More Stories

Informist, Monday, Aug. 25, 2025

 

By Simran Rede

 

MUMBAI – With a truncated week and mixed cues, analysts are cautious about the near-term outlook for the market. While the market cheered Federal Reserve Chair Jerome Powell signalling that the Fed was open to lowering interest rates as soon as next month, concerns regarding US tariffs continue to linger.

 

On Monday, the Nifty 50 closed at 24967.75 points, up 97.65 points or 0.4%, and the BSE Sensex ended at 81635.91 points, up 329.06 points or 0.4%. However, the overall market breadth was negative, with nearly 52% of the stocks traded on the NSE closing lower. Moving ahead, the Nifty 50 is expected to move in a range of 24800–25150 points, according to analysts. 

 

Reforms in goods and services tax, likely by the end of 2025-26 (Apr-Mar), are seen as a positive trigger for India's consumption story. Consumer sectors such as fast-moving consumer goods and automobiles are likely to benefit the most. "We recommend a staggered accumulation approach, focusing on fundamentally sound counters, particularly those likely to be beneficiaries of the upcoming GST rationalisation," Bajaj Broking said in a note. 

 

Fitch Ratings affirmed India's long-term foreign-currency issuer default rating at 'BBB-' with a stable outlook. Just a few days ago, on Aug. 14, S&P Global Ratings had upgraded India's long-term unsolicited sovereign credit rating to 'BBB' from 'BBB-'. The affirming of India's rating by the global brokerage may have a negative impact on the Indian market, analysts said. The rating agency sees moderate downside risk from US tariffs to its India GDP growth forecast. However, it said the proposed goods and services tax reforms, if adopted, would support consumption, offsetting some of the risks to growth.

 

Reserve Bank of India Governor Sanjay Malhotra Monday urged India's corporate houses to invest boldly in the economy. He was speaking at the FIBAC 2025 event conducted by the Federation of Indian Chambers of Commerce & Industry and the Indian Banks' Association.

 

On the sector front, ICRA Ltd. Monday said that it expects India's domestic two-wheeler industry to grow 6-9% on year in FY26, boosted by steady replacement demand, a recovery in urban consumption, healthy rural incomes aided by a above-normal monsoon, and a possible reduction in GST rates that could provide an additional boost. 

 

Crisil Ratings expects large, diversified engineering, procurement, and construction companies to witness an uptick in revenue growth at 9-11% in FY26. Steady growth in infrastructure capital expenditure, healthy order books, and faster execution of projects, with a favourable shift in the order mix are likely to aid this growth.

 

Foreign broking firm Jefferies is upbeat on India's contract research, development, and manufacturing organisation sector, Business Standard reported. It said the sector is evolving from quasi-chemical firms into strategic partners for innovators. Jefferies expects the sector's revenue to grow at an 18% compounded annual rate during FY25–FY30, supported by strong pipeline visibility, big pharma diversification (China Plus One strategy), and growth in weight-loss and type-II diabetes drugs (GLP/GIP), the report said.

 

Kotak Institutional Equities sees the capital expenditure of Reliance Industries remaining stable and the profitability of its core business improving, according to a post on X by CNBC-TV18. The brokerage is positive about the company's consumer business. However, it is cautious about RIL's order-to-cash due to lower availability of Russian crude oil and geopolitical risks from US tariffs, the post said. Kotak has maintained its 'buy' rating on the stock with a target price of INR 1,555. The stock closed at INR 1,412.60 on Monday, up 0.2%. 

 

Goldman Sachs expects the launch of NTORQ 150 and new electric scooter to strengthen TVS Motor's internal combustion engine and EV scooter segments, NDTV-Profit reported. Goldman Sachs also noted an improvement in supply chain dynamics, and said, "The rare earth metal shortage situation appears to have abated for the time being for Indian EV manufacturers."

 

However, the brokerage clarified that its estimates do not include any speculative benefits from potential goods and services tax reforms. "We do not build in any upside from potential GST rationalisation, as these measures are yet to be announced by the government of India," the report said. The brokerage has maintained its 'neutral' rating on the stock with a target price of INR 3,430. On Monday, shares of TVS Motor Co. closed 0.3% lower at INR 3,284.70.  End

 

Edited by Avishek Dutta

 

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.