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Informist, Friday, Jun. 27, 2025

By Simran Rede

MUMBAI – Analysts maintain their positive outlook on the domestic benchmark indices next week. Most analysts believe that it is unlikely for US President Donald Trump to impose tariffs in the near term. Additionally, positive domestic triggers such as the cut in the policy repo rate, fall in inflation and crude oil prices, and projections of above-normal monsoon will aid market sentiment.

Friday, the Nifty 50 closed at 25637.80 points, up 88.80 points, or 0.4%. The BSE Sensex closed at 84058.90, up 303.03 points, or 0.4%. Both the indices touched their fresh nine-month highs during the session. After a choppy one-hour of opening trade, the indices surged throughout the session. The resistance for the 50-stock index is pegged at 25900–26100 points and support at 25000–24800 points. 

India VIX, the fear gage of the Dalal Street, closed 1.6% lower at 12.3875. The index closed at its lowest level since March, reflecting improving market stability and growing investor confidence, although a moderate uptick in volatility cannot be ruled out in the near term, ICICI Securities said in a research report.

The bullish outlook on the market is also backed by the inflow of foreign funds, analysts said. Foreign investors consider India a safer country to invest in, owing to its good macroeconomic conditions and softening of the dollar index, analysts said. Amid global uncertainties and rising geopolitical tensions, the Indian equity market has already corrected enough and now there will not be much downside, Narendra Solanki, head of fundamental research-investment services, Anand Rathi Shares and Stock Brokers, said. Going ahead, the market will only gauge if there will be a rally or not, Solanki said. 

On the sectoral front, the Finance Ministry has confirmed there is no shortage of money for capital expenditure. Since the real headwind is in the procurement timeline, the ministry has decreased the period for buying a weapon to not more than two years, from 5 to 6 years earlier. This includes stages from issuing a request for proposal to field trials and cost negotiations. This reduction in time period is seen as positive for the sector as it will solve the issues in the execution of orders, said Solanki of Anand Rathi Shares and Stock Brokers. 

The cut in the policy repo rate and the cash reserve ratio by the Monetary Policy Committee of the Reserve Bank of India will help increase the lending power of the banks. With decent current valuations, Solanki prefers top-tier public sector banks. The banking sector is poised for a bullish outlook with potential levels of 26000 points as the resistance and then 26500 points if the prior level is surpassed, said Kshitija Salvi, technical analyst at IDBI Capital Markets & Securities. However, on the lower side, 25000 points and then 24800 points are seen as good levels for buying, Salvi said. The Nifty Bank index closed 0.4% higher at 57443.90 points.  End

Edited by Deepshikha Bhardwaj

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