More Stories

Informist, Thursday, Jun. 26, 2025

By Simran Rede

MUMBAI – India's headline indices are likely to continue their northward journey Friday and the Nifty 50 may test the 25700-25750 level in the near term as sentiment remains positive, analysts said. Both the indices closed at a nine-month-high Thursday and the sharp rise along with global uncertainties eventually subsiding prompted a stabilising environment in the equity market, they said. The Nifty 50 index may move in a 250-point range Friday.

"Anyway our market is in strong uptrend," said Nandish Shah, a technical and derivatives analyst at HDFC Securities. On Thursday, the Nifty 50 ended at 25549 points, up 304.25 points or 1.2%, and the BSE Sensex closed at 83755.87 points, up 1000.36 points or 1.2%. On Friday, analysts expect the Nifty 50 to move upward with resistance seen at 25640-25740 points and support at 25300-25100 points, said Hardik Matalia, technical and derivatives analyst at Choice Broking. 

The market will also eye the US unemployment data for the week ended Thursday, due later in the day, which will provide cues regarding the US job market and health of the economy. US Federal Reserve Jerome Powell signalled that inflation in the US is likely to rise. This has spurted concerns about inflationary pressures and the potential impact of US tariffs on the broader US economy.

Powell's comments on the interest rate trajectory of not lowering the key interest rate in the near term did not shift market expectations around Fed policy, with investors still anticipating two rate cuts this year. According to the CME FedWatch tool, traders see a 75.2% probability of the Fed holding rates at the July meeting of the US Federal Open Market Committee. However, bets on a 25-basis-point rate cut have increased to 24.8% from 12.5% last week.

Speaking about valuations, Indian equities are said to be highly valued. Despite high valuations, foreign investors have been investing in Indian equities as the market conditions look strong on the back of India's higher GDP growth rate, stable macroeconomic conditions, and greater returns from equities compared with peers.

However, further flow of foreign funds will likely depend on the June quarter earnings, which are expected to be better than those in the March quarter, said Astha Jain, senior research analyst at Hem Securities. The growth in India's corporate earnings is expected to gain momentum in the September and December quarters, she said. 

On the sectoral front, despite recent corrections in defence stocks, Jain of Hem Securities sees an upside potential for the sector. The Nifty India Defence index closed at 8713.35 points, up 0.4%. Additionally, she maintained her bullish outlook on public sector banks and sees the Nifty PSU Bank index rising further. The Nifty PSU Bank index closed at 6982.65 points, up 0.4%.  End

Edited by Akul Nishant Akhoury

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.