Market Bizzz

News that the United States and China are due to talk on Saturday eased concerns about a trade war that has shaken investor confidence in the dollar and U.S. markets. Fed Chair Jerome Powell was expected to say more data is needed before deciding the U.S. central bank’s next move.

Indian Armed Forces initiated Operation Sindoor, targeting terrorist infrastructure in Pakistan and PoK in response to attacks planned against India. The operation involved coordinated efforts from the Army, Navy, and Air Force, striking nine terror-related targets using precision munitions. The Ministry of Defence emphasized the operation was focused, measured, and non-escalatory, with no Pakistani military facilities targeted.

Aniruddha Naha of PGIM India Asset Management suggests opportunities in small and microcaps with cleaner balance sheets, highlighting capital goods and agrochemicals due to completed capex and normalizing inventory. He remains positive on pharma despite tariff concerns, anticipating the financial sector’s potential. Naha favors discretionary consumption, particularly music and liquor, while cautioning on travel and tourism valuations.

Angel One’s Sneha Seth analyzes Nifty and Nifty Bank. Nifty finds support around 24,200-24,300, facing resistance near 24,500-24,700. Profit-taking occurs in the banking index, with support at 54,400-54,500. MGL shows buying interest, potentially surpassing 1400-1405 resistance. SBI Card’s chart structure suggests upward movement, supported by its 20 DMA. Seth recommends going long on MGL and buying SBI Card.

Ircon International has secured a Rs 187.08 crore work order from KSITIL for constructing a rural industrial park in Thiruvananthapuram, slated for completion in 30 months. This follows a Rs 458.14 crore contract from NEEPCO for civil works on the Tato-I Hydro Electric Project in Arunachal Pradesh, to be executed over 45 months.

Despite a slight economic downgrade, India’s 6% growth rate positions it for continued market expansion, attracting both local and international investors. A valuation correction provided a favorable entry point, leading to a significant return of global investors. While export-oriented sectors face uncertainty, domestic consumption and rural-focused sectors like FMCG and BFSI are promising.

Credit Suisse’s Jitendra Gohil notes improved macro stability in India is aiding FPI sentiment, though sustained buying hinges on earnings recovery. While US tariff policy shifts impact market sentiment, large-cap IT stocks and correcting NBFCs/private banks present attractive opportunities. Gohil favors private banks and financial intermediaries over insurance due to competition concerns.

Buffett spoke at Berkshire’s annual shareholder meeting in Omaha, Nebraska, 1-1/2 months after Berkshire said it raised its stakes in Itochu, Marubeni, Mitsubishi , Mitsui and Sumitomo to as high as 9.8%.