Shah, Deputy Vice President at HDFC Securities.

The Indian rupee weakened by 22 paise against the US dollar to settle at 85.25, primarily due to increased demand for the greenback from bankers and importers.

Volatility increased as India VIX rose by 2.53 per cent to 17.37, suggesting heightened market uncertainty. “Markets jumped in the morning trade after US treasury secretary Bessent said India will be one of the first trade deals US will be doing as early as next week lifting market expectations. However, caution soon set in on continued escalation and tensions between India and Pakistan on border,” noted Satish Chandra Aluri from Lemonn Markets Desk.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, observed: “A small red candle was formed on the daily chart with minor upper shadow. Technically, this market action indicates failed upside breakout attempt of the hurdle of around 24350-24400 levels. Hence this could mean chances of more consolidation in the short term.”

Sector-wise, IT stocks emerged as top performers on hopes of easing trade tensions, while metals and pharma counters faced selling pressure. Ajit Mishra, SVP of Research at Religare Broking Ltd, commented, “Beyond the strong performance from banking and financials, we are now witnessing rotational buying in heavyweight stocks from other sectors such as IT, energy, and auto. This trend could support the index in maintaining its positive bias.”

Looking ahead, analysts expect the market to remain in consolidation mode in the short term. “Nifty is expected to extend consolidation in the range of 24,550-23,800,” according to Bajaj Broking Research. “We believe the current consolidation will help the index work off the overbought condition developed after the recent strong rally.”

Rupak De, Senior Technical Analyst at LKP Securities, added: “Consolidation may continue in the short term, especially as the index has yet to give a decisive breakout above 24,550, where the 61.80 per cent retracement level lies. On the lower end, support is placed at 24,250; a breach below this level could trigger increased selling pressure in the market.”

Experts maintain that volatility is likely to remain elevated due to ongoing geopolitical tensions, developments related to tariffs, and the unfolding Q4 earnings season, with stock-specific action continuing to remain in focus.

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Published on April 29, 2025