Indian markets opened muted, with Nifty hovering near 26,000 as momentum cooled post-record highs. Broader markets face strain, prompting caution. Analysts suggest Nifty will consolidate between 25,850 and 26,300. Investors are advised to be selective, buying dips and booking profits, with HDFC Life and BPCL identified as strong performers.
Reliance Powers shares declined as the Enforcement Directorate filed a chargesheet in a fake bank guarantee case, weighing on investor sentiment and drawing renewed attention to the companys ongoing legal challenges.
Investors are closely watching sectors like banking, manufacturing, auto distribution, and aviation after a recent rate cut. Analysts see temporary margin pressure for banks and potential opportunities in auto distribution. However, aviation faces further challenges. Digital platforms are preferred over insurers. Domestic institutions are buying IT stocks as foreign investors sell.
IndiGo faces significant financial headwinds due to widespread flight cancellations extending through December, impacting revenue by an estimated 5-7%. The airline is also grappling with increased pilot costs due to new regulations. Analysts, however, view this as a temporary operational blip, with operations expected to stabilize within weeks.
SpiceJet shares spiked intraday as operational disruptions at rival IndiGo boosted demand for its services. Despite the short-term rally, the stock remains fundamentally weak, with bearish technical indicators, high promoter pledging, and declining institutional interest. Q2 FY25 results further reflected stress, with revenue falling sharply and losses widening.
Indian stock markets are at a key turning point. Experts predict a strong rally over the next two to three years, potentially delivering 40-50% returns. This optimism is driven by solid corporate earnings and economic growth. Sectors like consumption, industrials, and private banks are expected to lead. Foreign investors may return as valuations become more attractive.
Thailand launched air strikes on Cambodia after accusing its forces of violating a ceasefire, resulting in at least one Thai soldier's death. This escalation follows a previous peace deal brokered by Donald Trump, which had already broken down after deadly July clashes that displaced hundreds of thousands.
