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Foreign fund outflows drag markets lower in passing week
Dec-12-2025

Indian equity benchmarks ended the passing week with losses amid foreign fund outflows. Investors sentiments were fragile amid sustained weakness in the rupee. Indian rupee hit fresh record lows of Rs 90.56 against US dollar. However, downside remained capped after the U.S. Federal Reserve’s announcement of a 25-basis-point rate cut and renewed hopes over India-US trade deal.

Some of the major developments during the week are:

India's agriculture sector growth likely to be lower at 4% in FY26: Member of government think tank Niti Aayog, Ramesh Chand has said that India's agriculture sector growth is likely to be lower at 4 per cent in FY26 compared to the rate of 4.6% recorded in the previous fiscal.

Steady improvement in health and operations of banking sector in 2025: The RBI Governor Sanjay Malhotra has said that while there has been steady improvement in the health and operations of the banking sector in 2025, banks must avoid complacency and remain vigilant in a dynamic environment.

Automobile retail sales sustain momentum in November: FADA has said that automobile retail sales sustained momentum post festive period with registrations rising 2% Y-o-Y in November 2025 led by robust demand for passenger vehicles, three wheelers, commercial vehicles and tractors.

PSBs write off Rs 6.15 lakh crore loans in five and a half years: Minister of State for Finance Pankaj Chaudhary has said that PSBs have written off loans worth Rs 6.15 lakh crore during the last five financial years and the current financial year till September 30, 2025 (provisional data).

Govt meets target to reduce logistics cost to 9% of GDP: Union transport minister Nitin Gadkari has said that the government has met the target to reduce logistics cost to 9 per cent of Gross Domestic Product (GDP) from as high as 16 per cent due to good roads.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex slipped 444.71 points or 0.52% to 85,267.66 during the week ended December 12, 2025. The BSE Midcap index lost 140.29 points or 0.30% to 46,477.51, while Smallcap index slipped 202.56 points or 0.40% to 50,890.67. On the sectoral front, S&P BSE Consumer Durables was down by 894.52 points or 1.47% to 59,934.00, S&P BSE Capital Goods was down by 865.52 points or 1.28% to 66,781.85, and S&P BSE TECK was down by 204.25 points or 1.09% to 18,552.15 were the top losers, while S&P BSE Metal was up by 649.20 points or 1.90% to 34,896.58,S&P BSE Power was up by 15.59 points or 0.24% to 6,516.65, and S&P BSE Oil & Gas was up by 29.45 points or 0.11% to 27,976.91 were the few gainers on the BSE.

NSE movement for the week

The Nifty slipped 139.50 points or 0.53% to 26,046.95. On the National Stock Exchange (NSE), Nifty IT was down by 428.90 points or 1.11% to 38,274.75, Bank Nifty was down by 387.25 points or 0.65% to 59,389.95, Nifty Mid Cap 100 decreased 311.30 points or 0.51% to 60,283.30 and Nifty Next 50 lost 200.15 points or 0.29% to 68,509.70.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 62,780.39 crore and gross sales of Rs 68,915.72 crore, leading to a net outflow of Rs 6,135.33 crore. They also stood as net sellers in the debt segment with gross purchases of Rs 10,217.55 crore against gross sales of Rs 17,271.86 crore, resulting in a net outflow of Rs 7,054.31 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 380.05 crore and gross sales of Rs 214.08 crore, leading to a net inflow of Rs 165.97 crore.

Industry and Economy

The Asian Development Bank in its latest Asian Development Outlook has upgraded India’s growth projection by 0.7 percentage points to 7.2% for fiscal year ending March 2026 from 6.5% projected in September release. It noted that growth will be driven primarily by robust domestic consumption supported by recent tax cuts. It said GDP grew faster-than-expected 8.2% in second quarter of current fiscal, leading to an average growth of 8% in the first half of the fiscal year. The strong growth is attributable to robust expansion of the manufacturing and services sectors on the supply side and consumption and investment on the demand side. Exports remained resilient due to frontloading ahead of elevated US tariffs and diversification to non-US markets. 

Outlook for the coming week

In the passing week, Indian markets ended in red amid concerns over sustained foreign fund outflows and the ongoing India-US trade talks.

On the economic front, market-participants would be eyeing the data of Wholesale Price Index (WPI) and Balance of Trade data, which scheduled to be released on December 15. HSBC Composite PMI Flash, HSBC Manufacturing PMI Flash, HSBC Services PMI Flash data going to be out on December 16.

On the global front, investors will be eyeing macro-economic reports from world’s largest economy, United States, starting with NY Empire State Manufacturing Index on December 15, S&P Global Composite PMI Flash, Building Permits Final on December 16, Core Inflation, Initial Jobless Claims, Philadelphia Fed Manufacturing Index, Kansas Fed Composite Index on December 18, Fed Balance Sheet, Baker Hughes Oil Rig Count on December 19.

Top Gainers 

  • Hindalco Industries up by 5.09% was the top gainer on Nifty for the week - Hindalco Industries gained investors’ attention as prices of copper surged on account of tight global supplies, strong demand driven by the green energy transition and infrastructure. Further, Aluminium rose due to production disruptions in various regions.
  • Grasim Industries up by 3.89% was another top gainer on Nifty for the week - Grasim Industries' arm -- Aditya Birla Renewables (ABREN) finalized investment worth up to Rs 3,000 crore from Global Infrastructure Partners (GIP), part of BlackRock, one of the world’s leading infrastructure investors. The GIP investment translates into an enterprise value of around Rs 14,600 crore for ABREN.

Top Losers 

  • Interglobe Aviation (IndiGo) down by 10.60% was the top loser of the week on Nifty - IndiGo continued to face selling pressure as Civil Aviation Minister asked for 10% cut in planned IndiGo flights to help restore order, following the last week’s disruptions, which resulted into widespread flight cancellations across major airports. Besides, Directorate General of Civil Aviation intensified scrutiny of the company. 
  • Hindustan Unilever (HUL) down by 8.19% was another top loser of the week on Nifty - HUL traded lower post demerger of its Ice Cream Business into an independent listed entity -- Kwality Wall’s (India).  Meanwhile, NITI Aayog’s Atal Innovation Mission and HUL have joined forces to launch a nationwide start-up acceleration programme aimed at advancing India’s transition to a circular economy.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 26,202.60 on December 8 and lowest level of 25,693.25 on December 11. On the last trading day, the Nifty closed at 26,046.95 with weekly loss of 139.50 points or 0.53 percent. For the coming week, 25,759.27 followed by 25,471.58 are likely to be good support levels for the Nifty, while the index may face resistance at 26,268.62 and further at 26,490.28 levels.

US Market

The U.S. markets traded higher during the week as Federal Reserve announced its decision to cut interest rates by quarter point. The Fed said it decided to lower target range for the federal funds rate by 25 basis points to 3.50 to 3.75 percent.

Some of the major developments during the week are:

U.S. weekly jobless claims rebound more than expected: Initial jobless claims rose to 236,000 in the week ended December 6th, an increase of 44,000 from the previous week's revised level of 192,000.

Job openings in U.S. edge slightly higher in October: The Labor Department said job openings crept up to 7.670 million in October from 7.658 million in September.

U.S. leading economic index falls 0.3% in September: The Conference Board said its leading economic index fell by 0.3 percent in September, matching an upwardly revised dip in August.

Trade deficit in U.S. unexpectedly narrows in September: The Commerce Department said the trade deficit shrank to $52.8 billion in September from a revised $59.3 billion in August.

U.S. wholesale inventories climb in September: The Commerce Department said wholesale inventories climbed by 0.5 percent in September after edging down by a revised 0.1 percent in August.

European Market

European markets garnered some gains during the passing week, as the rate cut move by the Federal Reserve outweighed concerns about valuations of AI-related stocks.

Some of the major developments during the week are:

Eurozone sentix investor confidence improves in December: The survey results from the behavioral research institute Sentix showed that the investor confidence index rose to -6.2 in December from -7.4 in November. 

German trade surplus grows in October: The Destatis reported that exports posted a monthly increase of 0.1 percent in October, though slower than the 1.5 percent recovery in September.

German industrial output posts stronger-than-expected growth: The Destatis reported that industrial output logged a monthly growth of 1.8 percent in October after posting a revised 1.1 percent rise in September.

Italy industrial output falls more than forecast: The figures from the statistical office ISTAT showed that industrial production decreased 1.0 percent month-on-month in October, reversing September's 2.7 percent increase. 

Swedish GDP falls 0.3% in October: Gross domestic product decreased 0.3 month-on-month in October, following a 0.1 percent fall in the previous month.

Asian Market

Asian markets traded mostly in red during the passing week, as markets digested the Fed's widely expected rate cut, the forward guidance for 2026 and beyond, as well as the extent of dissent in the FOMC decision.

Some of the major developments during the week are:

Japan industrial output rises more than estimated: Japan's industrial production climbed 1.5% monthly in October, slower than the 2.6% recovery in September. In the initial estimate, industrial output showed an increase of 1.4%. 

Japan producer prices rise 0.3% in November: Producer prices in Japan were up 0.3% on month in November. That was in line with expectations and down from the upwardly revised 0.5% in October (originally 0.4%).

China's CPI up 0.7% in November: China's consumer price index (CPI) rose 0.7% on a yearly basis in November, matching expectations and faster than the 0.2% increase in October.

China producer prices drop more than expected: China’s producer prices fell 2.2% year-on-year in November 2025, slightly accelerating from a 2.1% decline in October and marking the 38th consecutive month of contraction.

China's exports grow 5.9% in November: China’s exports reached $330 billion in November, up by 5.9% year on year, reversing a 1.1% contraction posted in October, beating expectations. While, imports for the month expanded by 1.9% to $218.7 billion.
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