Nifty Holds 24,300 as HDFC Bank, Infosys Earnings Drive Stock Moves

The Nifty 50 held above 24,300 on Wednesday, propped up by financial and technology stocks as investors parsed a fresh batch of quarterly earnings. The Sensex jumped about 300 points in early trade, with HDFC Bank and Infosys among the top contributors.

The rally came despite mixed signals from the broader market. About a dozen stocks closed at fresh lifetime highs on the BSE, while several mid-cap names posted sharp gains after reporting earnings. The market breadth remained positive, with about 1,800 stocks advancing on the BSE compared with 1,100 declining.

HDFC Bank shares rose after its Alpha Score reading of 36/100 on the AlphaScala platform, with the label "Mixed," indicating a neutral near-term outlook. The stock has been consolidating in a tight range over the past month, and traders said the earnings season could provide the next directional cue.

Infosys, which carries an Alpha Score of 57/100 with a "Moderate" label, also gained. The stock has been a laggard in the broader IT rally this year, and some traders see the current level as a buying opportunity, citing its valuation discount to peers.

The Nifty's hold above 24,300 is seen as a technical positive. Edelweiss Securities recently noted that Nifty consolidation historically sets up 18% next-year gains, a pattern that some traders are now watching. The index has been range-bound between 24,000 and 24,500 for several weeks, and a breakout above 24,500 could trigger short-covering, traders said.

On the macro front, the rupee remained under pressure, trading near 83.50 against the dollar. Positive foreign portfolio flows and rising oil prices have created a tug-of-war on the currency, with traders watching U.S. inflation data due later this week for the next directional trigger.

The broader market saw significant action in the consumer and infrastructure sectors. Carborundum Universal shares rose after a brokerage set a target price of ₹1,330-₹1,350, citing the company's strong positioning in the abrasives and ceramics market. The stock has been a consistent outperformer, and analysts expect the earnings momentum to continue.

In the electric vehicle space, the government is considering interest subvention for electric buses and e-trucks, a move that could boost demand for companies like Tata Motors and Ashok Leyland. Currently, fewer than 1,000 e-trucks with a capacity above 3.5 tonnes are operating in India. The government has allocated ₹4,391 crore for 14,028 electric buses under the PM E-Drive scheme, and charging infrastructure proposals worth ₹710-715 crore have been approved.

Several companies reported earnings after market hours on Tuesday. TPL posted a 134% jump in net profit to ₹77.82 crore, driven by higher demand and improved capacity utilisation. The company's vice chairman, Ashwin Muthiah, said the strong performance reflected the benefits of cost-led operational efficiencies and the company's ability to respond to higher customer demand. He added that despite the evolving geopolitical situation in the Middle East and increased input costs, lower import pressures supported the quarter's overall performance.

Another company reported revenue growth of 19.2% year-on-year to ₹4.43 billion, though margins came under pressure, with EBITDA margin falling to 11.6% from 19.8% a year earlier. The company's management said performance is expected to be back-ended toward the second half of the fiscal year, with geopolitical uncertainty continuing to drive quarterly volatility.

The aftermarket segment remained a bright spot for some engineering and capital goods companies. One firm reported a 115% jump in aftermarket closing orders to ₹6.24 billion, supported by refurbishment, utility turbines, gas turbines, geothermal and biomass projects. The company's US aftermarket contribution remains below 10%, but the US entity is targeted to break even in the current fiscal year.

Data-centre demand is gaining traction as gas turbine lead times reach four to five years, driving interest in conventional combined-cycle solutions. The inquiry pipeline for organic Rankine cycle (ORC) systems is increasing globally, several companies reported.

On the earnings front, a consumer durables company reported revenue growth of 33.8% year-on-year to ₹886 crore, though EBITDA margins contracted to 6.21% from 8.24% a year earlier. The company's RAC business grew 43.8% year-on-year, while the small domestic appliances (SDA) and large domestic appliances (LDA) segments grew 68.9%. Strong traction in air-fryers supported growth in the SDA segment. However, PAT declined sharply due to higher depreciation and finance costs.

The market's focus now shifts to the next batch of earnings and the U.S. inflation data due later this week. A softer print could revive bets on a September rate cut by the Federal Reserve, which would be positive for emerging markets like India. A hot number, on the other hand, would reinforce the case for the Fed to hold rates higher for longer, potentially weighing on risk appetite.

For now, the Nifty's range-bound action is keeping traders on the sidelines, with many waiting for a breakout above 24,500 or a breakdown below 24,000 before committing fresh capital.