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Informist, Thursday, Oct. 16, 2025

 

By Gopika Balasubramanium

 

MUMBAI – Indian equity indices are expected to rise more in the coming sessions, buoyed by expectations of a rate cut by the Reserve Bank of India in the December meeting, appreciation of the rupee, and hopes of concluding the trade deal with the US. The Nifty 50 closed at a near three-month high of 25585.30 points on Thursday and analysts expect the momentum to continue. Focus will also continue on the September quarter earnings, with Reliance Industries, which holds an over 8% weightage in the Nifty 50 index, due to announce results Friday.

 

Improved macroeconomic factors, including expectations of an interest rate cut by the RBI, along with consumption revival, have improved inflows from foreign investors, said Ankit Dharamshi, associate director and fund manager at RNM India. "Further US debt has piled up to a record high and hence investors will be looking to diversify and reduce US exposure for the time being," he said. Asked whether these gains will be sustained, he said: "Mostly yes, provided Q2 (Jul-Sept) earnings are not disappointing significantly and the US-India talks do not derail."

 

Expectations of an interest rate cut have strengthened with most members of the rate-setting committee holding a dovish stance, analysts said. In the minutes of the central bank's October meeting, released Wednesday, all six members acknowledged the sharp fall in inflation had opened up space for further monetary policy easing. Two members highlighted that the case for cutting rates had strengthened since the August policy, and were in favour of changing the policy stance to 'accommodative' from 'neutral'.

"Expectations of a rate cut in December are building," an analyst tracking the banking sector at a foreign brokerage said. The appreciation in the rupee is also a positive, the analyst said. The rupee ended at a one-month high of 87.82 against the dollar Thursday, extending gains from Wednesday. 

 

Market sentiment has also turned positive on hopes of a potential trade deal between New Delhi and Washington after US President Donald Trump's comments that India has assured it will not buy oil from Russia. However, the Indian government responded guardedly to Trump's statement. "India is a significant importer of oil and gas. It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario. Our import policies are guided entirely by this objective," the Ministry of External Affairs said in a statement. 

 

On Thursday, the Nifty 50 ended at 25585.30 points, up 261.75 points or 1.0%, a near three-month high. During the session, the Nifty 50 hit an intraday high of 25625.40 points, 2.6% away from its historic high of 26277.35 points touched in September last year. The index narrowly missed breaching 25669.35 points, the highest level so far in 2025. Most technical analysts are bullish on the index and see the rally continuing, though some expect it to be rangebound. Some analysts said that the market is in temporary overbought conditions. Technical analysts expect the Nifty 50 to find support at 25450-25350 points and face immediate resistance at 25670 points. 

Investors will focus on the earnings of large-cap companies such as JSW Steel and Reliance Industries, due Friday. Other companies that will declare results on Friday include Havells India, JSW Energy, REC, AU Small Finance Bank, Bank of India, Dixon Technologies (India), and Hindustan Zinc. The market will also react to the earnings of Wipro and Infosys, which came in post-market hours on Thursday.  End

 

Edited by Saji George Titus

 

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