More Stories

Informist, Tuesday, Oct. 7, 2025

 

By Gopika Balasubramanium

 

MUMBAI – Analysts remain bullish on domestic equities, with the next target for Nifty 50 seen at 25500 points. Most analysts expect the gains to sustain but some believe it will depend on the September quarter earnings of information technology companies. Analysts are less concerned about the selling by foreign investors as there is sufficient push from domestic investors. Derivatives analysts said domestic investors are covering their short bets, especially in banking stocks.

 

"Nothing much has changed in the market, but the consistency in the RBI's stance to cut rates as and when required and measures taken to support growth have led to recovery in the banking and financial services sector, which in turn (has) aided (the market) rise," Ajit Mishra, senior vice president – research at Religare Broking, said. "Now the focus is on Q2 earnings, as they are critical to decide whether the market will head to a new record high or will close the year on a subdued note," he added.

 

On Tuesday, the Nifty 50 closed higher by just 0.1% at 25108.30 points. The index moved in a tight range of 130 points during the day, but shed most of the gains towards the end of the session. The index has closed higher for the fourth consecutive session, gaining 2% in this period. However, the index faced strong selling pressure near 25200 points Tuesday, and analysts said there could be slight consolidation when this level is hit. But the short-term trend remains positive as long as Nifty 50 holds 25000-24900 points, they said.

 

"After three consecutive confident closings, Nifty (50) faced selling pressure near its resistance zone of 25200–25250 on Tuesday's session, indicating that bulls might take a pause, leading to a possible short-term consolidation," Vatsal Bhuva, technical analyst at LKP Securities, said in a note. "However, as long as the index sustains above 24900 levels...the outlook remains positive," he added.

 

Technical analysts expect the Nifty 50 to find immediate support at 24900 points and face immediate resistance at 25200-25300 points. However, they expect the 50-stock to be in a range of 24400-25400 points this month. 

 

The BSE Sensex closed Tuesday's session at 81926.75 points, up 136.63 points or 0.2%. Broader market indices also closed higher, with the midcap indices largely outperforming the small-cap. Analysts believe the valuations of small-cap and mid-cap stocks are slightly expensive, but their earnings growth outlook continues to be strong. That said, some analysts believe that the valuations of the Nifty 50 companies are now reasonable.

 

On the September quarter earnings, Nuvama Institutional Equities expects the net profit of Nifty 50 companies to rise 8% on year and revenue from operations to grow 5% on year. The broking firm expects earnings before interest, tax, depreciation, and amortisation of the Nifty 50 companies to rise 6% on year in Jul-Sept. While the cut in goods and services tax will be positive, it will not fully offset the hit from US tariffs, the broking firm said. However, Motilal Oswal Financial Services expects the net profit growth of Nifty 50 companies to be lower than that estimated by Nuvama. On Monday, the brokerage had said it expects the net profit of the Nifty 50 companies to grow 6% year-on-year in Jul-Sept.

 

Information technology stocks will continue to be in focus ahead of September quarter earnings, as they are the ones to detail the results first. Tata Consultancy Services is scheduled to announce its earnings Thursday. "While valuations (of information technology companies) seem fine, management comments on the guidance, clarity over the demand environment, and expansion into newer markets, apart from the US and Europe, will be keenly watched," Religare Broking's Mishra said. Most broking firms expect moderate growth in the earnings of IT companies.

 

On Wednesday, shares of Titan Co. will be in focus following the company's quarterly business update. The company said its domestic sales grew 18% on year in the September quarter and international business grew 86% on year. Its core domestic jewellery sales grew 19% on year during the period mainly due to the early onset of the festival season.  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.