India's Economy Update May 25: Nifty 24,032, RBI Policy & Inflation in Focus
India's Economy Holds Steady: RBI Policy, Inflation Data in Focus for May 25 Week
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| India's Economy Holds Steady: RBI Policy, Inflation |
Market Pulse: May 25 Snapshot
Gift Nifty traded 120 points higher at 24,650 in early signals, pointing to a strong opening for domestic equities. On Friday, the Sensex closed at 81,721, down 251 points, while the Nifty settled at 24,032.
Foreign Institutional Investors (FIIs) returned as net buyers last week with inflows of Rs 8,200 crore, reversing the selling trend seen in early May. Domestic Institutional Investors (DIIs) continued support with Rs 12,400 crore of buying.
Inflation and RBI Watch
April CPI inflation came in at 4.83%, slightly above March’s 4.79% but within the RBI’s 2-6% comfort band. The central bank’s Monetary Policy Committee meets June 5-7. Most economists expect the repo rate to stay unchanged at 6.5% for the eighth straight meeting.
RBI Governor Shaktikanta Das last week said the bank remains “vigilant on food inflation” but noted that core inflation continues to ease.
Key Sectors for May 25 Week
- Banking: PSU banks under pressure after mixed Q4 results. Private banks like HDFC Bank, ICICI Bank remain in focus.
- IT: Nasdaq rally and weak rupee likely to support TCS, Infosys, HCL Tech.
- FMCG: Rural demand recovery helping HUL, Dabur, Britannia. Monsoon progress key.
- Auto: May sales data expected this week. Maruti, Tata Motors, M&M on radar.
Global Cues
US markets closed higher Friday with the Dow up 0.3% and Nasdaq up 1.1%. The US Fed’s May meeting minutes, due Wednesday, will be watched for rate cut signals. Brent crude trades at $82 per barrel.
What Traders Watch on May 25
Nifty Support: 23,900, 23,750
Nifty Resistance: 24,200, 24,350
Bank Nifty Support: 51,200
Bank Nifty Resistance: 52,000
Analysts expect range-bound trade before the RBI policy. “Markets need a fresh trigger. Until then, 24,000-24,300 is the zone for Nifty,” said a senior dealer at a Mumbai brokerage.
Disclaimer: This article is for information only. Please consult your financial advisor before investing.

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