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Informist, Monday, Nov. 24, 2025

 

By Gopika Balasubramanium

 

MUMBAI – The wait for India's headline indices to hit new life-time highs has got longer, as some analysts expect them to consolidate in the near-term. Some analysts said aggressive call writing at multiple out-of-money strikes put pressure on the Nifty 50 Monday, hinting at near-term pessimism. Depreciation of the rupee against the dollar has also led investors to take a cautious view. Analysts expect the market to be volatile Tuesday, in view of the expiry of monthly derivatives contracts of the Nifty 50. Global markets could also dictate market sentiment, analysts said.

 

Technical analysts said 25850–25800 levels will be crucial supports for the Nifty 50 and a breach below these levels could lead to further fall in the near term. On the other hand, 26100-26150 levels will act as immediate resistance for the index. "Being a monthly expiry session, traders are advised to monitor these key levels closely and position accordingly," Rajesh Bhosle, equity technical analyst at Angel One, said in a note. "Stock-specific moves may dominate on the derivative settlement day, but given the recent broad-market vulnerability, one needs to remain extremely selective as only a handful of names have shown steady relative strength," he added.

 

Some analysts said continued delay in a US-India trade deal has also affected the market sentiment. "...market sentiments are likely to remain cautious until we see some progress on the India US trade talks, while fluctuating foreign flows could add to interim volatility," Siddhartha Khemka, head of research – wealth management at Motilal Oswal Financial Services, said in a note.

 

However, India's macroeconomic factors are favourable for near-term growth. Analysts retain their view on recovery of earnings growth of Indian corporates in the upcoming quarters. This would be likely on the back of policy actions, cut in goods and services tax rates, sufficient liquidity in the banking system, and hopes of an interest rate cut by the Reserve Bank of India.

 

On Monday, the Nifty 50 closed at 25959.50 points, down 108.65 points or 0.4%. The index closed below 26000 points after staying above it in the last three sessions. The BSE Sensex closed at 84900.71 points, down 331.21 points or 0.4%.

 

Strategists at HSBC Global said, "the worst is over" in terms of earnings slowdown. After a year of downgrades, earnings per share of Indian companies for the current financial year are now seeing modest upgrades, led by oil & gas, property, technology and financial sector companies. "Management across sectors including banks, tech, consumers, cement and autos guided for a recovery in the upcoming quarters," HSBC Global said. "This supports our overweight (rating) on Indian equities," it said.

 

HSBC Global believes that the risk of downgrades in earnings per share for 2026-27 (Apr-Mar) is limited. "Financials are the biggest contributor to the recovery, as margins have bottomed and signs of an uptick in loans are now visible," it said.  End

 

Edited by Ashish Shirke

 

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