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Informist, Wednesday, Nov. 26, 2025

 

By Gopika Balasubramanium

 

MUMBAI – For the second time in five sessions, the headline indices are a hair's breadth away from record highs. While the market has shrugged off the recent bout of weakness, concern about the depreciating rupee persists. Analysts acknowledged that optimism in the international market, especially the expectations of an interest rate cut by the US Federal Reserve, and softer crude oil prices are having an impact on the domestic indices.

 

When the indices closed lower in the past three trading sessions, technical analysts had said it was important for the Nifty 50 to reach 26000 points and sustain itself above that level. Tuesday, when the 50-stock index fell below 25900 points, its erstwhile second support level, analysts had expected the indices to come under selling pressure and consolidate in the near term. Some analysts had also attributed the fall to the expiry of monthly derivative contracts, where investors unwound long positions. However, Wednesday, the indices recovered and rose close to their record highs.

 

"The trend looks positive, shrugging off the recent weak sentiment," said Rupak De, senior technical analyst at LKP Securities, in a note. "In the short term, the index may remain positive with the potential to reach 26,426/26,580," De said, adding that 26070 points is likely to act as the support.

 

Wednesday, the Nifty 50 ended at 26205.30 points, up 320.50 points or 1.2%. The 50-stock index rose as high as 26215.15 points intraday, a touch below the one-year high of 26246.65 points it hit last week. The Nifty 50 is now just 72 points away from its record high of 26277.35 points, hit on September last year.

 

"...the Reserve Bank of India (RBI) is widely anticipated to implement a 25-basis point rate cut in December, supported by moderating inflation and a dovish stance," Vinod Nair, head of research, Geojit Investments Ltd., said in a note. "Furthermore, increasing optimism surrounding a potential truce between Russia and Ukraine is enhancing risk appetite, fostering a positive outlook for the upcoming year."

 

Analysts have also shrugged off the short-term weakness seen earlier in the market and are now building hopes for new all-time highs in the next few sessions. Earlier, there were strong views that the indices would end 2025 at a new high. Some research heads had also said that a new all-time high is likely but only after concrete signs of earnings recovery.

 

While the depreciating rupee is a positive for sectors that make their revenue in dollars, such as information technology and pharmaceutical companies, analysts are also positive on earnings recovery by consumer-facing sectors such as fast-moving consumer goods, consumer durables, and automobiles. These sectors are seen to benefit the most from recent policy measures and tax cuts.   End

 

Edited by Rajeev Pai

 

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