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Informist, Wednesday, Jan. 7, 2026

 

By Arundathi A R

 

MUMBAI – Analysts expect the market to remain range-bound in the coming days. The overall trend is likely to be downward, although some select stocks are seen performing well. Investors are likely to remain cautious ahead of corporate financial results for the December quarter. Analysts are divided on the outlook for selling by foreign investors.

 

On Wednesday, domestic headline indices closed lower for the third consecutive session. The Nifty 50 index ended at 26140.75 points, down 37.95 points or 0.1%. The BSE Sensex closed at 84961.14 points, down 102.20 points or 0.1%. Analysts pegged resistance for Nifty 50 at 26300 points and support is seen at 26000 points.

 

Analysts expect Brent crude oil prices to fall further due to geopolitical developments in Venezuela. "The crude oil price trend is expected to remain on the downside as the levers of geopolitical events are dissipating," said Vinit Bolinjkar, head of research at Ventura Securities. He added that crude oil availability is likely to increase once the crisis in Venezuela eases, which could put mild pressure on prices.

 

Analysts are divided on their outlook for selling by foreign investors. Some expect the intensity of selling by foreign institutional investors to ease in 2026. Others expect selling to continue, citing rising US yields and rupee depreciation. This could erode portfolio returns and lead to continued outflows from the Indian market, Bolinjkar said.

 

On the earnings front, brokerage Nuvama Institutional Equities expects customer sentiment in the automobile sector to remain positive across segments. According to the brokerage, this sentiment is aided by improvement in affordability, a good pace of vehicle launches, and adequate availability of financing. The brokerage expects an on-year revenue growth of 22% for automobile companies under its coverage, aided by robust volumes and improved realisations.

 

Nuvama Institutional Equities in an earnings preview note said it expects the Nifty 50 companies to report a net profit growth of only 1% on year in the December quarter. The brokerage sees the growth in revenue of Nifty 50 companies at 5% year-on-year for the reporting quarter.

 

Earnings per share of Nifty 50 companies are likely to show flat on-year growth in the quarter under review, Nuvama said. This flat growth could lead to downgrades in consensus estimates for 2025–26 (Apr–Mar) and FY27, it added.  End

 

Edited by Tanima Banerjee

 

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