Benchmark indices extended their winning streak for a fourth straight session on Tuesday, though gains were capped by profit booking in the latter half of the day as investors turned cautious following the World Bank’s latest economic outlook.
The S&P BSE Sensex slipped 136.63 points to close at 81,926.75, while the NSE Nifty50 ended 30.65 points higher at 25,108.30. Broader market indices also ended the session largely positive, supported by easing volatility and sustained optimism around the upcoming quarterly earnings season.
Analysts said a combination of factors—including robust Q2 business updates, festive season demand and the government’s GST 2.0 rollout—has fuelled positive sentiment among investors in recent sessions. However, concerns over global headwinds and fresh U.S. tariff hikes on Indian goods have tempered the rally.
Ponmudi R, CEO of Enrich Money, a Sebi-registered trading and wealth tech firm, said the market’s momentum faded after the World Bank revised its GDP growth forecast for India. “Indian markets opened on a positive note but lost momentum later in the day after the World Bank projected India’s GDP growth for the current financial year at 6.5%, below the Reserve Bank of India’s 6.8% estimate. The downgrade was attributed to higher-than-expected US tariffs on Indian exports,” he explained.
“The weaker outlook prompted short-term traders to book profits, leading to a loss of momentum in the second half of the session,” he added. The World Bank also trimmed its FY27 growth forecast by 20 basis points to 6.3%.
From a technical perspective, the Nifty’s uptrend remains intact despite some selling pressure.
According to Vatsal Bhuva, Technical Analyst at LKP Securities, the index faced resistance near the 25,200–25,250 zone. “After three consecutive confident closings, Nifty faced selling pressure near its resistance zone of 25,200–25,250 on Tuesday’s session, indicating that bulls might take a pause, leading to a possible short-term consolidation,” he said.
“However, as long as the index sustains above 24,900 levels, where its 50-day EMA is placed, the outlook remains positive. On the derivatives front, both call and put writers were active, with notable open interest additions at the 25,000 put and 25,200 call strikes,” Bhuva added.
He expects Nifty to trade within a narrow range of 24,950–25,300 in the near term, with support at 24,950–25,000 and resistance around 25,250–25,300.
Going forward, investors are likely to keep a close eye on the upcoming Q2 earnings season, which could set the tone for near-term market direction. Domestic triggers such as festive demand and corporate results may provide support, but persistent concerns over U.S. trade policy and global growth could keep sentiment in check.
Despite Tuesday’s marginal retreat, analysts remain confident about India’s medium-term growth story, with sustained domestic demand and fiscal measures expected to keep equities on firm ground through the festive quarter.
