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Weekly Market Research Report 15 - 19 December 2025 | Scrolls

by Karnivesh | 21 December 2025


Indian equity markets traded in a range-bound but resilient manner during the week, supported primarily by strong domestic institutional buying despite mixed global cues. The Nifty hovered around the 25,800–26,000 zone, while the Sensex stayed near 84,500–85,000, reflecting cautious optimism among investors.

On the macro front, inflation remained benign, with CPI inflation at 0.71% (YoY) for November and WPI continuing in deflationary territory (-0.32%), providing comfort to policymakers. The RBI reinforced its growth-supportive stance by cutting the repo rate by 25 bps to 5.25%, while also upgrading its FY26 GDP growth outlook to 7.3%, signaling confidence in domestic demand.

Investor flows highlighted a clear divergence: DIIs remained strong buyers, deploying over ₹52,000 crore in December, while FII activity showed early signs of stabilization after a volatile phase. This domestic support helped markets absorb global uncertainty stemming from US rate policy, growth concerns, and softer commodity prices.

Looking ahead, markets are expected to consolidate with a positive bias, with the Nifty likely to trade in the 25,800–26,300 range in the near term. Key triggers include the RBI MPC minutes, India’s trade data, global economic releases from the US, and year-end institutional positioning. Sectorally, autos, banking, pharma, and consumer staples appear relatively better placed, while metals, real estate, and broader mid/small caps may see consolidation.

Overall, the market tone remains cautiously optimistic, supported by macro stability, policy support, and steady domestic flows, even as global risks persist.



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