Domestic markets are likely to open marginally lower on Tuesday, amid mixed global cues. Gift Nifty at 26,160 against the Nifty futures value of 25,180 indicates a loss of 20 points for Nifty at the open. Analysts expect the market to move in a range, with stock and sector-specific action.
Ponmudi R, CEO of Enrich Money, said: Indian equities are set for a steady yet cautious start, with some mild profit-taking likely after the recent strong rally. “The broader undertone, however, remains positive, supported by robust consumption trends during the ongoing festive season — particularly in the auto and consumer durables segments. Recent GST rate cuts and the RBI’s growth-supportive measures continue to uplift the overall market sentiment, he said.
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Meanwhile, the India VIX — a key gauge of market volatility — inched up by 1.32 per cent to 10.19, indicating subdued volatility despite lingering uncertainty.
Amruta Shinde, Technical & Derivatives Analyst, Choice Broking, said: In the derivatives segment, open interest (OI) data shows the highest call writing at the 25,100 strike, while maximum put OI was concentrated at the 25,000 level. This set-up suggests strong resistance near 25,100 in the near term.
Meanwhile, the focus has shifted to India Inc’s Q2 performance and business outlook.
MOTILAL OSWAL Financial Services said its Universe/Nifty-50 earnings are expected to grow 9%/6% YoY in 2QFY26. “Ex-Financials, we expect earnings to increase 16%/10% YoY, whereas ex-Metals and O&G, we project the earnings to rise 6%/4% YoY for the quarter,” it said.
According to the domestic brokerage, overall earnings growth is expected to be modest and will be anchored by O&G (+25% YoY), NBFC-Lending (+21%), Telecom (loss-to-profit), Metals (+10%), Technology (+6%), Cement (+62%), Capital Goods (+14%), and Healthcare (+10%). These sectors are likely to contribute 95 per cent of the incremental YoY accretion in earnings. Conversely, both private banks (-7%) and PSBs (-7%) are likely to contribute adversely to earnings.
“Further, we expect FY26 earnings to grow 12% YoY and 9% YoY for the MOFSL Universe and Nifty-50, respectively,” it added, saying: “We cut our FY26E/FY27E Nifty EPS by 1.1%/ 1.7% and expect it to grow 8%/16% YoY to Rs 1,096/1,274. The metals, cement, BFSI, auto, and technology sectors have contributed to the majority of reduction in our earnings estimate.”
Meanwhile, analysts expect domestic institutions will continue to support equities despite an exit by foreign portfolio investors.