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Informist, Monday, Dec. 29, 2025

By Arundathi A R

MUMBAI – Benchmark equity indices are seen rangebound on Tuesday amid a lack of fresh triggers. Even though the outlook for 2026 remains constructive, depreciation in the rupee, delay in India-US trade deal, and outflow of foreign investment are expected to impact sentiment in the Indian market. Meanwhile, Tuesday's session is expected to be volatile on the expiry of the weekly derivatives contract of the Nifty 50. 

"In an environment of global trade anxiety and a weakening rupee, investors are likely to favour large-cap stocks for their relative safety and stronger earnings visibility," Vinod Nair, head of research at Geojit Investments, said in a note. 

On the earnings front, analysts see the coming year to be constructive. "Market should be giving early double-digit return next year as the earnings start to improve gradually," Narendra Solanki, head of fundamental research at Anand Rathi Investment Services, said. He also expects lower inflation, lower interest rates, and higher capital expenditure by the government to support the earnings growth in the upcoming year.

Consumption, hospitality, and automobiles are expected to perform well in 2026. "Capital goods should also start performing well, even though in terms of valuations the sector is not really at a decent position," said Solanki.

The analyst sees the India-US trade deal to be a win-win situation and is expected to get signed by March. "I think in January, markets will be clearly taking stock of the situation and the timelines of the trade deal," he said.

Monday, the benchmark equity indices closed lower, extending losses from Friday's session. The Nifty 50 index closed lower for the third straight session and the Sensex closed lower for the fourth straight session. The Nifty 50 settled at 25942.10, down 100.20 points, or 0.4%. The BSE Sensex closed at 84695.54, down 345.91 points, or 0.4%. Analysts pegged the resistance level for Nifty 50 at 26000-26100 and support at 25900.

"...Nifty is actually sustaining below the 26000 level, which is not a good sign for our markets," Sundar Kewat, technical and derivatives analyst at Ashika group, said. "But, there are a few option data points which are telling me that the 25900 level still remains an important support level. I think the 25900 will be defended tomorrow (Tuesday)."

India's industrial output, as measured by the Index of Industrial Production, grew at a two-year-high pace of 6.7% in November, according to the data by statistics ministry released post market hours. The rise in headline industrial output was led by a two-year-high growth in the manufacturing sector, and double-digit rise in capital goods, construction goods, and consumer durables sectors.  End

Edited by Deepshikha Bhardwaj

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