Indian stock markets experienced a choppy start today, with the Sensex showing initial volatility and the Nifty hovering below the 25,200 mark. This comes amid mixed global cues and ahead of key corporate earnings reports.

Market Performance

The domestic equity benchmark indices, Sensex and Nifty 50, were expected to open lower on Wednesday, following weak global market cues. Mirroring the weakness in Asian markets, the Indian equity benchmarks edged lower. Caution prevailed as investors awaited corporate earnings and monitored key updates on US trade discussions.

The Gift Nifty was trading around 25,174, a discount of nearly 91 points from the Nifty futures' previous close, signaling a potentially negative start for Indian stock market indices.

On Tuesday, the Indian stock market indices closed with decent gains, snapping a four-day losing streak. The Sensex rose 317.45 points, or 0.39%, to close at 82,570.91, while the Nifty 50 settled 113.50 points, or 0.45%, higher at 25,195.80.

Factors Influencing the Market

Several factors are contributing to the current market conditions:

• Global Cues: Asian markets traded lower following US inflation data that tempered hopes for Federal Reserve interest rate cuts. The US stock market ended mixed, with the Nasdaq posting a record close.
• US Trade Policies: Uncertainty regarding United States trade policies, particularly President Trump's tariff announcements on trading partners, has created anxiety.
• Q1FY26 Earnings: The market is closely watching the Q1FY26 earnings outcomes and management guidance, which are expected to drive stock-specific movements. Several companies, including Tech Mahindra and ITC Hotels, are scheduled to announce their Q1 results today.
• India-US Trade Deal: All eyes are on the India-US trade deal, with a dedicated team from India's Commerce Ministry in Washington for negotiations.
• FII Activity: Foreign Institutional Investors (FIIs) have been net buyers, providing fundamental support to the market.

Stocks in Focus

Several stocks are expected to be in focus today due to key news developments and the release of their Q1 results:

• Tech Mahindra: The company's shares are in focus as it is scheduled to announce its Q1 results today. Tech Mahindra is a key player in the IT sector, providing digital transformation, consulting, and business re-engineering services.
• ITC Hotels: ITC Hotels' shares are also in focus as the company is set to declare its Q1 results. The company reported a 41% YoY jump in Q4FY25 net profit.
• HDFC Life: The company's share price rose after reporting a 14% Y-o-Y increase in net profit for Q1FY26.
• Dixon Technologies: Dixon Technologies' shares advanced after the company entered into a joint venture.
• HDB Financial Services: The company's share price slipped after its profit after tax fell around 2% Y-o-Y.

ITC Hotels in Detail

ITC Hotels has been gaining attention for several reasons:

• Strong Q4 Performance: ITC Hotels reported a 41% YoY increase in consolidated net profit for Q4FY25, with revenue rising 17%.
• Demerger: The company's recent demerger from ITC has increased focus on its returns and growth.
• Valuation: Analysts have a positive outlook on ITC Hotels, with an average target price suggesting an upside from current levels.
• BAT Stake Exit: British American Tobacco (BAT) plans to exit its stake in ITC Hotels by 2026, which has kept the stock in focus.
• Growth Plans : The company currently has a portfolio of 140 hotels and plans to expand to 200 hotels by CY30.

Overall Market Sentiment

The market sentiment appears to be cautiously optimistic. While global headwinds and trade-related uncertainties are causing some hesitation, positive domestic factors and FII inflows are providing support. Investors are advised to maintain a selective approach, focusing on stock-specific movements driven by Q1FY26 earnings and management guidance.