Index Update: The Nifty 50 slipped 29.85 points to close at 25,936.20, consolidating after recently touching new record highs. The index remains well above the 51-day EMA at 25,091.23, providing strong underlying support. The RSI at 70.03 indicates sustained bullish momentum, though mildly overbought conditions persist. Immediate support is seen around 25,670, while resistance lies near 26,000. Holding above 25,670 would help maintain the broader uptrend.

Macro Update: India is considering raising the foreign investment cap in state-run banks to 49% from the current 20%, aiming to attract greater overseas capital. The finance ministry and RBI are in talks, with growing foreign interest highlighted by major recent bank investments from Emirates NBD and Sumitomo Mitsui.

Top Market Movers: On Tuesday, JSW Steel Ltd (NSE: JSWSTEEL) led the gainers with a 2.92% increase, closing at INR 1,184.20 followed by Tata Steel Ltd (NSE: TATASTEEL) up 2.91% at INR 181.81 and SBI Life Insurance Company Ltd (NSE: SBILIFE) which rose 1.77% to INR 1,936.80. On the downside, Trent Ltd (NSE: TRENT) saw the largest drop, falling 1.53% to INR 4,725.40 followed Bajaj Finserv Ltd (NSE: BAJAJFINSV) down 1.38% to INR 2,140.20 and Coal India Ltd (NSE: COALINDIA), which dropped 1.34% to INR 391.40.

Commodity Update: The dollar weakened on Tuesday ahead of major central bank meetings, with markets anticipating a U.S. rate cut and monitoring President Donald Trump’s Asia tour for progress on a trade deal with China. Gold slipped 0.47% to USD 4,004.10 per ounce, while silver rose 0.03% to USD 46.78 and copper edged up 0.15% to USD 11,031.00. Brent crude eased 0.10% to USD 65.59 as OPEC’s planned output hikes offset recent gains from U.S. sanctions on Russia and trade optimism.

Our Stance: Market outlook remains constructive despite minor consolidation in headline indices. Strong support near 25,670 is expected to sustain the broader uptrend. Policy signals on higher FDI in state banks could enhance liquidity sentiment. Commodity cues remain mixed, with softer dollar and stable crude prices offering near-term macro comfort.

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