Market summary
Indian equities finished a choppy session on 18 December 2025 marginally lower, extending the slide to a fourth consecutive day. The S&P BSE Sensex slipped 77.84 points (–0.09 %) to 84 481.81, while the NSE Nifty 50 eased 3 points (–0.01 %) to 25 815.55. Volatility remained elevated as traders balanced weak global cues, a strengthening rupee and persistent foreign portfolio investor (FPI) outflows. IT stocks outperformed, cushioning the headline indices, but selling in pharmaceuticals, power, metals, autos and media capped gains. Broader markets underperformed – the BSE Smallcap index fell 0.28 % and the BSE Midcap index finished almost flat.
Major indices
| Index | 18 Dec close | Change (pts) | % change | Notes |
|---|---|---|---|---|
| Nifty 50 | 25 815.55 | –3.00 | –0.01 % | Little changed; swung between 25 902 and 25 726 during the session. |
| Sensex | 84 481.81 | –77.84 | –0.09 % | Down for a fourth day; heavyweights such as Sun Pharma and Tata Steel dragged. |
| Nifty Bank | 58 912.85 | –13.90 | –0.02 % | Consolidated within a narrow range. |
| Nifty IT | 38 633.35 | +461.30 | +1.21 % | Top-performing sector, boosted by buying in TCS and Infosys. |
| BSE Smallcap | 50 172.10 | –141.25 | –0.28 % | Broader market under pressure. |
Sectoral performance
- IT (+1.0 – 1.2 %) – Best‑performing sector; optimism around corporate deal wins and resilient US tech spending supported names like TCS, Infosys and Tech Mahindra.
- Realty (~+0.3 %) – Benefited from expectations of sustained demand and easing borrowing costs.
- Media, Auto, Pharma, Oil & Gas, Capital Goods (–0.3 % to –1.0 %) – Led declines. Sun Pharma slid after its Baska facility received a US FDA “official action indicated” tag. Auto stocks such as Bajaj Auto and M&M fell on profit‑taking.
- Energy/Oil & Gas (–0.6 %) – IOC, BPCL, Adani Total Gas and GAIL were among the top intra‑day laggards on the Nifty Energy index.
- Media (–1 %) – Tips Music, Zee Entertainment and Nazara Tech weighed on the Nifty Media index.
Key statistics
- Market breadth: On the NSE about 1 047 stocks advanced while 1 771 declined, reflecting weakness in broader participation.
- FII/DII flows: Foreign investors were net buyers on 17 Dec, purchasing equities worth approximately ₹1 171 cr, while domestic institutional investors (DIIs) bought ₹769 cr. Persistent FPI selling over recent sessions, however, has kept sentiment fragile.
- Rupee: The Indian rupee closed stronger at ₹90.25 per US dollar (previous close ₹90.37), supported by dollar inflows.
- India VIX: The volatility index slipped 1.5 % to 9.69, remaining near multi‑year lows, indicating continued complacency despite recent declines.
- Advance/decline ratio (BSE): Around 1 575 shares advanced, 2 399 declined and 174 were unchanged.
Top gainers and losers (Nifty 50)
| Top gainers | Change | % chg | Top losers | Change | % chg | ||
|---|---|---|---|---|---|---|---|
| 1 | InterGlobe Aviation (IndiGo) | +₹135.00 | +2.71 % | 1 | Sun Pharma | –₹47.00 | –2.62 % |
| 2 | Tata Consultancy Services (TCS) | +₹63.00 | +1.96 % | 2 | Power Grid Corporation | –₹3.15 | –1.21 % |
| 3 | Max Healthcare | +₹17.40 | +1.69 % | 3 | Tata Steel | –₹2.22 | –1.30 % |
| 4 | Tech Mahindra | +₹26.20 | +1.66 % | 4 | Bajaj Auto | –₹6.40 | –0.72 % |
| 5 | Infosys | +₹24.80 | +1.55 % | 5 | Mahindra & Mahindra (M&M) | –₹26.20 | –0.73 % |
What moved the market?
- Mixed global cues: Wall Street ended lower overnight as investors rotated out of AI‑related technology stocks and waited for central‑bank policy decisions. U.S. Treasury yields climbed and the dollar firmed, while Asian markets were largely negative. Dow Jones futures, however, ticked up modestly in Asian hours, creating a tug‑of‑war in sentiment.
- Cautious sentiment ahead of policy announcements: Investors remained wary ahead of the weekly index derivatives expiry and ongoing negotiations on a potential US–India trade agreement. Concerns over persistently high U.S. inflation and the timing of interest‑rate cuts kept traders defensive.
- Sector rotation: Buying in IT stocks due to deal wins and optimistic guidance helped cushion the indices. Weakness in pharma (Sun Pharma), metals (Tata Steel), autos (Bajaj Auto, M&M) and utilities (Power Grid) offset gains.
- Foreign flows: Although FPIs turned net buyers in the previous session, year‑to‑date outflows and worries about U.S. bond yields limited follow‑through buying.
Global cues
- U.S. markets: Major U.S. indices fell overnight; the Dow Jones Industrial Average shed about 228 points and the Nasdaq Composite lost nearly 1.8 % as investors sold technology shares and fretted over interest‑rate outlooks.
- Asia and Europe: Asian stocks traded mostly lower as traders digested weak overnight cues and awaited rate decisions from the European Central Bank and Bank of England. European futures were marginally higher; the FTSE and DAX futures gained ~0.2–0.5 %.
- Global indices snapshot: GIFT Nifty futures near 25 873 were flat; Dow Jones futures advanced 0.3 %; FTSE (Dec 18) added 0.21 % and Germany’s DAX futures rose 0.48 %.
Stocks to watch (for 19 Dec 2025)
- GMR Power & Urban Infra: Board approved raising up to ₹1 200 crore through equity shares and convertible warrants, indicating potential fund‑raising action.
- Titagarh Rail: Received a ₹273 crore order from the Ministry of Railways for design and supply of 62 rail‑borne maintenance vehicles—order wins could buoy the stock.
- KPI Green Energy: Signed an MoU with the Botswana government for large‑scale renewable energy generation, storage and transmission projects; eyes new international opportunities.
- NTPC Green Energy: Commenced commercial operations of 37.925 MW at its Khavda solar project in Gujarat, expanding renewable capacity.
- Cyient: Subsidiary Cyient Semiconductors Singapore agreed to acquire a majority stake (>65 %) in Kinetic Technologies, broadening its semiconductor design capabilities.
Corporate updates
- Brokerage calls:
- Vedanta – Citi and Investec reiterated “buy” ratings with targets of ₹585 and ₹635 respectively after NCLT approved its demerger proposal.
- Lodha Developers – Nuvama maintained “buy” with a ₹1 580 target; strong pre‑sales and diversification cited.
- Voltas – Bank of America upgraded to “buy”, raising the target to ₹1 555, expecting pent‑up demand and margin expansion.
- Crompton Greaves Consumer – Motilal Oswal initiated “buy” with a ₹350 target, noting revenue growth and profitability expansion.
- Tata Motors – commercial vehicles – BoFA started coverage with “buy”, ₹475 target on expectations of a rebound in the truck cycle and benefits from the Iveco acquisition.
- Siemens – HSBC kept “hold”, target ₹3 170, citing focused portfolio and robust public-spending cycle.
- 360 One – Citi reaffirmed “buy”, target ₹1 615, highlighting strong wealth inflows and synergy benefits from UBS takeover.
- Other corporate events:
- TCS announced an expanded partnership with Aviva UK, providing end‑to‑end policy administration services to manage over 6.5 million policies through its subsidiary Diligenta.
- Shriram Finance shares eyed re‑rating after Japanese lender MUFG agreed to invest $4 billion through a stake purchase and preferential allotment.
- Patel Engineering signed an MoU with the Arunachal Pradesh government for a ₹1 700 crore hydropower project, boosting its order book.
- Sun Pharma confirmed that its Baska manufacturing facility received a US FDA “official action indicated” classification, prompting a sell‑off in the stock.
- IIFL Finance announced a board meeting on 22 December to consider issuance of non‑convertible debentures via private placement.
- CAMS Payment Services received authorisation from the RBI to operate as a payment aggregator; company also completed the transfer of its existing payment aggregator business to CAMSPay.
- Amber Enterprises – Prabhudas Lilladher upgraded the stock to “buy” (from “accumulate”) and raised the target to ₹8 460 citing long‑term growth drivers.
- BSE Ltd disclosed receipt of a ₹7.25 crore Central GST demand notice; shares nonetheless rose on heavy volumes.
- Tata Elxsi – Axis Capital downgraded to “reduce” due to rich valuations; stock still gained marginally.
- IPO news – KSH International IPO was subscribed 0.72× by afternoon of day 3; QIB portion subscribed 0.95×, retail 0.75×, NII 0.33×.
Outlook for tomorrow (19 Dec 2025)
Technical levels
- Nifty 50: The index continues to make lower highs and lower lows on the daily chart, indicating a bearish bias. The short‑term support zone is 25 700 – 25 750; a decisive break below 25 700 could accelerate the decline toward 25 500 – 25 400. On the upside, 25 950 – 26 050 is the immediate resistance zone. A sustained move above 26 050 could open the door for 26 300. Momentum indicators remain in bearish crossover, suggesting rallies may be sold into.
- Bank Nifty: The index is consolidating between 58 500 – 60 100. Key support lies at 58 200 – 58 600, a confluence of recent lows and breakout zones. A move below this band may drag the index to 57 800. On the higher side, 59 500 is the first hurdle; a close above this could pave the way for retesting 60 100.
Expected market tone
- Cautious consolidation: With major global central bank decisions due and U.S. markets showing weakness, Indian equities are likely to remain range‑bound with a slight negative bias. Traders should watch for volatility around the support levels; a break below 25 700 on the Nifty may trigger further selling pressure.
- Sector rotation continues: IT stocks may continue to display relative strength, but profit‑booking in autos, metals and pharma could cap gains. Realty and select PSU banks could see accumulation on dips.
- Key triggers to watch: U.S. Treasury yield moves, foreign fund flows, rupee movement and developments on the US–India trade deal will be closely followed. Investors should also monitor upcoming macro data and corporate announcements.
Bottom line:
The market remains in a corrective phase with weak breadth despite occasional intraday rebounds. Unless the Nifty reclaims the 25 950–26 000 zone decisively, traders should maintain a cautious stance, lighten long positions on rallies and look for stock‑specific opportunities with robust fundamentals.
