Indian equity markets ended the week flat amidst volatile trading, with benchmark indices consolidating. Broader markets, however, showed strength, particularly in midcaps, smallcaps, auto, and real estate sectors. Experts suggest continued consolidation for Nifty until a breakout above 24,400, while recommending selective bets in private banks and NBFCs.
Indian equity markets showed resilience amid geopolitical tensions and oil price swings, suggesting investors believe the worst is priced in. Market expert Nischal Maheshwari advises a "buy on dips" strategy, noting a rotation from PSU banks to private lenders and cautioning on auto sector valuations.
State Bank of India aims to maintain net interest margins above 3% in FY27, driven by easing funding costs from deposit repricing. However, slower CASA deposit growth compared to credit expansion may necessitate reliance on costlier term deposits. The bank plans to boost yields by accelerating growth in retail and MSME loans to offset margin pressures and support fee income.
Hopes for an imminent end to the 10-week-old U.S.-Iran conflict that would allow oil transit through the Strait of Hormuz were dashed after President Donald Trump on Sunday dismissed the Iranian response to a U.S. proposal for peace talks as "unacceptable".
Asian stocks advanced, led by AI-focused companies, as traders overlooked Middle East tensions. Despite rising oil prices and concerns over inflation, the market remains optimistic about corporate profits driven by AI investments. Investors are largely betting on a de-escalation in the Middle East, though volatility persists.
Foreign investors have significantly reduced their holdings in Indian equities, driven by slowing earnings growth, the AI boom in South Korea and Taiwan, and rising oil prices coupled with a falling rupee. This shift has led to substantial outflows, with strategists predicting a slowdown in selling but a slow return to popularity for Indian markets.
Indian stocks are facing losses while other economies see gains. This is due to a global AI investment frenzy benefiting chip makers like Samsung Electronics and SK Hynix. India lacks direct AI exposure, leading to lower corporate earnings growth. Foreign investors are seeking better returns elsewhere, impacting the Indian market.
Indian stock market benchmark Nifty is currently trading within a narrow range. Analysts observe mixed signals, with a bullish structure intact but facing resistance. Traders are awaiting a clear direction. Key levels to watch are 24,600 as resistance and 23,800 as support. Bank Nifty also shows improving momentum. Specific stock recommendations are provided for traders.
Gold and silver may remain range-bound for a second consecutive week as investors assess developments in US-Iran peace negotiations and global macroeconomic data, analysts said.
A total of 18 stocks will turn ex-date for corporate actions like dividends and bonus issues next week, with prominent names including State Bank of India and Godrej Consumer Products. Investors must hold shares by the record date to be eligible for these benefits.
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