Textile stocks cracked amid trade tensions. Godfrey Phillips surged 10% on strong Q1 earnings and a bullish technical breakout.
Indian equity markets ended lower on Tuesday as Trump’s ‘higher’ tariff threat weighed on investor sentiment. Profit booking dragged the Nifty index below 24,700. Focus now shifts to the Reserve Bank of India’s rate decision on Wednesday.
On Tuesday, the Sensex closed 308 points lower at 80,710, while the Nifty 50 ended 73 points lower at 24,649. Broader markets too traded under pressure, with the Nifty Midcap index ending 0.3% lower and the Smallcap index falling 0.1%.
And the retail investor sentiment surrounding the Nifty 50 moved to ‘neutral’ by market close on Stocktwits.
Stock Moves
Sectorally, barring auto, metals, and consumer durables, the rest of the indices ended in the red, led by energy, pharma and FMCG.
Textile stocks took a beating on simmering tariff uncertainty. Golkadas Exports cracked 9%, Welspun Living and Nitin Spinners fell 4%.
IndusInd Bank surged nearly 7% intraday and ended 2% higher after the bank appointed veteran Rajiv Anand as the CEO and MD for three years.
Payments aggregator Paytm ended 2% lower after Antfin, an Alibaba unit, exited the parent company by selling its remaining 5.84% stake via multiple block deals.
BSE shares ended 4% lower on reports that the market regulator is considering restricting weekly option expiries and hiking margin requirements to curb speculative trading.
Godfrey Phillips surged 10% and hit a fresh 52-week high on the back of strong Q1 earnings. Analyst A&Y Market Research noted that while Godfrey Phillips has always had a strong moat in the tobacco space, this quarter also highlights steady growth in FMCG and non-tobacco segments, along with efficient cost control and capital allocation. Its bonus issuance reaffirms a shareholder-friendly approach. On the technical front, the stock has broken out of a triangle pattern with good volume, indicating strong buying interest. They identified mid to long-term targets at ₹10,432, ₹11,000, and ₹11,542. Additionally, keep an eye on an increase in volumes for a breakout confirmation above key resistance levels with strong momentum.
Other earnings movers include Triveni Turbine (-9%), Keystone Realtors (-7%), and Adani Ports (-2%).
Stock Calls
Analyst Sudhansu Panda of Bluemoon Research noted that Tata Investment stock has been highly volatile for more than a year, with repeated resistance at the ₹7,300 to ₹7,600 zone. On the daily chart, it has made an inverted head and shoulder pattern. Panda believes that if the stock sustains above ₹7,600 and spends some time above that zone, then further momentum towards ₹8,200 to ₹9,000 is likely.
Global Market Cues
Globally, European markets traded higher, while US stock futures indicate a positive start on Wall Street.
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