More Stories

Informist, Tuesday, Jun. 10, 2025

By Akash Mandal

MUMBAI – Benchmark indices are seen moving in a thin range Wednesday after rising by 2% in the past four sessions. The underlying sentiment is still positive, but the gains are expected to be capped this week as the market needs to cool-off, analysts said. On Wednesday, the Nifty 50 is seen moving between 25000 and 25500 points. Investors would look for positive developments on trade talks between the US and China, with leaders of both the countries set to meet again later Tuesday.

"The upside is likely to be limited this week...firstly, there might be some profit booking seen. Bank Nifty, which has the heaviest weightage, is also overvalued and is likely to be subdued," Jigar Patel, senior manager of equity research at Anand Rathi Shares & Stock Brokers, said. On Tuesday, the Nifty 50 closed at 25104.25 points, up 1.05 points, and the BSE Sensex ended at 82391.72 points, down 53.49 points.

Shrikant Chouhan, head of equity research at Kotak Securities, also expects the market to keep consolidating. "We are of the view that as long as the market (Nifty 50/Sensex) trades between 25000/82000 and 25200/82600, range-bound textures are likely to continue," Chouhan said in a note. "A successful breakout above 25200/82600 (for Nifty 50/Sensex) could push the market up to 25350/83000-25400/83200. On the other side, below 25000/82000, selling pressure is likely to accelerate," he said.

Though the Nifty Bank rallied both ahead of and after the Reserve Bank of India's policy outcome on Friday, some analysts are concerned that the impact of a higher-than-expected repo rate cut on the margins of banks in the near term has not been factored in. The Nifty Bank may test the 56000 levels soon as it has been overbought by investors, Patel of Anand Rathi said. "56300-56400 seem to be comfortable levels for Bank Nifty...there might be a sharp correction before the index then rallies to fresh highs," he said.  On Tuesday, the Nifty Bank ended slightly lower at 56629.10 points. HDFC Bank and ICICI Bank, both part of the 50-stock index, ended 1% lower and were the biggest drag on the index.

Despite the aggressive measures announced by the central bank to drive growth, many analysts believe that the GDP growth will still fall short of the RBI's estimate of 6.5% in 2025-26 (Apr-Mar). "On our forecasts, GDP growth is likely to surprise lower at 6.2%...therefore, we do not view today's action as the end of the easing cycle. We continue to see the terminal rates at 5.00%, with a likely pause in August, followed by 25bp (basis points) rate cut in each of October and December," Nomura Global Markets Research said in a report Friday.

Emkay Global Financial Services believes that the aggressive actions taken by RBI are a "seismic" shift in its approach. "In our view, the monetary policy through its actions and communication marks a seismic shift – aimed at nudging the potential growth rate of the economy higher...we believe as inflation remains anchored at lower levels, the RBI will continue to gradually lower rates, although at longer intervals," Emkay Global said in a report Monday.  End

Edited by Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.