Indian equity markets witnessed a volatile yet range-bound week, opening on a positive note before succumbing to selling pressure and eventually consolidating through the remainder of the week. Investor sentiment remained cautious amid persistent foreign institutional investor (FII) outflows and heightened anticipation around potential monetary tightening by the Bank of Japan, which kept global risk appetite in check. As the calendar approaches year-end, thinner liquidity and a relatively light domestic data calendar have resulted in Indian markets taking cues largely from global developments.
On the macroeconomic front, India’s headline consumer price inflation (CPI) for November came in at a benign 0.71% YoY, rising from an all-time low of 0.25% in October. The uptick was primarily driven by higher prices of vegetables, eggs, meat and fish, spices, and fuel. Fuel and light inflation accelerated to 2.32% in November from 1.98% in the previous month, while inflationary pressures were visible across both urban and rural segments. Despite this sequential increase, headline inflation remains well below the Reserve Bank of India’s lower tolerance band, reinforcing expectations of an extended pause in policy rates, with the central bank likely maintaining a neutral stance in the near term.
From a liquidity perspective, the RBI’s announcement of an open market operation worth ₹50,000 crore, scheduled from 18 December 2025, is expected to inject liquidity into the system. This move should help ease domestic liquidity conditions and provide some support to the rupee amid a challenging global currency environment. The Reserve Bank of India’s active intervention continues to anchor the rupee within the ₹89–91 range against the US dollar, although clarity on the timing and contours of the India–US trade deal remains elusive.
With no major breakthroughs on the trade front so far, market focus is expected to gradually shift from next week towards the Union Budget–related build-up. On the flows front, FIIs turned marginal net buyers for the second consecutive session; however, derivatives positioning remains stretched, with FII index shorts at elevated levels of around 92%—the highest in the current series. As positions turn lighter into the year-end, a larger unwinding cannot be ruled out, potentially leading to intermittent profit booking and continued range-bound market action in the near term.
With this let me present to you weekly market review.
How Did the Markets Fare Last Week?
On a weekly basis ending on Friday, the Indian benchmark indices ended in red. Sensex and Nifty were up 0.4% each while Midcaps outperformed and was up 0.2 % during the week.
What Might Keep the Markets Busy Into the Next Week?
As the markets head into a truncated trading week, domestic cues are expected to remain limited, a trend already visible in the previous week’s price action. In the absence of meaningful local triggers, Indian equities are likely to take direction largely from global developments and move broadly in tandem with overseas markets. Institutional participation will be a key determinant, with domestic institutional investors (DIIs) expected to provide stability as foreign institutional investors (FIIs) turn less active amid the holiday season.
Globally, market focus will be on key US macroeconomic data, led by the GDP growth print for CY25, where consensus expectations stand at around 3.2%. Additionally, indicators such as capacity utilisation, industrial production, existing home sales and weekly jobless claims will be closely tracked for cues on the strength of the US economy and implications for monetary policy.
On the domestic front, with no fresh updates on the India–US trade deal, investor attention is likely to gradually shift towards the Union Budget, which is expected to emerge as a key driver of market positioning and sectoral trends in the near term.
Crude and FII Flows
Brent Crude Oil Prices rebounded from its lowest close of $58/bbl to around $61/bbl, as geopolitical tensions in Venezuela and Russia eclipsed concerns over a still-weak global supply outlook. On the other hand, FIIs were the buyers for last 2 days but continue to remain Net Sellers for the week.
Sector in Focus
IT, PSU Bank, FMCG, & Energy remained in focus during the week.
Stocks that Remained in Focus During the Week
Reliance Industries Ltd | The FMCG arm of RIL, Reliance Consumer Products Ltd, announced the acquisition of a majority stake in Udhaiyam Agro Foods, bringing the Tamil Nadu–based heritage nutrition brand into its branded staples portfolio. BPCL | The company said its board has approved the formation of a joint venture with Coal India to set up a coal gasification project at Western Coalfields in Maharashtra, subject to regulatory approvals.
Cyient | The company’s Singapore subsidiary to acquire 65%+ stake in US-based Kinetic Technologies for $93M, deal expected by April 30, 2026.
Antony Waste Handling | The company’s subsidiary AG Enviro Infra wins two BMC municipal waste contracts worth ₹1,330 crore.
HCLTech | The firm partners with Netherlands’ ASN Bank to modernise and standardise IT architecture under the bank’s ‘Simplify and Grow’ strategy.
NBCC India | State-owned company said it has received work orders in the ordinary course of business with an aggregate value of approximately ₹345.04 crore, excluding GST. The company has been awarded a project management consultancy assignment by the Indian Institute of Technology, Mandi, valued at about ₹332.99 crore. The scope of work includes planning, design and development for the construction of academic blocks, 2 BHK and 3 BHK housing, a student activity centre including a sports complex, and other related works at the IIT Mandi campus in Kamand, Himachal Pradesh.
LUPIN | Company announced that its subsidiaries in the Philippines (Multicare Pharmaceuticals) and Brazil (MedQuimica) have signed an exclusive licensing agreement with Neopharmed Gentili S.p.A, an Italian pharmaceutical company, for marketing and promotional rights for the Gastroenterology brand, Plasil® (metoclopramide), in their respective markets.
Ola Electric | The company's founder Bhavish Aggarwal has sold 9.62 crore shares below the IPO price through block deals between December 16–18 to repay loans and release pledged shares.
Protean eGov Technologies | The board of directors approved the acquisition of a 4.95% equity stake in NSDL Payments Bank (NSDL PB) through an equity investment of ₹30.2 crore. The transaction will be completed in a single cash-based equity subscription and is expected to be finalised within 60 days from the execution of the agreement. The acquisition involves 93,74,014 equity shares of NSDL PB.
BL Kashyap and Sons | The company said it has secured a ₹615.69 crore work order from Sattva CKC for structural and civil works at the Sattva Chennai Knowledge City project, to be executed over 31 months.