2 days Ago
Markets are expected to open on a flat note on Thursday amid a lack of triggers, as most global markets are closed Analysts expect stock specific action in this lacklustre market. Gift Nifty 23,845 signals a slightly negative bias In the derivatives space, the market reflected indecision, with a balanced tussle between call and put writers. “Nearly equal additions in both call and put options established a constrained range of 23,500–24,000, reflecting a persistent deadlock between market participants.
The Put-Call Ratio (PCR) ticked up to 1.03 from 0.93, indicating a marginal shift towards bullish sentiment.
Despite this, the “max pain” level at 23,800 suggests limited downside in the near term,” said Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities. Meanwhile Motilal Oswal Financial, in a market outlook report said, “Despite global challenges, India continues to be the fastest-growing economy among major nations, reflecting its resilience. Factors such as sustained growth, political stability, prudent reforms, infrastructure investment, healthy corporate finances, ample foreign reserves, controlled twin deficits, stable crude prices, and lower commodity inflation protects India from external shocks and positions it for future growth.
The past year saw a slowdown in earnings and consumption, rising global interest rates, geopolitical uncertainties, and high valuations in some mid- and small-cap sectors. CY25 may alleviate some concerns, with a gradual recovery in corporate earnings and consumption expected due to increased government spending in early CY25 and improved rural incomes after a successful kharif season. However, there may be some volatility in global trade and currencies after the new US administration takes charge, and persistent inflation could slow anticipated interest rate cuts.
“After a relentless rise, valuations have moderated from the CY24 highs. The 12-month forward P/E of Nifty-50 trades at 19.9x in Dec’24 (vs.
22.5x in Sep’24) at a discount to its LPA of 20.5x.
Notably, Nifty-50’s EPS CAGR of 17% over FY20-25E (at INR1,061 in FY25E) has been higher, with the index CAGR of 14% during the last five years (ending Dec’24). Further, Nifty-50’s earnings are anticipated to clock an 11% CAGR between FY24 and FY26.” he said.
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