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Informist, Wednesday, Sept. 24, 2025

 

By Simran Rede

 

MUMBAI – Investors are expected to continue taking profits Thursday following the recent gains in certain stocks on reforms in the goods and services tax rate structure. The general mood of caution in the market is likely to persist as investors recalibrate valuations and expectations of the September quarter earnings, analysts said. Investors are also waiting for information on the progress of the India-US trade talks.

 

Wednesday, the Nifty 50 settled at 25056.90 points, down 112.60 points or 0.5%. The BSE Sensex ended at 81715.63 points, down 386.47 points or 0.5%. The sentiment-driven profit sales in information technology stocks was one of the primary reasons for the fall in the market Wednesday. IT stocks have been under pressure after the US increased the H-1B application fee. The India-US trade negotiations and weak global cues are also prompting investor caution, Vinod Nair, head of research at Geojit Investments, said in a note. However, Nair believes the current headwinds may be temporary.

 

"Talks are happening at different levels," an official told the Press Trust of India. Multiple discussions are going on between India and the US, addressing trade as well as non-trade concerns, The Times of India reported. The official's statement comes even as Commerce Minister Piyush Goyal is in the US to take the negotiations on the proposed Bilateral Trade Agreement forward.

 

Despite Wednesday's fall, the 50-stock index closed above 25000 points for the 10th consecutive session. Analysts believe it is important for the index to stay above this psychologically crucial level for a possible upside. "The 25000 mark continues to serve as a significant support threshold for Nifty 50, which is anticipated to mitigate any further decline in the near term, followed by the strong technical support of 24915-24890 points, which is likely to act as sacrosanct support and could provide a breather," Osho Krishan, senior technical and derivatives analyst at Angel One, said in a note. The 50-stock index is expected to find support at 25000–24800 points, while it will face resistance at 25200-25500 points, according to technical analysts. 

 

With global headwinds continuing to affect Indian investor sentiment and given the uncertainty on a trade deal with the US, the relatively high valuations of domestic stocks and moderation in earnings growth in the September quarter continue to push foreign investors to pull back their investments and trim their positions, the head of research at a domestic broking firm said. However, positive domestic cues to support growth such as GST rationalisation keep the underlying trend constructive, the research head said.

 

The Indian pharmaceutical sector's revenue growth is expected to moderate to 7-9% on year in the current financial year from 10% in the previous year, Crisil said in a report. Exports to regulated markets are seen tempering due to a high base from advance purchases made last year, the ratings agency said. Meanwhile, exports to semi-regulated markets and domestic sales are expected to remain steady. The agency sees the GST rationalisation increasing affordability of essential medicines. The Nifty Pharma index closed 0.5% lower, ending in the red for the third straight day. 

 

Nikhil Nigania, director at Bernstein, believes power demand has been soft this year and 40 gigawatts of renewable energy was re-tendered, according to a CNBC-TV18 post on the microblogging site X. Nigania remains positive on India's power demand with a target of achieving 30–35 gigawatts of renewable energy capacity, as per the post. Nigania's view on Premier Energies and Waaree Energies is negative due to the upcoming supply glut. Premier Energies and Waaree Energies ended 3.2% and 1.6% higher, respectively, and were among the top gainers in the Nifty 200.

 

The domestic solar module manufacturing capacity is likely to exceed 200 gigawatt-peak, a measure of peak output under standard operating conditions, by the financial year 2027-28 (Apr-Mar), nearly four times the average annual module demand of 50-60 gigawatt-peak, CareEdge Ratings said in a report Wednesday. This will be supported by planned capacity additions of over 110 gigawatt-peak from established and new players, with a total capital expenditure of more than INR 140 billion, the rating agency said. Similarly, cell manufacturing capacity is estimated to reach 100 gigawatt-peak during the same period, with capital expenditure exceeding INR 550 billion, driven by backward integration efforts, it said.

 

On the sectoral front, the Nifty Auto index is expected to test 30000 points in the near term, CNBC-TV18 quoted Gautam Shah, founder of Goldilocks Global Research, as saying in a post on X. The index closed 1.2% lower at 27007.60 points and was among the worst hit sectoral indices. Shah sees 25% upside in the Nifty Metal index. It closed 0.7% lower at 10060.10 points.  End

 

Edited by Rajeev Pai

 

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