More Stories

Informist, Monday, Jan. 5, 2026

 

By Arundathi A R

 

MUMBAI – Analysts expect bullish sentiments to continue in the near-term despite benchmark equity indices ending lower Monday on profit booking. Analysts said the US attack on oil-rich Venezuela had little impact on Indian equity markets, with the focus remaining on December-quarter earnings.

 

On Monday, the Nifty 50 index closed lower after rising in the previous three sessions. The Nifty 50 ended at 26250.30 points, down 78.25 points, or 0.3%. The BSE Sensex closed at 85439.62 points, down 322.39 points, or 0.4%. Analysts pegged the resistance level for Nifty 50 at 26350-26400 and support at 26150-26100.

 

Among the sectors, the banking sector is expected to see meaningful growth, Christy Mathai, equity fund manager at Quantum Asset Management Co., said. Mathai expects the rate cuts to act as tailwinds for the sector.

 

"Bank net interest margins are anticipated to remain largely stable in the third quarter," Systematix Institutional Equities said in a report. The brokerage expects a positive impact of rate reductions on deposits to become evident from the December quarter onwards, despite a continued decline in the yield on advances. The brokerage expects banks' profitability to increase, aided by sustained sequential advances growth, higher fee income growth, and lower credit costs.

 

Mathai of Quantum Mutual Fund expects crude oil prices to remain at current levels, with pricing capped. "... the pipeline companies, we think, there could be a volume uptick, because the (natural gas) prices are headed lower," he said.

 

"In the medium term, however, a US-led push to revive Venezuela's oil industry could eventually add barrels back to the market, particularly if it encourages American energy firms to invest in a country that holds more than 300 billion barrels or roughly 20% of the world's oil reserves," Kaynat Chainwala, assistant vice president of commodity research at Kotak Securities, said in a note.

 

Mathai said earnings-per-share growth in some competing nations is higher than in India, and that domestic valuations are not as cheap. He expects foreign investors to continue selling for these two reasons.

 

Broking firm HSBC Global Investment Research expects revenue growth of information technology companies to recover by 4–5% in 2026–27 (Apr-Mar), leading to high-single-digit earnings per share growth. "(IT) Stocks (are) up 15% from bottom but could still perform in line with market in 2026," the brokerage said in the report. The Nifty IT index ended the session 1.4% lower Monday. The sectoral index ended down after closing higher in the previous two sessions.  End

 

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.