Indian markets are expected to open on a flat note, as indicated by trading in the . The lack of triggers kept marketmen on edge. While investors anxiously await the US-India deal, the focus will also be on , which will be the first major company to announce its Q1-FY25 results.
“We expect TCS to post revenue decline of 0.5% QoQ in constant currency terms, with EBIT margins likely to remain flat, impacted by talent investments, lower utilization, and limited operating leverage,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Only active participation from s will set market direction, said analysts.
India’s equity landscape is witnessing a sectoral reshuffle driven by tactical foreign portfolio investments (FPIs), according to a note from Bajaj Broking.
After facing heavy outflows of over ₹15,700 crore between January and May, the automobile sector emerged as the top performer, attracting ₹5,020 crore in foreign inflows in the second half of June. A fall in interest rates and a revival in rural demand have enhanced the attractiveness of this sector, with valuations now at comfortable levels, it added.
“The IT sector, despite seeing aggressive selling of ₹31,766 crore earlier this year, saw a strong reversal with ₹2,879 crore worth of inflows in the last 15 days of June. The limited impact of tariffs on services, amid positive bilateral dialogue between India and the , has restored investor confidence. Similarly, oil & gas and financials also gained foreign inflows of over ₹4,000 crore each, driven by softer crude oil prices and -led liquidity infusion,” the report further said.
According to a Bajaj Broking study, foreign investors exited the power sector (₹3,191 crore) and the capital goods sector (₹3,022 crore) due to factors such as reduced electricity consumption resulting from an early monsoon and concerns about project execution risks. Nonetheless, analysts say this reallocation is valuation-driven, not sentiment-led, as investors shift to higher-yield sectors. The broader outlook on foreign inflows remains moderately positive, with expectations of incremental yet sector-specific FPI activity. The trajectory of global interest rate cuts, tariff outcomes, and India’s growing appeal amidst global de-dollarisation will continue to influence flows in the near term.
The derivative segment also signals a cautious market outlook. India VIX — a key measure of market volatility — fell by 2.09 per cent to 11.94, reflecting rising uncertainty among market participants, said Hardik Matalia, Derivative Analyst, Choice Broking
In the derivatives segment, open interest (OI) data indicated the highest call writing at the 25,500 and 25,600 strike prices, while the maximum put OI was seen at the 25,400 level. This suggests strong resistance around 25,500. However, the overall sentiment remains cautiously optimistic, and a decisive close above this level will be crucial to maintaining bullish momentum in the near term.
Meanwhile, Asian stocks are ruling mixed. While Japan is down, equities in Singapore, China, Hong Kong, Taiwan and Korea eke out a marginal gain.