Indian stocks increase marginally; Q1 earnings key monitorable going ahead

The Indian stock indices increased slightly on Monday morning, but analysts noted that it is unlikely that the market will continue to rise from its current levels. Notably, the Sensex appears to have stabilized at about 65,000 points. This morning, the benchmark Sensex and Nifty both increased by 0.3%. The most recent bull run in Indian stocks was supported by a steady inflow of foreign capital, a positive outlook for the economy, and a moderating inflation rate. Reliance Industries, Bajaj Auto, and HDFC Life were among the top gainers in Nifty 50, while NSE data showed HCL Technologies, Bajaj Finance, and Titan among the losers.
On Friday, Indian stock markets witnessed profit booking after going through a consistent bull run in the past eight-odd trading sessions.
“After the recent surge that took the benchmark indices to new highs, the market is likely to move to a consolidation mode,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sticky core inflation in the US is also likely to restrain the ongoing rally in the Indian market, added Vijayakumar. “In brief, the market is likely to move into a consolidation phase.”
Meanwhile, the shares of IdeaForge Technology, which listed on the stock exchange on Friday with stellar gains, were about 8 per cent lower this morning, possibly on profit booking.
It had listed on the stock markets at Rs 1,305 against its issue price of about Rs 672, thus accumulating 94 per cent listing gains for the investors. IdeaForge Technology, a startup incorporated in 2007, is into drone manufacturing.
For fresh cues in overall domestic markets going ahead, investors await April-June earnings data of Indian companies, expected to pour in starting this week.
Retail inflation data for June due next week will be another key monitorable for investors.
Retail inflation in India further eased in May to 4.25 per cent, hitting a two-year low. It was at 4.7 per cent in April and 5.7 per cent the previous month. India’s sharp decline in inflation figures could be attributed to RBI’s consistent tightening of monetary policy since mid-2022. Retail inflation in India exceeded the RBI’s 6% target for three consecutive quarters and only managed to return to the RBI’s safe level in November 2022. If the CPI-based inflation is outside the 2–6% range for three consecutive quarters, the flexible inflation targeting framework considers the RBI to have failed in managing price increases.