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Informist, Tuesday, Dec. 9, 2025

 

By Gopika Balasubramanium 

 

MUMBAI – The benchmark indices are expected to consolidate in the near term and investors are likely to take cues from the global market ahead of the outcome of the US Federal Reserve's monetary policy meeting. Some analysts expect the recovery in the broader market indices to continue in the near term. The movement of the rupee will continue to be in focus after the currency's recent waves of record lows. Updates on India-US trade deal will also be closely monitored by the Street.

 

"Global sentiment was further pressured by surging Japanese bond yields and expectations of BoJ (Bank of Japan) tightening in its upcoming December meeting," Vinod Nair, head of research at Geojit Investments, said in a note. "While the markets largely anticipate a 25-bps (basis points) rate cut by the Fed and a rate hike by the BoJ, forward guidance for 2026 will be critical," he added. "In the near term, central bank commentary, currency movement, and FII flows will steer sentiment, while domestic macro resilience is expected to provide a cushion against downside risks," Nair said.

 

Tuesday, the Nifty 50 settled at 25839.65, down 120.90 points or 0.5%. The BSE Sensex closed at 84666.28 points, down 436.41 points or 0.5%. The 50-stock index closed below its crucial support of 25850 points, a breach of which was seen as leading to further downside. The India VIX, or the volatility index, ended nearly 2% lower at 10.9525, after rising 8% in the previous session. The index rose as much as 7% to an intraday high of 11.8825 soon after opening but started falling towards the end of the session.

 

"The underlying trend of Nifty (50) remains weak," Nagaraj Shetti, senior technical research analyst at HDFC Securities, said in a note. "However, any sustainable bounce back from near the crucial support of 25700 could possibly open more upside towards 26100-26200 levels in the near term," he added. The support is at 25700 points, he said.

 

Investors will focus on any updates on India-US trade deal as reports suggest that US trade negotiators are set to visit India for a two-day discussion starting Wednesday. The US team is led by the newly appointed Deputy US Trade Representative Rick Switzer and chief negotiator for the India deal Brendan Lynch, The Indian Express reported. While this development is encouraging especially after months of no progress, hopes are slightly marred as the US president has warned of fresh tariffs on rice imports from India.

 

The rupee Tuesday ended at 89.8750, after hitting a high of 89.8375 a dollar during the session. The currency had closed at 90.0700 against the greenback on Monday. The rupee has made a major rebound after hitting lows of 90.4225 recently. "However, despite this wanted reprieve, the Rupee is not yet out of the woods, as the fundamental imbalance persists with the demand for the dollar continues to outstrip its available supply," Dilip Parmar, senior research analyst at HDFC Securities said in a note.  End

 

Edited by Ashish Shirke

 

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