Sensex, Nifty 50 Set for Positive Start Amid Firm Global Cues, Continued FII Buying, and Reliance Earnings
Pre-Market Update April 28, 2025: Indian equity benchmark indices are likely to start the week on a positive note, supported by encouraging cues from global markets.
At 7:30 am, Gift Nifty was trading around the 24,161 mark, with a premium of about 173 points over the previous close of Nifty futures, hinting at a positive opening for Indian markets. Although domestic markets ended sharply lower on Friday, a key positive takeaway from the panic sell-off at Dalal Street was that both FIIs and DIIs emerged as net buyers. Adding to this institutional buying interest, Reliance Industries reported a strong fourth-quarter beat in profitability.
Reliance Industries Ltd posted a 2.4% year-on-year rise in consolidated net profit for Q4FY25, reaching ₹19,407 crore compared to ₹18,951 crore in the same period last year. Revenue from operations grew by nearly 10% YoY to ₹2,64,573 crore. The company's EBITDA increased by 3.6% to ₹48,737 crore, although the EBITDA margin slipped to 16.9% from 17.8% YoY. The board proposed a dividend of ₹5.50 per share for FY25.
Amid the upbeat news, there is a sobering development: net direct tax collections are expected to miss the revised estimates. According to provisional data, net direct tax collections for FY25 were slightly below the target of ₹22.37 lakh crore. One of the key factors contributing to the shortfall was lower-than-expected receipts from the securities transaction tax (STT).
In the coming week, investors are expected to keep a close watch on important stock market drivers such as the upcoming batch of Q4 earnings, developments in India-Pakistan geopolitical relations, monthly automobile sales figures, foreign fund flows, and major global signals.
Foreign Institutional Investors (FIIs) were net buyers, purchasing ₹2,952.33 crore worth of shares on April 25, 2025. Domestic Institutional Investors (DIIs) purchased shares worth ₹ 3,539.85 crore during the same period.
On a weekly basis, FIIs and DIIs both remained net buyers.
Institutional Activity (21 - 25 April)
FII (Foreign Investors): Net Buyer ₹18,928.20 crore
DII (Domestic Investors): Net Buyer ₹6,492.18 crore
Asian markets moved higher on Monday, supported by expectations of additional stimulus from China and ongoing trade talks with the US. The MSCI Asia-Pacific index, excluding Japan, inched up by 0.1%. Japan’s Nikkei 225 advanced 0.82%, while the Topix climbed 1.11%. In South Korea, the Kospi added 0.32% and the Kosdaq was up by 0.29%.
The US stock market finished higher on Friday, posting weekly gains as signs emerged of easing tensions between the US and China over trade issues. The Dow Jones Industrial Average edged up by 20.10 points, or 0.05%, to close at 40,113.50. The S&P 500 advanced 40.44 points, or 0.74%, ending at 5,525.21. Meanwhile, the Nasdaq Composite rose 216.90 points, or 1.26%, to settle at 17,382.94.
Last week, the US government indicated a willingness to ease trade tensions with China, which have been fuelling recession concerns. President Donald Trump mentioned that tariff discussions with China were underway. Meanwhile, China exempted certain US goods from high tariffs on Friday, suggesting some softening of the trade war. However, China promptly rejected Trump’s claim that formal negotiations had started.
Gold prices slipped as easing tensions between the US and China, along with a stronger dollar, weighed on sentiment. Spot gold fell by 0.3% to $3,309.31 per ounce after reaching a record high of $3,500.05 on April 22.
In the currency markets, the US dollar remained steady on Monday but stayed on track for its biggest monthly decline in almost two and a half years. The dollar index held at 99.695, slightly above last week’s low of 97.923.
Disclaimer: The article is for informational purposes only and not investment advice.
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