Indices seen consolidating in short term

The benchmark equity indices are expected to consolidate in the short term with the bias remaining positive amid improving visibility of an earnings growth recovery and expectations of an India-US trade deal, according to analysts.

- Informist

The domestic equity market, however, is expected to be volatile Tuesday, when the weekly derivatives contracts of the Nifty 50 index expire. Meanwhile, depreciation of the rupee against the dollar and the sustained selloff by foreign investors is expected to continue to have an impact on market sentiment.

After more than a year of muted returns, analysts expect better returns from domestic equities driven by earnings growth and easing economic conditions. However, high valuations may still lead to moderate returns going forward. Pravin Bokade, head of research at IDBI Capital Markets & Securities, expects the Nifty 50 index to give 10-12% returns in 2026, compared with 10% so far this year. "Overall. the Indian economy is doing well, the market valuation is comfortable right now. We need to see the earnings pick up," Bokade said.