IndiGo Joins India’s Nifty as Analysts See Profit

Indian markets are likely to open on a quiet note today, even as global sentiment improves with hopes of US Fed rate cuts. After two consecutive weeks of gains, benchmark indices may take a breather this week, especially with fresh US tariffs set to take effect on Wednesday. The recent selloff in the local bond market, which could drive up corporate borrowing costs, is also adding to investor caution. Key focus areas this week include IT stocks, Q1 GDP data, and movements in sovereign bonds.

IndiGo is joining the Nifty index after its stock rallied over 30% this year. While most analysts remain bullish, Crisil Ratings has warned of a potential 14% drop in combined operating profits for major airlines due to rising costs, despite strong passenger growth of 7%-9%.

Meanwhile, real estate firms recorded record-high pre-sales of ₹432 billion in Q1, up 45% year-on-year. However, the sector’s stocks remain under pressure due to high valuations and softening volume growth.

In positive news, IDBI Bank’s divestment moved forward, with LIC’s stake reclassified as public, clearing a key hurdle.