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Informist, Monday, Nov. 17, 2025

 

By Gopika Balasubramanium

 

MUMBAI – Analysts remain bullish on benchmark equity indices and expect them to rise in the coming sessions. However, some analysts expect the indices to consolidate slightly as they had gained for six straight sessions in a row. Analysts expect the Nifty 50 to be volatile Tuesday on the back of expiry of weekly contract of Nifty derivatives. With the September quarter earnings season coming to an end, analysts said investors are expecting a stronger growth in December quarter results boosted by the full impact of the lower goods and services tax rates. Analysts also said the indices may track the movement in the US market in the near term. 

 

Technical analysts said that it was important for the Nifty 50 to cross 26000 points to rise further. Some analysts expect the 50-stock index to end the calendar year with new highs. Analysts said the near-term positive trigger for the Indian stock market would be India and the US cutting a trade deal. They see low crude oil prices aiding the market along side, while a depreciating rupee is seen hurting the sentiment, especially with foreign investors being net sellers more often.    

 

"The trend is likely to remain strong in the short term, with the potential to move towards 26200/26350," said Rupak De, a senior technical analyst, LKP Securities. "On the lower side, support is placed at 25800," he added. Monday, the Nifty 50 closed at 26013.45 points, up 103.40 points or 0.4%, with it managing to close above 26000 points for the first time in nearly three weeks. The BSE Sensex closed at 84950.95 points, up 388.17 points or 0.5%. Broader market indices also outperformed the benchmarks. The Nifty PSU Bank and the Nifty Bank hit record highs during Monday's session.

 

"Although Indian equities have registered a lackluster performance over the past one year, we continue to emphasize that the Indian markets now appear healthier compared to last year," Motilal Oswal Financial Services said in a strategy report. "The earnings cycle is bottoming out, with growth expected to accelerate into double digits," the broking firm said. Valuations of Nifty 50 companies remain reasonable and any signs of acceleration in earnings growth will support valuation expansion, it said. "Additionally, any resolution of the tariff stalemate will be a key external catalyst, in our opinion," the brokerage said.

 

Many brokerages acknowledged that there is visible improvement in the performance of Nifty 50 companies during the September quarter, although banks dragged overall profitability. "Several banks have guided for further NIM (net interest margin) improvement in 2HFY26 (Oct-Mar), driven by the benefits of the CRR (cash reserve ratio) cut, continued deposit re-pricing, and increased loan growth," Motilal Oswal said. 

 

While Motilal Oswal said the valuations are reasonable for the Nifty 50, Emkay Global Finacial Services said the valuations remains challenging. "Valuations are now stretched," the broking firm said. The Nifty 50 is trading at price-to-earnings growth of 20.6 times above long term averages, the broking firm said. "We expect an earnings recovery in 2HFY26 (Oct-Mar) on the back of consumption bounce-back, and one key positive is that the asking rate for Nifty (50) is a moderate 9%," the Emkay said. "We maintain our Nifty target of 28000 for Sep-26E (September) and see moderate returns from here," it said.  End

 

Edited by Akul Nishant Akhoury

 

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