Summary
Indian equity markets continued their year‑end rally on Monday, 22 December 2025. Strong global cues, a firmer rupee and foreign institutional inflows helped benchmarks extend gains for the second straight session. The Sensex added roughly 638 points (≈0.75 %) to finish just below its record, while the Nifty 50 climbed about 206 points (+0.79 %) and closed comfortably above the 26,000 mark. Buying was broad based; mid‑ and small‑cap indices outperformed with the Nifty MidCap 100 and Nifty SmallCap 100 gaining around 0.84 % and 1.17 %, respectively. Sectorally, information technology and metals led the advance, while consumer durables was the only laggard.
Traders attributed the rally to expectations that the U.S. Federal Reserve will lower rates in 2026, strong liquidity from domestic institutions and foreign investors turning net buyers. Positive global markets (U.S. equity futures and most Asian bourses were higher) and optimism surrounding the proposed India–New Zealand free‑trade agreement added to sentiment. Technical indicators show the Nifty clearing resistance around 26,050–26,100, validating a double‑bottom pattern. As long as the index holds above 25,950–26,000, the trend remains bullish.
Key indices
| Index | Close | Change (%) | Key points |
|---|---|---|---|
| Sensex | ~85,567 | +0.75 % | Closed ~638 points higher; within 1 % of its 52‑week high. Technical structure stays bullish above 84,900 support. |
| Nifty 50 | 26,172.40 | +0.79 % | Ended ~206 points higher, decisively above the 26,000 zone. Confirmation of breakout above 26,050–26,100 opens the door to 26,300–26,500; support at 25,950–26,000. |
| Nifty Bank | 59,304 | +0.40 % | Banking index participated but lagged the main benchmarks; support near 58,800; resistance around 59,500–59,800. |
| Nifty MidCap 100 | ~46,948 | +0.84 % | Mid‑caps outperformed large caps. |
| Nifty SmallCap 100 | ~13,446 | +1.17 % | Small‑caps saw a strong bid; the advance–decline ratio on the BSE was ~2.9:1 (around 2,255 advancers vs 924 decliners). |
| BSE Midcap Index | — | +0.8 % | Broader BSE mid‑caps gained. |
| BSE Smallcap Index | — | ~+1 % | Small‑caps extended gains, reflecting risk appetite. |
Market breadth: about 2,255 stocks advanced against 924 declines; 104 were unchanged. Roughly 89 stocks hit a fresh 52‑week high while 66 touched a new 52‑week low.
Sectoral performance (Nifty indices)
| Sector/index | Change (%) | Notes |
|---|---|---|
| IT (Nifty IT) | +2.06 % | Outperformed; gains in Infosys, Wipro and Tech Mahindra supported the sector. |
| Metals (Nifty Metal) | +1.41 % | Supported by strength in global commodity prices. |
| Capital Goods/Industrials | +1–2 % | Capital‑goods and infrastructure stocks continued to see buying interest. |
| Banking & Financials (Nifty Bank) | +0.40 % | Moderate rise; private lenders such as SBI and Kotak Mahindra Bank lagged. |
| Auto | ~+0.7 % | Led by Tata Motors PV, Eicher Motors. |
| Media, Chemicals & Consumer Durables | Mixed | Nifty Media and Chemicals indices gained over 1 %, while Nifty Consumer Durables slipped around 0.16 %, making it the sole loser. |
Top gainers and losers (Nifty 50 constituents)
| Top gainers | Approx. change | Notes |
|---|---|---|
| Trent | +≈3.9 % | Continued momentum on strong December sales and robust Q2 results. |
| Shriram Finance | +≈3.9 % | Non‑banking financial company saw buying interest amid NBFC optimism. |
| Wipro | +≈3 % | IT stocks rallied on hopes of improved technology spending. |
| Infosys | +≈3 % | Benefited from a weaker rupee and optimism around large contract wins. |
| Bharti Airtel | +≈2 % | Telecom major gained after reporting subscriber additions and ARPU growth. |
| Top losers | Approx. change | Notes |
|---|---|---|
| HDFC Life Insurance | −≈0.7 % | Profit‑taking after recent gains; one of the few Nifty stocks in the red. |
| Tata Consumer Products | −≈0.5 % | Mild decline on valuation concerns after a recent rally. |
| State Bank of India (SBI) | −≈0.6 % | Banking names lagged despite a positive market. |
| Kotak Mahindra Bank | −≈0.5 % | Weakness due to a sluggish deposit growth update. |
| Cipla | −≈0.4 % | Pharma major eased on profit‑booking. |
Broader‑market movers: Rajesh Exports (+≈10.45 %), Cochin Shipyard (+≈8.3 %), KNR Constructions (+≈7.8 %), Sterlite Technologies (+≈7.3 %), and Sunteck Realty (+≈6.4 %) were notable gainers. On the downside, Davangere Sugar Company (−≈20 %), Embassy Developments (−≈4.3 %), Future Consumer (−≈4.3 %), and Shoppers Stop (−≈4.2 %) were among the laggards.
What moved the market
- Global cues – U.S. equity futures and most Asian and emerging‑market indices were higher as investors priced in potential rate cuts by the U.S. Federal Reserve in early 2026. MSCI Asia‑Pacific and MSCI Emerging Markets indices were up ~0.9 % and 0.8 %, respectively. Firm global sentiment and a pull‑back in crude oil supported risk appetite.
- Rupee strength and FII inflows – The Indian rupee firmed against the U.S. dollar, easing concerns over imported inflation. Foreign institutional investors turned net buyers in recent sessions, reversing last week’s outflows; Friday saw net equity purchases worth over ₹18 billion.
- Sector rotation – Technology and metal stocks led the rally as investors rotated into sectors expected to benefit from improving global growth and a weaker currency. NBFCs and capital‑goods names also attracted flows.
- Corporate news –
- GE Vernova T&D India surged after winning a large high‑voltage direct‑current (HVDC) contract.
- Hindustan Construction Company (HCC) gained on securing a major railway project.
- Jupiter Wagons rallied over 11 % after promoters increased their stake.
- Groww continued its sharp rise (≈20 % over three days) as investors bet on strong client additions.
- Kinetic Engineering jumped after its subsidiary partnered with JioThings to integrate digital features into electric two‑wheelers.
- Macro optimism – Expectations of progress on the proposed India–New Zealand free‑trade agreement and resilient domestic macro data (high‑frequency indicators signalling steady growth) added to optimism. Gold prices hit a record high on rate‑cut expectations, but this did not deter equity inflows.
Stocks to watch for 23 December 2025
- Trend followers: Trent, Shriram Finance, Wipro, Infosys and Bharti Airtel have displayed strong momentum; any intraday dips could attract buyers.
- Banking laggards: SBI and Kotak Mahindra Bank closed lower; watch for a rebound if sentiment improves or if there are updates on credit growth.
- Corporate catalysts: GE Vernova T&D India, HCC, Jupiter Wagons, Kinetic Engineering and Groww could remain active after their respective contract wins or stake increases.
- Metal & capital‑goods names: Tata Steel, Hindustan Copper and other metal stocks rallied amid firm commodity prices; they may continue to outperform if global metals remain strong.
Corporate updates
- Large contracts – GE Vernova T&D India announced a major high‑voltage direct‑current project win, boosting its stock over 10 %. Hindustan Construction Company reported securing a significant railways contract, pushing the stock ~8 % higher.
- Promoter actions – Promoters of Jupiter Wagons increased their stake, sparking an ~11 % rally. Groww extended its sharp rise amid speculation of investor interest and strong customer growth.
- Partnerships & innovation – Kinetic Engineering’s subsidiary signed an agreement with JioThings to embed smart connectivity features in electric two‑wheelers, leading to a ~15 % intra‑day surge.
Outlook for tomorrow
- Technical levels – The Nifty 50 has confirmed a breakout above the 26,050–26,100 zone and now faces resistance near 26,200. A sustained close above 26,200 could open the way to 26,300–26,500. Support lies at 25,950–26,000; a break below 25,900 may trigger profit‑booking toward 25,800–25,750. For the Sensex, support is near 85,000, with resistance at 85,800 (proximate to its 52‑week high) and then 86,200.
- Market tone – Momentum remains positive with a mild overbought condition. With only a few trading sessions left in the year, the market may lean toward a Santa‑rally continuation, aided by steady FII inflows and supportive global cues. However, profit‑booking could emerge near resistance levels or if global markets wobble.
- Focus areas – Traders should monitor U.S. economic data and any Fed commentary, crude‑oil movement, and developments around the free‑trade agreement negotiations. Domestically, high‑frequency data and corporate announcements (order wins, FII/DII flows) could influence sentiment.
Overall, the Indian equity market has entered a seasonally strong period and technical indicators remain constructive. As long as global cues stay favourable and key support levels hold, the outlook for the next session remains cautiously optimistic with an upward bias.
