Markets opened strong but turned volatile! Sensex dances around 80K, Nifty tests key levels
On 25 April 2025, the Indian stock market was seen battling headwinds and tailwinds from a mixed bag of global cues, corporate earnings results, and geopolitical tensions. While the 30-share Sensex and 50-share Nifty opened in the green on the uplift of positive global cues, they were volatile during the day, witnessing intraday profit booking.
Market Overview
Sensex started above the 80,000 region with the Nifty 50 trading above 24,300 on an opening note. But throughout the trading session, profit booking in traders’ minds came into play and turned the Sensex early into negative territory with trades below 24,250 for the Nifty. This choppy movement was largely attributed to profit booking and cautious investor sentiment due to heightened geopolitical undertones.
Sectoral Performance
Sector-wise performances were varied across the board. Sustaining its momentum, the IT sector began to reverse early losses and trade in the green. While Axis Bank stocks were under pressure and fell 3% after its Q4 result announcements, SBI Life Insurance accelerated by 9% after the company reported its quarterly results.
Corporate Earnings
Impacted a huge number of stocks the subsequent moves after the Q4 FY25 announcement from the companies:
Axis Bank-The flat net profit of ₹7,118 crore against the previous quarter’s profit march was impacted mainly by a rise in loan loss provisions and lower trading income.
SBI Life Insurance-Net Profit stood at ₹813.51 crore, marginally up from ₹810.8 crore against the previous year, while net premium income was 5% lower.
Tech Mahindra-Another company that reported on-the-rule performance, with net profit up 76.5% to ₹1,167 crore on the back of margin expansion and tax benefits.
Adani Energy Solutions-On a consolidated basis, net profit was up 79% from the year-ago quarter to ₹647.15 crore, with revenues growing 35.5%.
Global Influences
The Indian equities had their shares kissed by the global markets, with Asian stocks trading higher due to Wall Street gains. The MSCI Asia ex-Japan index went up 0.8%. The U.S. markets closed in the green due to optimism over trade talks between the U.S. and China, but investors were very cautious following geopolitical tensions sparked by a recent militant attack in Kashmir.
Foreign Investment
On buying orders, FIIs net purchased ₹8,250.53 crore on April 24 for the seventh consecutive day of inflows. This continuous investment indicates that the foreign institutional investors still have the faith of the Indian market despite the uncertainties.
Technical Outlook
Market analysts believe that support for Nifty 50 is around the level of 23,800 points and resistance around the level of 24,400 points, while in the case of the Bank Nifty, support is expected at 54,500 points, with upside target levels of 56,200 points and 57,500 points in the upcoming sessions.
The Indian stock market, on April 25, 2025, reflected a complex interplay of domestic and global factors. While positive global cues and strong corporate earnings provided support, geopolitical tensions in conjunction with profit booking contributed to a volatile market. Investors are advised to closely monitor developments and consider sector-specific performances before making investment decisions.
