Indian stock market indices, the Nifty 50 and the Sensex, are expected to exhibit a muted to positive start on May 27, 2025, following mixed cues from global markets.

Global Market Influences

Asian markets displayed a mixed performance in early trading. Japan's Nikkei was slightly down by 0.15%, while the broader Topix index remained flat. South Korea's Kospi experienced a 0.32% decline, retreating from a three-month high. In contrast, Australia's ASX 200 bucked the trend with a 0.16% increase. US markets were closed on May 26 for Memorial Day, but futures contracts showed positive sentiment, with Dow Jones Industrial Average futures rising 1%, S&P 500 futures advancing 1.1%, and Nasdaq 100 futures jumping 1.3%. This surge in US futures followed news of a potential delay in tariffs on imports from the European Union, which eased global trade tensions.

Domestic Market Performance

On May 26, both the Nifty 50 and the Sensex sustained their upward momentum for the second consecutive session. The Nifty 50 closed above the 25,000 mark, settling at 25,001.15, a gain of 0.60%. The Sensex ended the day at 82,176.45, up by 0.56% or 455.37 points. Investor sentiment was buoyed by positive news regarding India's economic growth, with NITI Aayog reporting that India had surpassed Japan to become the world's fourth-largest economy. Additionally, the Reserve Bank of India's (RBI) record dividend transfer of ₹2.69 trillion to the government boosted market confidence.

Factors Influencing Market Sentiment

Several factors are expected to influence the Indian stock market on May 27:

• Global Cues: The mixed performance in Asian markets and the positive signals from US futures will likely set the tone for the Indian market opening.
• Domestic Macroeconomic Factors: Strong domestic macroeconomic data and positive corporate earnings reports are expected to sustain the upward trend.
• Technical Analysis: Market analysts suggest that the Nifty 50 is likely to remain strong, with the potential to extend gains towards the 25,300–25,350 range. Support is expected around 24,800. For the Sensex, 81,900 is seen as a key support level, while 82,500-82,800 may act as resistance.
• FII and DII Activity: On May 26, foreign portfolio investors (FPIs) were net buyers of stocks worth ₹136 crore, while domestic institutional investors (DIIs) bought equities worth ₹1,746 crore. Continued buying support from both FIIs and DIIs could further boost market sentiment.
• Rupee Movement: The Indian rupee opened stronger against the U.S. dollar on May 26, supported by weakness in the dollar and regional currency movements. A strong rupee can positively impact the stock market.
• Q4 Earnings: Market participants will be closely watching the final set of Q4 earnings reports from major companies, including Life Insurance Corporation of India, Bosch, and NMDC, for further direction.

Expert Opinions and Predictions

• Shrikant Chouhan, Head of Equity Research at Kotak Securities, anticipates that 81,900 will serve as a crucial support zone for the Sensex. A sustained move above 82,500 could pave the way for further upside momentum.
• Nandish Shah, Senior Derivative & Technical Research Analyst at HDFC Securities, noted that the Nifty 50 appears to have regained its momentum and broken out of its consolidation zone of 24,500-25,000. Immediate resistance is expected at 25,207, with support at 24,800.
• Market analysts expect Indian equities to continue their gradual up-move on the back of strong domestic macros and supportive global market trends.

Stocks to Watch

Analysts have suggested several stocks for potential buying opportunities on May 27. Somil Mehta from Mirae Asset Sharekhan recommends CAMS (Computer Age Management Services) and Inox Wind. Sumeet Bagadia, Executive Director at Choice Broking, has also recommended specific stock picks.

Overall Outlook

The Indian stock market is expected to start on a steady note on May 27, influenced by global cues and domestic factors. Positive sentiment from U.S. futures and strong macroeconomic data could provide further impetus to the market. Investors are advised to monitor key support and resistance levels and remain stock-specific in their approach.