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Indian markets end slightly lower in passing week despite last day recovery
Dec-19-2025

Indian markets ended the passing week with marginal losses due to mixed macro-economic data, depreciating rupee, and continued uncertainty over trade deal between India and US. But, in the last trading session of the week, markets witnessed some recovery on account of value buying and renewed buying interest from foreign portfolio investors, but failed to enter green terrain.

Some of the major developments during the week are:

Retail inflation inches up to 0.71% in November: India's retail inflation, as measured by the Consumer Price Index (CPI), inched up to 0.71 per cent in the month of November 2025, as compared to 0.25 per cent in October 2025 and 5.48 per cent in November 2024.

India's November WPI inflation signals mild easing in deflationary pressure: India's WPI inflation remained in the negative zone in the month of November 2025, but the pace of decline eased compared with the previous month. WPI inflation stood at -0.32% in November 2025, as against -1.21% in October 2025.

India’s merchandise exports rebound in November: The commerce ministry data has showed that India’s merchandise exports rebounded by 19.37% Y-o-Y to $38.13 billion in November 2025 after contracting in October 2025, driven by higher shipments of engineering and electronics goods. 

India’s private sector expansion rate eases to 10-month low in December: The HSBC Flash India Composite Output Index - a seasonally adjusted index measures M-o-M change in combined output of India's manufacturing and service sectors - fell to 10-month low of 58.9 in December from 59.7 in November 2025.

Unemployment Rate in India falls in November: National Statistical Office has conducted the Periodic Labour Force Survey and showed that India’s overall Unemployment Rate among persons of age 15 years and above fell to its lowest level (since April 2025) at 4.7% for November 2025 from 5.2% in October 2025.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex slipped 338.30 points or 0.40% to 84,929.36 during the week ended December 19, 2025. The BSE Midcap index gained 69.79 points or 0.15% to 46,547.30, while Smallcap index slipped 89.9 points or 0.18% to 50,800.77. On the sectoral front, S&P BSE Power was down by 64.44 points or 0.99% to 6,452.21, S&P BSE BANKEX was down by 522.03 points or 0.78% to 66,140.65, and S&P BSE Finance was down by 91.91 points or 0.70% to 13,053.54 were the top losers, while S&P BSE Information Technology was up by 443.64 points or 1.20% to 37,448.32, S&P BSE TECK was up by 197.87 points or 1.07% to 18,750.02 and S&P BSE Consumer Durables was up by 406.31 points or 0.68% to 60,340.31 were the top gainers on the BSE.

NSE movement for the week

The Nifty slipped 80.55 points or 0.31% to 25,966.40. On the National Stock Exchange (NSE), Bank Nifty was down by 320.75 points or 0.54% to 59,069.20, and Nifty Next 50 lost 131.05 points or 0.19% to 68,378.65, while Nifty IT was up by 416.85 points or 1.09% to 38,691.60 and Nifty Mid Cap 100 increased 26.85 points or 0.04% to 60,310.15.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net buyers in equity segment in the week, with gross purchases of Rs 62,307.31 crore and gross sales of Rs 58,536.59 crore, leading to a net inflow of Rs 3,770.72 crore. They also stood as net sellers in the debt segment with gross purchases of Rs 9,964.95 crore against gross sales of Rs 12,061.80 crore, resulting in a net outflow of Rs 2,096.85 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 394.95 crore and gross sales of Rs 165.92 crore, leading to a net inflow of Rs 229.03 crore.

Industry and Economy

With the help of robust domestic demand and steady macro fundamentals, CareEdge Ratings in its latest report has estimated India’s Gross Domestic Product (GDP) growth at 7.5% in FY26 and 7.0% in FY27. Besides, nominal GDP growth is projected at 8.3%, lower than the budgeted 10.1% for FY26. It said in H1 FY26, healthy agricultural activity, reduced income tax burden, GST rationalisation, RBI rate cuts, festive demand and front-loading of exports supported growth. It further projected that GDP growth to moderate to around 7% in H2 FY26 as the impact of export front-loading fades and consumption demand normalises after the festive season. By Q4 FY26, the low base effect is likely to wane, and the deflator is likely to rise from current low levels. 

Outlook for the coming week

In the passing week, Indian markets ended in red amid continued uncertainty surrounding a potential trade agreement between India and US.

The coming week will be holiday shortened as the markets will be closed on December 25 on account of Christmas. In economic releases, market participants will be watching Infrastructure Output data, which going to be out on December 22. Bank Loan Growth, Deposit Growth and Foreign Exchange Reserves data are going to be out on December 26.

On the global front, investors will be eyeing macro-economic reports from world’s largest economy, United States, starting with Chicago Fed National Activity Index on December 22 followed by Durable Goods Orders, Redbook YoY, Industrial Production, and Richmond Fed Manufacturing Index on December 23, Initial Jobless Claims on December 24, and Baker Hughes Oil Rig Count on December 26.

Top Gainers 

  • Interglobe Aviation up by 6.94% was the top gainer on Nifty for the week - Interglobe Aviation traded with traction as the company stabilized its operations across the network. The company also indicated that it has been gradually and carefully adding capacity in line with the revised schedule. It has been flying to all its 138 operational destinations and maintaining normal on-time performance.
  • Shriram Finance up by 6.44% was another top gainer on Nifty for the week - Shriram Finance traded higher as the company secured Board of Directors’ approval for entering into definitive agreements with MUFG Bank for an investment of Rs 39,618 crore in the company through a preferential issuance of equity shares. This investment will result in MUFG Bank acquiring a 20.0% stake in the company on a fully diluted basis.

Top Losers 

  • Sun Pharmaceutical Industries down by 3.45% was the top loser of the week on Nifty - Sun Pharma came under pressure after U.S. Food and Drug Administration (USFDA) issued Official Action Indicated status for the company’s Baska facility. The USFDA had conducted an inspection at the said facility from September 08, 2025 to September 19, 2025.
  • Axis Bank down by 3.31% was another top loser of the week on Nifty - Axis Bank traded lower amid private report indicated about more than expected time required for recovery of net interest margins (NIMs) of the bank. The bank reportedly indicated that it expects NIMs to bottom out only in the fourth quarter of FY26 or in first quarter of FY27. Earlier, the bank had indicated that the margin would to bottom out in third quarter of FY26.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 26,057.60 on December 15 and lowest level of 25,726.30 on December 18. On the last trading day, the Nifty closed at 25,966.40 with weekly loss of 80.55 points or 0.31 percent. For the coming week, 25,775.93 followed by 25,585.47 are likely to be good support levels for the Nifty, while the index may face resistance at 26,107.23 and further at 26,248.07 levels.

US Market

The U.S. markets traded lower during the week after Retail sales in the U.S. were roughly flat in the month of October. Retail sales were virtually unchanged in October after inching up by a downwardly revised 0.1 percent in September.

Some of the major developments during the week are:

U.S. annual consumer price growth unexpectedly slows in November: Consumer prices in November were up by 2.7 percent compared to the same month a year ago. Street had expected the annual rate of growth to tick up to 3.1 percent.

jobless claims in U.S. decrease roughly in line with estimates: Initial jobless claims fell to 224,000 in week ended December 13, decrease of 13,000 from previous week's revised level of 237,000. Street expected jobless claims to slip to 225,000.

Philly Fed index unexpectedly slumps to -10.2 in December: The Philly Fed said its diffusion index for current general activity slumped to a negative 10.2 in December from a negative 1.7 in November, with a negative reading indicating contraction.

U.S. business inventories increase in September: Business inventories rose by 0.2 percent in September after coming in unchanged in August. Retail and wholesale inventories grew by 0.4 percent and 0.5 percent, respectively.

Job growth in U.S. exceeds estimates in November: Non-farm payroll employment climbed by 64,000 jobs in November after tumbling by 105,000 jobs in October. Street had expected employment to rise by 50,000 jobs.

European Market

European markets remained firm during the passing week after the European Central Bank left its key interest rate unchanged for the fourth policy session in a row and raised the growth forecasts for the euro area citing support from domestic demand.

Some of the major developments during the week are:

Bank of England cuts rate by 25 bps: The Monetary Policy Committee, governed by Andrew Bailey, voted 5-4 to reduce the bank rate by 25 basis points to 3.75 percent, which was the lowest since early 2023.

Eurozone inflation steady at 2.1%: The final data from Eurostat showed that inflation remained unchanged at 2.1 percent in November. The November rate was revised down from 2.2 percent estimated on December 2.

Eurozone private sector growth moderates in December: The HCOB composite output index, which measures overall private sector activity, dipped to 51.9 in December from a final reading of 52.8 in November. 

Eurozone trade surplus surges in October: The Eurostat reported that the trade surplus rose to EUR 18.4 billion in October from EUR 7.1 billion in the previous year. However, the surplus was unchanged from September.

Swiss trade surplus grows in November: The data from the Federal Customs Administration showed that the trade surplus rose to CHF 3.0 billion in November from CHF 2.5 billion in October.

Asian Market

Asian markets, barring KLSE composite index, traded in red during the passing week, despite signs of cooling U.S. inflation bolstered expectations of looser U.S. monetary policy next year.

Some of the major developments during the week are:

Japan inflation climbs 2.9% in November: Overall consumer prices in Japan were up 2.9 percent on year in November. That was in line with expectations and down from 3.0 percent in October.

Japan core machinery orders jump in October: The value of core machinery orders in Japan was up a seasonally adjusted 7.0% on month in October- coming in at 992.9 billion yen. That beat forecasts for a decline of 1.8%.

Japan logs trade surplus in November: Japan posted a merchandise trade surplus of 322.2 billion yen in November. That beat forecasts for a surplus of 71.2 billion yen following the 226.1 billion yen shortfall in October.

BoJ hikes key rate by 25 bps: The Bank of Japan (BOJ) raised key policy rate 25 bps to 0.75%, its highest level since September 1995, signaling a broader policy shift amid rising uncertainties surrounding the U.S. economy and trade policies.

China retail sales growth at near 3-year low: China’s retail sales rose 1.3% Y-o-Y in November 2025, easing from October figures and market estimate of 2.9%. It marked slowest yearly rise since December 2022 despite ongoing consumer subsidy programs.
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