- Summary:
- The Nifty 50 Index has turned green year-to-date for the first time in 2025, underlining a strong upbeat momentum in March.
The Nifty 50 Index inched up on Tuesday, recording the eighth successive gain to turn its year-to-date returns green for the first time. The Index was at 23,668 at the closing bell, up by 0.04% on the day, with its performance underlining the strong recovery by Indian equities markets. India’s other benchmark Index, the Sensex Index ended the session with a similar percentage gain.
India’s equities have been on a strong uptrend in March, with the Nifty 50 Index gaining 3.5% in the last month. Tuesday’s marginal gains signal a potential underlying uncertainty among investors as the April 2 date for commencement of US reciprocal tariffs draws near.
Some analysts believe that India could slash its current tariffs on $23 billion worth of US goods to appease the Trump administration and avoid a tariff war. That could potentially provide support for the Indian economy reeling from a reduced growth propulsion since Q4 2024.
Meanwhile, wealth management company, Bernstein says in its latest market outlook that India could benefit from a US recession. According to the company, India’s economy has proven its resilience and has strong domestic drivers that sets it up to benefit from a potential contraction by the world’s largest economy. Furthermore, Bernstein has set the Nifty 50 Index target at 26,500 points. That implies a potential growth headroom of 10.7% from the current level.
Nifty 50 Index Prediction
The Nifty 50 Index pivots at 23,650 and the upside will prevail if action stays above that level. The first resistance will likely be at 23,760. However, a stronger momentum will break above that level and potentially open the pathway to test the second hurdle at 23,885.
On the other hand, the momentum could swing to the downside if the Index breaks below 23,590 points. If that happens, the first support is likely to be at the 23,500 points level. Breaking below that level will invalidate the upside narrative, and could extend the decline to test 23,885.
