Sun Pharma: ICICI Securities Sees Buying Opportunity
Indian Markets Brace for Geopolitical Uncertainty
The Indian stock market is facing headwinds this week due to rising geopolitical tensions with Pakistan, triggered by recent drone and missile attacks. The Nifty 50 declined 1.39% and the Sensex fell 1.30% as investors reacted to the escalating situation. Foreign Institutional Investors (FIIs) pulled out ₹3,798 crores worth of shares on May 9th, further adding to the market’s volatility.
Despite the recent turmoil, experts believe the market may stabilize as a ceasefire has been declared. Once the uncertainty subsides, FIIs are expected to return, potentially boosting the market.
Technical Outlook and Stock Recommendations
Dharmesh Shah, Vice President at ICICI Securities, anticipates a consolidation phase for the Nifty 50 in the range of 24,500-23,200 during the current earnings season. He suggests that stock-specific movements will dominate the market during this period.
Shah recommends buying shares of Sun Pharmaceutical Industries (Sun Pharma) in the price range of ₹1,780 – 1,833, with a target price of ₹2,040 and a stop-loss of ₹1,687.
Factors Supporting the Market Outlook
Shah points to several factors that support his optimistic view on the market:
- Consistent FII inflows
- The completion of the India-UK Free Trade Agreement
- Potential for a bilateral trade agreement between India and the US
- Weakening trends in the US dollar index and Brent crude oil prices
He believes that these factors will act as a cushion for the market and contribute to its long-term growth.
Disclaimer
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 09/05/2025 or have no other financial interest and do not have any material conflict of interest.
