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Informist, Wednesday, Dec. 31, 2025

 

By Arundathi A R

MUMBAI – Benchmark equity indices are likely to trade sideways to positive on Thursday, on expectations of better December-quarter earnings and the upcoming Union Budget announcements. Sentiment has improved following Wednesday's gains, but further gains are likely to be driven by earnings growth, analysts said.

 

"Small-cap indices are expected to give better returns in the high-teens in 2026 after a vast 15% underperformance shown by them in 2025," Mangesh Bhadang, assistant vice president, equity, in the family office of Allcargo group, said. The December quarter results will dictate the market direction for 2026, he said. 

 

"Post the Oct-Dec results, the Union Budget is expected to give direction for 2026, and some policy push from the Budget side is seen to give a positive momentum for the market," Bhadang said. He expects foreign investments to turn positive after the March quarter earnings.

 

On Wednesday, the Nifty 50 index closed higher after ending lower for four straight sessions, and the Sensex closed in the green after falling for five straight sessions. The Nifty 50 settled at 26,129.60 points, up 190.75 points, or 0.7%. The BSE Sensex closed at 85220.60 points, up 545.52 points, or 0.6%. Analysts pegged the resistance level for Nifty 50 at 26200-26300 and support at 26000-25850.

 

"The index (Nifty 50) in the entire consolidation has not breached those 50-DMA (50-day moving average) supports. So, that is right now placed around 25,840 and it remains the crucial support for the Nifty," Ruchit Jain, head of technical research at Motilal Oswal, said. He sees the overall bias remaining sideways to positive, with the Nifty 50 index trading above this crucial support level.

 

"The overall market outlook remains positive, with any declines providing advantageous opportunities for buyers," Osho Krishan, chief manager of technical and derivative research at Angel One, said in a note. "Consequently, it is advisable to implement a buy-on-dip strategy in the current market conditions," he said. 

 

Market participants await the release of goods and services tax collections for December on Thursday. Analysts expect the data to show an improvement in demand and to help cover tax-collection shortfalls. End

 

Edited by Saji George Titus

 

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