Sector Pulse – Nifty Infra Index

Price Action Overview:

The Nifty Infrastructure Index extended its bullish momentum into October 2025, closing the final week of the month at 9,566.15, continuing its steady uptrend. Notably, all four weeks of October closed in green, reflecting consistent buying interest. For the month, the index advanced 6.2%, marking its second consecutive monthly gain. Over the past two months, it has climbed 7.7% (693 points) in total.

The index is now approaching the 10,000 psychological mark, underscoring strong investor confidence in the sector. Throughout 2025, it has displayed a well-structured recovery from early-year lows, forming a clear sequence of higher highs and higher lows within a rising channel pattern visible on the weekly chart. Currently, the index is trading just 138 points below its lifetime high, and a decisive breakout above this level could pave the way for fresh record highs in the coming weeks.

Moving Averages (50-Day EMA and 200-Day EMA):

• The 50-day EMA (9,237.71) is trending decisively upward, reinforcing the medium-term bullish structure of the Nifty Infrastructure Index. Over the past month, the index has displayed consistent strength, closing below the 50-day EMA on only 2 out of 21 trading sessions. This underscores how effectively the 50-day EMA has functioned as a reliable support zone, reflecting strong buying momentum and the firmness of the ongoing uptrend as the moving average continues to slope higher.

• The 200-day EMA (8,946.14) remains comfortably below the current price levels, reaffirming the long-term bullish trend. The index has consistently traded above this moving average since the April 2025 recovery, with the widening gap between price and the 200-day EMA highlighting strong underlying momentum. Notably, since 15th April 2025, the index has neither closed below nor even touched the 200-day EMA, underscoring the strength and stability of the ongoing uptrend. The alignment of both EMAs with the shorter-term average positioned firmly above the longer-term one confirms a healthy and sustained bullish structure in the infrastructure space.

Weekly RSI-14 (Relative Strength Index):

The Weekly RSI (14) reading at 64.42 confirms healthy bullish strength with ample room for further upside before entering overbought territory. The RSI has remained above the 50-level since April 2025, validating sustained demand. A move above 70 in upcoming weeks could indicate acceleration toward new highs.

Trend Analysis:

The Nifty Infrastructure Index has maintained a resilient uptrend through 2025 despite periods of volatility. The year began with weakness in January–February, but a strong recovery emerged in March, even after a brief April dip triggered by the U.S. tariff shock that temporarily impacted sentiment.

From March to June, the index rebounded sharply, gaining nearly 20% as investor confidence returned, marking a decisive shift toward a sustained uptrend. Between July and September, it entered a healthy correction phase, forming a triangle pattern with support near the 8,800 level, which served as a base-building period.

A breakout in October reignited bullish momentum, lifting the index above 9,500 and signalling a continuation of the uptrend, with potential upside of 10,000 / 10,200 in the near term.

Industry Analysis:

India’s infrastructure sector is witnessing strong growth momentum, driven by the government’s push toward achieving the USD 5 trillion economy target by 2025. Massive public investments, such as the Rs. 11.21 lakh crore (USD 128.64 billion) capital outlay in the Union Budget 2025–26, and private sector participation are fuelling expansion across transport, logistics, and construction. Rising cement demand (7–8% CAGR over FY25–27) and growing REIT market yields (6–7.5%) reflect strong underlying activity. Initiatives like PM Gati Shakti, PMKSY, and new airport and watershed projects are improving connectivity and supply chains, while FDI inflows exceeding USD 64 billion in construction-related sectors underscore global investor confidence. Overall, India’s infrastructure ecosystem remains robust, with rising public expenditure, private investments, and policy support driving long-term growth prospects.

Stocks to focus in the Infra Space:

• Bharti Airtel Ltd – (Index weightage – 14.98%).
• Larsen & Toubro Ltd – (Index weightage – 12.66%).

Conclusion:

The Nifty Infrastructure Index remains in a strong bullish trend, supported by rising 50-day and 200-day EMAs and a healthy weekly RSI of 64.42, suggesting scope for further upside. Trading well above its key averages, the index may see brief consolidation, but the broader uptrend stays intact after a 7.7% rally in the past two months. Sustaining above 9,500 could pave the way toward the 10,200 mark. On the flip side the trend will turn bearish below 9,250. Key supports: 9,400 / 9,250 / 9,000.

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