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Informist, Monday, Dec. 1, 2025

 

By Gopika Balasubramanium

 

MUMBAI – India's headline indices are likely to move in a thin range in the coming sessions after they hit their respective record highs. Some analysts expect investors to book profit, while others said the investors would use every dip as a point to enter. The rupee falling to a fresh record low because of delay in US-India trade deal and muted trade flows will also likely impacted market sentiment, some analysts said. Analysts said this week volatility because of expiry of weekly derivatives contracts of Nifty 50 would be relatively low as it is the first week of December series.

 

"In the near term, markets may remain range-bound as participants await clarity on the potential rate-cut trajectory and developments on the trade deal front," Siddhartha Khemka, head of research – wealth management, Motilal Oswal Financial Services, said. The Reserve Bank of India's rate-setting committee has maintained status quo on interest rates since June after cutting the repo rate cut by 100 basis points since February.

 

The Nifty 50 Monday closed at 26175.75 points, down 27.20 points or 0.1%. The 50-stock index rose to a record high of 26325.80 points when the market opened. The BSE Sensex closed the day at 85641.90 points, down 64.77 points or 0.1%. During the day, the 30-stock index touched a record high of 86159.02 points. The indices closed lower mainly due to rupee sliding to a record low during the session. Some analysts said investors liquidated positions to hedge against the currency risk.

 

Technical analysts expect the Nifty 50 to find support at 26100 points and said the 50-stock index must hold this level for the sentiment to remain positive. Immediate resistance for the index is at 26400-26700 points. "A follow through weakness below 26100 will signal some consolidation in the range of 26300-25800 in the coming sessions," Bajaj Broking Research. "Immediate support is placed at the last week breakout area of 26000-25800, sustaining above the same will keep the bias positive," the brokerage added. 

 

On valuation front, the Nifty 50 currently trades at a trailing price-to-earnings of 22.5–23.0 times, said Hitesh Tailor, research analyst at Choice Equity Broking Pvt. Ltd. Based on an expected 10–15?rnings growth over the next year, the one-year forward price-to-earnings is estimated to moderate to 19–21 times, he added. This implies that while markets look expensive at face value, the valuation framework becomes more comfortable if earnings trajectory holds, he said.

 

Tailor expects information technology, financial services, state-owned banks, and automobile continue to be the top-moving sectors in December. IT sector is seen benefitting from global digital transformation trends and improving risk appetite, he said and added that financial services and government-owned banks remain supported by stable credit growth and expectations of ease in repo rates. "The Auto sector is also showing strength due to steady demand and its ongoing cyclical recovery," Tailor said.  End

 

Edited by Ashish Shirke

 

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