NIFTY Energy

In absolute terms, large-cap valuations appear reasonable when compared to their own long-term averages, offering a better risk-reward balance, said Rohit Sarin.

shorts/business/daily-voice-rohit-sarin-expects-financials-consumer-discretionary-sectors-to-drive-equity-markets-in-2026

Rohit Sarin, the co-founder of Client Associates, expects the financials and consumer discretionary sectors to drive equity markets in 2026.

"These sectors are well-positioned to benefit from improving domestic demand, credit growth normalization, and a potential recovery in consumption trends," he said in an interview to Moneycontrol.

According to him, the large-cap IT stocks are expected to retrace their value in 2026 as demand stabilises and global macro conditions improve.

Do you believe the dollar–rupee has entered the final phase of peaking, and that India’s macroeconomic fundamentals are improving?

India’s macroeconomic fundamentals have been in good shape for some time now, particularly with respect to inflation management, the strength of forex reserves, and a relatively contained current account deficit. These factors provide a strong underlying cushion to the economy and help absorb external shocks.

While the depreciation of the INR versus the USD in CY2025 has been relatively higher in the near term, it remains broadly in sync with long-term historical averages. From that perspective, the recent currency movement does not appear disorderly or structurally concerning. It is also plausible that the RBI has allowed the rupee to find its near-term equilibrium, especially to ensure that India’s export competitiveness is preserved in an environment where global trade dynamics are evolving and US tariff-related uncertainties persist. Overall, the currency movement seems more tactical than a reflection of weakening fundamentals.

What is your preference for 2026: Large-cap stocks or mid- and small-cap stocks?

Our preference for 2026 is tilted toward large-cap stocks. This is primarily because large caps are currently more favourably valued relative to mid- and small-cap stocks. In absolute terms as well, large-cap valuations appear reasonable when compared to their own long-term averages, offering a better risk-reward balance.

Additionally, large caps tend to provide greater earnings visibility, balance sheet strength, and resilience during periods of global uncertainty. Given the valuation divergence that has built up over recent years, large caps appear better positioned to benefit from any mean reversion in market leadership.

Do you expect large-cap IT stocks to make a strong comeback in 2026 after a prolonged period of underperformance? Among IT stocks, do mid-cap names offer a better opportunity, particularly as a play on rupee depreciation?

Large-cap IT companies are high-quality businesses run by competitive management teams, with an established track record of long-term performance across different market cycles. Despite the prolonged phase of underperformance, these companies continue to demonstrate strong execution capabilities, client diversification, and balance sheet strength.

We expect large-cap IT stocks to retrace their value in 2026 as demand stabilizes and global macro conditions improve. While rupee depreciation can provide some earnings tailwinds across the sector, our confidence remains higher in large-cap names due to their scale, consistency, and ability to navigate cycles effectively.

Despite ongoing challenges such as global growth concerns, geopolitical tensions, and uncertainty around potential Trump-era policy positions, do you expect the market to remain in a consolidation phase yet still deliver a 10–15 percent rally next year?

With Indian markets having time-corrected in 2025 and the INR now priced attractively against the USD, we expect mean reversion to play out in 2026. If domestic consumption begins to pick up in the first two quarters of 2026, it could act as a key trigger for improved earnings momentum.

Under such conditions, Indian markets are likely to attract higher allocations from foreign institutional investors, even if global volatility persists. This creates room for markets to remain range-bound for parts of the year while still delivering a reasonable upside over the full period.

Which sectors do you see leading earnings growth and driving equity market upside going forward?

We expect the financials and consumer discretionary sectors to drive equity markets in 2026. These sectors are well-positioned to benefit from improving domestic demand, credit growth normalization, and a potential recovery in consumption trends. Their earnings visibility and linkage to India’s internal growth engine make them central to the broader market narrative.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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Daily Voice: Rohit Sarin expects financials, consumer discretionary sectors to drive equity markets in 2026

Rohit Sarin, the co-founder of Client Associates, expects the financials and consumer discretionary sectors to drive equity markets in 2026.

&quot;These sectors are well-positioned to benefit from improving domestic demand, credit growth normalization, and a potential recovery in consumption trends,&quot; he said in an interview to Moneycontrol.

According to him, the large-cap IT stocks are expected to retrace their value in 2026 as demand stabilises and global macro conditions improve.

Do you believe the dollar–rupee has entered the final phase of peaking, and that India’s macroeconomic fundamentals are improving?

India’s macroeconomic fundamentals have been in good shape for some time now, particularly with respect to inflation management, the strength of forex reserves, and a relatively contained current account deficit. These factors provide a strong underlying cushion to the economy and help absorb external shocks.

While the depreciation of the INR versus the USD in CY2025 has been relatively higher in the near term, it remains broadly in sync with long-term historical averages. From that perspective, the recent currency movement does not appear disorderly or structurally concerning. It is also plausible that the RBI has allowed the rupee to find its near-term equilibrium, especially to ensure that India’s export competitiveness is preserved in an environment where global trade dynamics are evolving and US tariff-related uncertainties persist. Overall, the currency movement seems more tactical than a reflection of weakening fundamentals.

What is your preference for 2026: Large-cap stocks or mid- and small-cap stocks?

Our preference for 2026 is tilted toward large-cap stocks. This is primarily because large caps are currently more favourably valued relative to mid- and small-cap stocks. In absolute terms as well, large-cap valuations appear reasonable when compared to their own long-term averages, offering a better risk-reward balance.

Additionally, large caps tend to provide greater earnings visibility, balance sheet strength, and resilience during periods of global uncertainty. Given the valuation divergence that has built up over recent years, large caps appear better positioned to benefit from any mean reversion in market leadership.

Do you expect large-cap IT stocks to make a strong comeback in 2026 after a prolonged period of underperformance? Among IT stocks, do mid-cap names offer a better opportunity, particularly as a play on rupee depreciation?

Large-cap IT companies are high-quality businesses run by competitive management teams, with an established track record of long-term performance across different market cycles. Despite the prolonged phase of underperformance, these companies continue to demonstrate strong execution capabilities, client diversification, and balance sheet strength.

We expect large-cap IT stocks to retrace their value in 2026 as demand stabilizes and global macro conditions improve. While rupee depreciation can provide some earnings tailwinds across the sector, our confidence remains higher in large-cap names due to their scale, consistency, and ability to navigate cycles effectively.

Despite ongoing challenges such as global growth concerns, geopolitical tensions, and uncertainty around potential Trump-era policy positions, do you expect the market to remain in a consolidation phase yet still deliver a 10–15 percent rally next year?

With Indian markets having time-corrected in 2025 and the INR now priced attractively against the USD, we expect mean reversion to play out in 2026. If domestic consumption begins to pick up in the first two quarters of 2026, it could act as a key trigger for improved earnings momentum.

Under such conditions, Indian markets are likely to attract higher allocations from foreign institutional investors, even if global volatility persists. This creates room for markets to remain range-bound for parts of the year while still delivering a reasonable upside over the full period.

Which sectors do you see leading earnings growth and driving equity market upside going forward?

We expect the financials and consumer discretionary sectors to drive equity markets in 2026. These sectors are well-positioned to benefit from improving domestic demand, credit growth normalization, and a potential recovery in consumption trends. Their earnings visibility and linkage to India’s internal growth engine make them central to the broader market narrative.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Artists at Serendipity Arts Festival use text as integral part of their artworks, Art explores text via posters, poetry, recipes, embroidery, and installations., Works explore history, social issues, and challenge traditional meaning-making.

* Artists at Serendipity Arts Festival use text as integral part of their artworks
* Art explores text via posters, poetry, recipes, embroidery, and installations.
* Works explore history, social issues, and challenge traditional meaning-making.

At the Serendipity Arts Festival in Goa, artists like Jayasimha Chandrashekar and others used text as a central element in their works, exploring themes from history and identity to social issues, and challenging traditional roles of words in art.

shorts/lifestyle/text-is-dead-long-live-the-text-how-indian-artists-are-engaging-with-the-written-word-and-how-it-makes-meaning

The domestic equity benchmarks settled lower on Friday as thin year-end trading volumes and caution ahead of the earnings season led to broad-based profit booking.

The Sensex fell for the third straight session, dropping 367.25 points or 0.43 percent to close at 85,041.45. During the day, it declined as much as 470.88 points or 0.55 percent to 84,937.82.

The broader Nifty slipped 99.80 points or 0.38 percent to settle at 26,042.30, marking its second consecutive day of losses.

Market participants cited foreign fund outflows and the absence of major domestic triggers for the cautious sentiment.

Market experts said the Nifty could move towards 26,250 as long as the 25,900 level holds, despite thin year-end trading volumes.

Rajesh Bhosale, Equity Technical Analyst at Angel One, said the index continued to maintain a higher-top, higher-bottom structure on the intraday charts.

"In such an environment, traders should avoid reacting to short-term noise and follow a buy-on-dips approach while booking profits near higher levels. On the downside, immediate support is seen at 25,900, while 25,700 remains a key level for the near-term trend. On the upside, the 26,250–26,350 zone is a major hurdle, beyond which the Nifty could gain fresh momentum," he said.

Rupak De, Senior Technical Analyst at LKP Securities, said the index remained weak after slipping below the 21-period exponential moving average on the hourly chart.

"The RSI is in a bearish crossover and trending lower, indicating weakening momentum. The Nifty found support near the 26,000 level during the session. The trend may improve and retrace towards 26,200 and higher if 26,000 holds decisively, but a sustained move below this level could lead to further weakness," he said.

During the session, investors booked profits in information technology, real estate and energy stocks, while gains in select banking and metal shares helped limit the downside.

In the holiday-shortened week, the Sensex gained 112.09 points or 0.13 percent, while the Nifty rose 75.9 points or 0.29 percent.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Technical View: Nifty likely to hit 26,250 as long as 25,900 holds amid thin year-end volumes, say experts

The domestic equity benchmarks settled lower on Friday as thin year-end trading volumes and caution ahead of the earnings season led to broad-based profit booking.

The Sensex fell for the third straight session, dropping 367.25 points or 0.43 percent to close at 85,041.45. During the day, it declined as much as 470.88 points or 0.55 percent to 84,937.82.

The broader Nifty slipped 99.80 points or 0.38 percent to settle at 26,042.30, marking its second consecutive day of losses.

Market participants cited foreign fund outflows and the absence of major domestic triggers for the cautious sentiment.

Market experts said the Nifty could move towards 26,250 as long as the 25,900 level holds, despite thin year-end trading volumes.

Rajesh Bhosale, Equity Technical Analyst at Angel One, said the index continued to maintain a higher-top, higher-bottom structure on the intraday charts.

&quot;In such an environment, traders should avoid reacting to short-term noise and follow a buy-on-dips approach while booking profits near higher levels. On the downside, immediate support is seen at 25,900, while 25,700 remains a key level for the near-term trend. On the upside, the 26,250–26,350 zone is a major hurdle, beyond which the Nifty could gain fresh momentum,&quot; he said.

Rupak De, Senior Technical Analyst at LKP Securities, said the index remained weak after slipping below the 21-period exponential moving average on the hourly chart.

&quot;The RSI is in a bearish crossover and trending lower, indicating weakening momentum. The Nifty found support near the 26,000 level during the session. The trend may improve and retrace towards 26,200 and higher if 26,000 holds decisively, but a sustained move below this level could lead to further weakness,&quot; he said.

During the session, investors booked profits in information technology, real estate and energy stocks, while gains in select banking and metal shares helped limit the downside.

In the holiday-shortened week, the Sensex gained 112.09 points or 0.13 percent, while the Nifty rose 75.9 points or 0.29 percent.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Live: Nifty slips below 26,100-mark but ends the week marginally higher | Closing Bell

Sensex down 367 points, Nifty drops 99 points due to profit booking and FII selling, Rupee fell to 89.94 per USD due to fund outflows and crude price recovery., Crude oil prices rose globally; profit booking seen across key sectors

* Sensex down 367 points, Nifty drops 99 points due to profit booking and FII selling
* Rupee fell to 89.94 per USD due to fund outflows and crude price recovery.
* Crude oil prices rose globally; profit booking seen across key sectors

Sensex fell 367 points and Nifty dropped 99 points on Friday amid profit booking, FII selling, rupee weakness, and rising crude prices. Despite this, both indices gained 0.4% for the week, ending a three-week losing streak, led by metals and US growth optimism.

shorts/business/sensex-declines-200-pts-nifty-below-26-100-fii-selling-among-key-factors-behind-market-decline

* Sensex down 367 points, Nifty drops 99 points due to profit booking and FII selling
* Rupee fell to 89.94 per USD due to fund outflows and crude price recovery.
* Crude oil prices rose globally; profit booking seen across key sectors

The benchmark equity indices Sensex and Nifty settled lower on Friday amid profit booking in a holiday-truncated week, with sustained selling by foreign institutional investors (FIIs) weighing on sentiment.

Falling for the third consecutive day, the Sensex dropped 367.25 points or 0.43 percent to settle at 85,041.45. During the day, it tanked 470.88 points or 0.55 percent to 84,937.82.

The Nifty declined by 99.80 points or 0.38 percent to 26,042.30, registering its second day of decline.

Despite the subdued trade on Friday, Nifty and Sensex are up about 0.4 percent each this week, poised to snap a three-week losing run, led by metals on a pick-up in demand in top consumer China, weakness in the US dollar and a stable U.S. growth outlook.
<h3>Key factors behind market decline</h3>
1) Rupee decline: The rupee depreciated 23 paise to 89.94 against the US dollar, dragged by foreign fund outflows and a recovery in crude oil prices. Forex traders said a negative trend in domestic equities, dollar demand from importers and uncertainty over trade deals further dampened sentiment.

At the interbank foreign exchange, the rupee opened at 89.84 against the dollar but moved lower to 89.94, compared to its previous close of 89.71 on Wednesday. Forex and equity markets were closed on Thursday on account of Christmas.

2) FII selling: The foreign institutional investors sold shares worth Rs 1,721.26 crore on Wednesday, marking the third straight session of net selling.

"Higher US GDP growth of 4.3% for the third quarter of 2025 is imparting resilience to the US market. The high and rising profitability of US companies, including the AI ones, might nudge other FIIs, particularly the fleet footed hedge funds, to increase selling in India in the near-term," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

<a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-indicates-a-muted-start-asian-markets-trade-higher-liveblog-13742638.html" target="_blank">Stock Market LIVE Updates</a>

3) Crude rises: In the global markets, crude oil prices edged higher after the US ordered increased economic pressure on Venezuelan oil shipments and carried out airstrikes against Islamic State militants in northwest Nigeria. Brent crude futures rose 0.4 per cent to USD 62.48 a barrel, while US West Texas Intermediate crude gained or 0.4 percent to USD 58.58 a barrel.

4) Profit booking: Profit booking was seen across the key sectors. <a href="https://www.moneycontrol.com/india/stockpricequote/finance-leasinghire-purchase/shriramfinance/STF">Shriram Finance</a> and <a href="https://www.moneycontrol.com/india/stockpricequote/pharmaceuticals/sunpharmaceuticalindustries/SPI">Sun Pharmaceutical Industries</a> were among the top laggards in the Nifty50 pack, declining up to 2 percent intraday.

"With only four more trading days left for the year 2025, what looked like a Santa rally, appears to be running out of steam. In the absence of fresh triggers like a US-India trade deal, the market is likely to consolidate around the present levels," added Vijayakumar.

The price action indicates selling pressure in Indian markets at near record high levels and a lack of follow-through buying, suggesting short-term exhaustion, says Amruta Shinde, analyst at Choice Equity Broking.
<h3>Technical Analysis</h3>
On the technical front, Anand James, chief market strategist at Geojit Investments Limited, said the 26,100 level on the Nifty remained a key downside marker for the second consecutive session. He noted that the formation of an “evening star” candlestick pattern suggested the possibility of further slippage towards the 25,935–25,850 zone. A move above 26,325, however, could open the way for gains towards the 26,550–26,850 range, he added.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

A financial journalist with over 10 years of experience, specialising in tracking stock market movements and fundamental developments that impact investors and the broader economy. A keen observer of global financial markets, I regularly engage with leading market voices to write stories. At Moneycontrol, I focus on decoding market trends, policy shifts and economic changes, driven by a constant passion to learn, analyse, and share knowledge with my readers.

Sensex settles 350 pts lower, Nifty below 26,050: FII selling among key factors behind market fall

Stock market today: Sensex settles 400 pts lower, Nifty below 26,050: FII selling among key factors behind market fall

The benchmark equity indices Sensex and Nifty settled lower on Friday amid profit booking in a holiday-truncated week, with sustained selling by foreign institutional investors (FIIs) weighing on sentiment.

Falling for the third consecutive day, the Sensex dropped 367.25 points or 0.43 percent to settle at 85,041.45. During the day, it tanked 470.88 points or 0.55 percent to 84,937.82.

The Nifty declined by 99.80 points or 0.38 percent to 26,042.30, registering its second day of decline.

Despite the subdued trade on Friday, Nifty and Sensex are up about 0.4 percent each this week, poised to snap a three-week losing run, led by metals on a pick-up in demand in top consumer China, weakness in the US dollar and a stable U.S. growth outlook.
Key factors behind market decline
1) Rupee decline: The rupee depreciated 23 paise to 89.94 against the US dollar, dragged by foreign fund outflows and a recovery in crude oil prices. Forex traders said a negative trend in domestic equities, dollar demand from importers and uncertainty over trade deals further dampened sentiment.

At the interbank foreign exchange, the rupee opened at 89.84 against the dollar but moved lower to 89.94, compared to its previous close of 89.71 on Wednesday. Forex and equity markets were closed on Thursday on account of Christmas.

2) FII selling: The foreign institutional investors sold shares worth Rs 1,721.26 crore on Wednesday, marking the third straight session of net selling.

&quot;Higher US GDP growth of 4.3% for the third quarter of 2025 is imparting resilience to the US market. The high and rising profitability of US companies, including the AI ones, might nudge other FIIs, particularly the fleet footed hedge funds, to increase selling in India in the near-term,&quot; said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

Stock Market LIVE Updates

3) Crude rises: In the global markets, crude oil prices edged higher after the US ordered increased economic pressure on Venezuelan oil shipments and carried out airstrikes against Islamic State militants in northwest Nigeria. Brent crude futures rose 0.4 per cent to USD 62.48 a barrel, while US West Texas Intermediate crude gained or 0.4 percent to USD 58.58 a barrel.

4) Profit booking: Profit booking was seen across the key sectors. Shriram Finance and Sun Pharmaceutical Industries were among the top laggards in the Nifty50 pack, declining up to 2 percent intraday.

&quot;With only four more trading days left for the year 2025, what looked like a Santa rally, appears to be running out of steam. In the absence of fresh triggers like a US-India trade deal, the market is likely to consolidate around the present levels,&quot; added Vijayakumar.

The price action indicates selling pressure in Indian markets at near record high levels and a lack of follow-through buying, suggesting short-term exhaustion, says Amruta Shinde, analyst at Choice Equity Broking.
Technical Analysis
On the technical front, Anand James, chief market strategist at Geojit Investments Limited, said the 26,100 level on the Nifty remained a key downside marker for the second consecutive session. He noted that the formation of an “evening star” candlestick pattern suggested the possibility of further slippage towards the 25,935–25,850 zone. A move above 26,325, however, could open the way for gains towards the 26,550–26,850 range, he added.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Live: Will Nifty continue to struggle to mount above 26,200? | Opening Bell

9 out of 16 years NIFTY ENERGY has given positive returns in December.

Type	R1	R2	R3	PP	S1	S2	S3
Classic	35,234.07	35,409.33	35,522.42	35,120.98	34,945.72	34,832.63	34,657.37
Fibonacci	35,231.13	35,299.18	35,409.33	35,120.98	35,010.83	34,942.78	34,832.63
Camarilla	35,085.23	35,111.66	35,138.10	35,120.98	35,032.37	35,005.94	34,979.50

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