Indian share market is tipped to extend upmove on Friday, tracking firm cues from global peers, but caution will prevail until the Union Budget is presented, which will play a crucial role in shaping market sentiment. The positive trend at Gift Nifty also indicates a gap-up start for Sensex and Nifty, with Nifty futures trading 61.5 points, or 0.26%, higher at 23,318 mark, at 8:18 AM.

According to experts, market action is expected to pick up soon, with only six trading sessions left before the highly awaited Budget session. However, any strict trade measure and tariff hike by the Donald Trump’s administration may affect global market, trigger currencies volatility and instigate higher inflation.

“The trend holds a declining momentum YTD with a pause today contemplating the upcoming 2025 budget, which has a muted expectation.  Meanwhile in-line Q3 results showcasing QoQ growth to the indices suggesting that Q4 will be much better,” says Vinod Nair, Head of Research, Geojit Financial Services.

U.S. stocks extends gain on Trump’s Davos comments

In the overnight trade, Wall Street ended higher for the fourth consecutive session as market sentiment was lifted by U.S. President Donald Trump's Davos comments and corporate earnings. In a virtual address to the ongoing World Economic Forum WEF in Davos, Switzerland, Trump pitched for lower interest rates and cheaper oil prices and said he will urge Saudi Arabia and OPEC to lower crude prices, but did not elaborate on his proposed tariffs. At the closing bell, the Dow Jones Industrial Average was up 0.92%, while the S&P 500 and the Nasdaq Composite added 0.53% and 0.22%, respectively.

Asian stocks rise ahead on BoJ policy decision

Markets in Asia-Pacific region were trading higher, tracking rally at Wall Street overnight, amid fading concerns about Trump’s tariff and trade barriers. Japan’s Nikkei 225 was up 0.7% ahead of a key interest rate decision by the Bank of Japan later today, where a hike in anticipated.

China’s Shanghai Composite climbed 0.4% and Hong Kong’s Hang Seng rallied 1.4%. On the other hand, Australia’s ASX 200 ended 0.35% higher, while South Korea’s KOSPI gained 0.7% and that of Taiwan Weighted Index jumped 1%.

Domestic market exhibits positive trend

 The domestic benchmark indices, Sensex and Nifty, settled in positive territory for the second straight session on Thursday as market gained momentum after a flat opening, led by buying across IT, auto, and cement space. The 30-share Sensex ended 115 point higher at 76,520, rebounding 318 points from the day's low of 76,202 touched in early trade. The Nifty50 settled 50 points higher at 23,205, after hitting a high and low of 23,271 and 23,091, respectively. In the broader market, the BSE MidCap and SmallCap indices rallied 1.8% and 0.7%, respectively. The market breadth, indicating the overall strength, was marginally positive, with over 2,100 shares advancing and 1,800 stocks declining on the BSE.

The top gainers were UltraTech Cement, Zomato, Mahindra & Mahindra (M&M), Sun Pharmaceutical Industries, and Tech Mahindra. On the other hand, State Bank of India (SBI), Reliance Industries, HCL Technologies, Kotak Mahindra Bank, and Power Grid Corporation of India were among notable losers.

Technical outlook

From a technical perspective, not much has changed for Nifty50 after Tuesday’s sharp sell-off, with the index consolidating within a defined range, forming two consecutive small-bodied candles inside Tuesday’s bearish candle. . For bulls, a breakout above 23,400 is critical to triggering momentum, while for the downside, strong support exists at the recent lower range of 23,000, says Rajesh Bhosale, Technical Analyst, Angel One

“Analysing the daily chart, Nifty has been oscillating in the 23000–23400 zone since January 13, reflecting a calm phase ahead of the anticipated volatility leading up to the Budget announcement… While the benchmark index appears subdued, market action is expected to pick up soon, with only six trading sessions left before the pivotal Budget session,” he says.

Stocks to watch

Adani Energy Solutions: The Adani group company posted 79.5% YoY growth in profit at ₹625 crore in Q3 FY25, resulting from higher EBITDA, and aided by reversal of net deferred tax liability of ₹185 crore, mainly due to divestment of Dahanu plant in AEML.

Adani Green Energy Ltd (AGEL): The company logged 85% YoY rise in consolidated net profit to ₹474 crore for December quarter of 2024 on the back of higher revenues from power supply.

Dr Reddy's Laboratories: The pharma heavyweight has reported 2.5% YoY rise in its profit and 16% growth in revenue in the third quarter ended December 31, 2024, compared to the same period last year.

United Spirits: The alcohol maker reported consolidated net sales at ₹3,433 crore for the October-December 2024 quarter, up 14.4% year-on-year. The Consolidated EBITDA grew 16.9% YoY to ₹568 crore, while Q3 FY25 profit after tax was at ₹335 crore.

Zee Entertainment: The media company saw its consolidated net profit surging by 180% in Q3 FY25, which stood at ₹163.6 crore, compared with the same quarter last year, due to a reduction in its operating costs.

Mankind Pharma: The drug maker posted revenue growth of 24% YoY with strong adjusted EBITDA margin of 27.7% in Q3 FY25, driven by continued outperformance in chronic, strong recovery in OTC and consolidation of Bharat Serums and Vaccines Limited (BSV).

Patanjali Foods: The Food Safety and Standards Authority of India (FSSAI) has directed Baba Ramdev-led company to initiate a recall of the entire batch of red chilli powder due to certain concerns over food safety standards.

Kotak Mahindra Bank: The private lender has completed the acquisition of the personal loan book of Standard Chartered Bank, India, for ₹3,330 crore.

Adani Wilmar: The food FMCG company has started operations at its integrated food processing plant in Haryana.

Q3 earnings today: InterGlobe Aviation Ltd, the operator of IndiGo, JSW Steel, PCL, Bank of India, Godrej Consumer Products, DLF, AU Small Finance Bank, Aditya Birla Money, DAM Capital Advisors, DCB Bank, and Torrent Pharmaceuticals are set to release their Q3 numbers today.\

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