The Indian stock market experienced a notable recovery on Thursday, bouncing back from a slow start. The BSE Sensex surged by 210 points, while the Nifty 50 index rose by 0.28%. Concerns over new auto import tariffs introduced by US President Donald Trump initially dampened market sentiment, but the IT sector managed to regain some losses, contributing to a more stable market overall.
Market Performance Overview
After beginning the day at 77,262.42, the benchmark BSE Sensex quickly bounced back, reaching 77,695.49, which marks a significant increase of 406.99 points or 0.53% by 10:07 AM. The Nifty 50 followed suit, initially dipping to 23,473.30 before climbing to 23,596.20, displaying a rise of 109.35 points or 0.47% during early trading.
- Sensex Recovery: Opened down 58.93 points, closed with a gain of 210 points.
- Nifty Performance: Started at a 13.55-point decline, bounced back to show a positive trend.
Market Volatility Ahead
On March 26, Indian equity indices broke their seven-day winning streak, closing lower. The Sensex fell by 728.69 points or 0.93%, ending at 77,288.50, while the Nifty 50 dropped 181.80 points or 0.77%, settling at 23,486.85. Analysts predict increased volatility in the market due to global trade uncertainties and the approaching expiration of Nifty 50’s March derivatives contracts. Investors are expected to adjust their positions, either closing them or rolling them over.
Long-Term Stock Recommendations
Brokerage firm ICICI Direct has identified three stocks worth considering for long-term investment:
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Hindustan Aeronautics (HAL)
- Recent delivery of the first F404-IN20 engine for the Tejas Mk 1A light combat aircraft signals strong future potential.
- Expected revenue growth of 25-28% through FY27, supported by an order book exceeding INR 1.3 trillion.
- Additional orders for 97 Tejas Mk 1A and 156 LCH Prachand are anticipated, enhancing confidence in earnings stability.
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City Union Bank (CUBK)
- New Loan Origination System (LOS) aims to improve efficiency and risk management.
- Projected growth of 12-14% YoY for FY25, with an ambitious target of 15-16% YoY for FY26.
- The bank is focused on increasing ‘green’ loan cases from 15-20% to 35-40%, enhancing productivity and efficiency.
- Ashok Leyland (AL)
- The company is contemplating a halt in production at its Switch Mobility subsidiary in the UK, due to economic challenges.
- Plans to shift focus towards the Indian market, aiming for EBITDA break-even by FY25.
- While strategic shifts might benefit long-term growth, increased promoter pledges may pose short-term risks.
Conclusion
The Indian market remains influenced by both local and global factors, including trade dynamics and corporate earnings. As investors navigate these waters, focusing on stocks with strong fundamentals, like HAL, CUBK, and Ashok Leyland, may provide promising opportunities for long-term growth. Stay tuned for further updates as market conditions evolve.
