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Key gauges end higher on foreign fund inflows
Dec-22-2025

Building on the previous session's rally, Indian equity benchmarks ended higher on Monday as investor sentiment remained positive amid foreign fund inflows and a rally in global markets on expectations of further monetary policy easing by the US Federal Reserve.

Some of the important factors in trade:

India's exports rebound in November on supply-chain shifts, US holiday restocking: The Global Trade Research Initiative (GTRI) has said that supply-chain realignments and inventory restocking ahead of the US holiday season helped India's exports rebound in November. 

India deepens Indo-Pacific engagement with conclusion of FTA with New Zealand: India has marked a major economic and strategic milestone in its engagement with the Indo-Pacific region, with conclusion of a comprehensive, balanced and forward-looking FTA with New Zealand, one of India’s fastest-concluded FTAs aligned with the national vision of Viksit Bharat 2047.

RBI's neutral stance to enable actions according to evolving situation: RBI Governor Sanjay Malhotra has said that a neutral monetary policy stance would give flexibility to the central bank to act according to the evolving macroeconomic conditions while voting for a 25 basis points cut in repo rate, along with five other MPC members. 

India’s forex reserves jump $1.68 billion to $688.94 billion: The Reserve Bank of India said that India's forex reserves jumped by $1.689 billion to $688.949 billion during the week ended December 12.

Global front: European markets were trading mostly in red amid thin volumes with investors largely refraining from making big moves ahead of upcoming Christmas holidays. Asian markets settled mostly higher as easing concerns about valuations of technology stocks and hopes of more monetary easing by the Federal Reserve following somewhat soft inflation data helped underpin sentiment.

Finally, the BSE Sensex rose 638.12 points or 0.75% to 85,567.48 and the CNX Nifty was up by 206.00 points or 0.79% to 26,172.40.       

The BSE Sensex touched high and low of 85,601.33 and 85,145.86 respectively. There were 25 stocks advancing against 5 stocks declining on the index. 

The broader indices ended in green; the BSE Mid cap index rose 0.86%, while Small cap index was up by 1.12%.

The top gaining sectoral indices on the BSE were TECK up by 2.04%, IT up by 1.99%, Capital Goods up by 1.65%, Industrials up by 1.33% and Metal up by 1.32%, while Consumer Durables down by 0.11% was the lone losing index on BSE.

The top gainers on the Sensex were Trent up by 3.56%, Infosys up by 3.06%, Bharti Airtel up by 2.32%, Tech Mahindra up by 2.09% and HCL Technologies up by 1.67%. On the flip side, SBI down by 0.60%, Kotak Mahindra Bank down by 0.37%, Larsen & Toubro down by 0.07%, Interglobe Aviation down by 0.06% and Bajaj Finance down by 0.05% were the top losers.

Meanwhile, the Global Trade Research Initiative (GTRI) has said that India and New Zealand should look to double bilateral trade in the next five years by lowering import taxes on some goods and working more closely in areas like agriculture. It stated more direct flights, easier visa rules and mutual recognition of professional qualifications, particularly in IT, healthcare, and aviation, would help increase trade in services. GTRI Founder Ajay Srivastava said ‘Both countries could set a target to double two-way trade within five years through early tariff relief on select products, business delegations and sectoral cooperation in agriculture, forestry, fintech and education.’ 

India and New Zealand are set to announce the conclusion of negotiations on a comprehensive free-trade agreement, talks for which began in 2010, then stalled in 2015 after nine rounds, and were revived again this year. The first round of talks held on May 5-9 this year. Srivastava said the pact will focus on reducing tariffs on goods, improving access in services and strengthening trade facilitation, while protecting policy space in politically sensitive areas, especially dairy. 

Moreover, he said under the deal, tariffs are expected to be eliminated or sharply reduced on many industrial products, textiles, engineering goods, fuels and some agricultural items, with sensitive farm products are expected to be protected through exclusion lists, tariff-rate quotas and long phase-out periods. He also said that service commitments are expected to deepen cooperation in IT, business services, education, and digital trade, along with measures on customs facilitation, standards, MSMEs, sustainability, and dispute settlement. In FY25, the bilateral trade was about $1.3 billion (India's exports $711.1 million and imports $587.1 million). New Zealand's average import tariff is just 2.3 per cent, compared with India's 17.8 per cent, and 58.3 per cent of New Zealand's tariff lines are already duty-free.

CNX Nifty touched high and low of 26,180.70 and 26,047.80 respectively. There were 38 stocks advancing against 12 stocks declining on the index.    

The top gainers on Nifty were Trent up by 3.86%, Shriram Finance up by 3.67%, Wipro up by 3.10%, Infosys up by 2.89% and Bharti Airtel up by 2.09%. On the flip side, HDFC Life Insurance down by 0.71%, Tata Consumer Product down by 0.64% and SBI down by 0.59%, Kotak Mahindra Bank down by 0.57% and Cipla down by 0.45% were the top losers.

European markets were trading mostly in red; UK’s FTSE 100 decreased 37.43 points or 0.38% to 9,859.99 and France’s CAC fell 23.38 points or 0.29% to 8,128.00, while Germany’s DAX gained 71.7 points or 0.3% to 24,360.10.

Asian markets settled mostly higher on Monday as traders await Tuesday’s release of the US third-quarter Gross Domestic Product that will offer insight into economic health and the timing of the Federal Reserve’s next rate moves. Japan’s Nikkei climbed and surpassed the 50,000-point mark, while the yen hovered near an 11-month trough against the US dollar in the wake of the Bank of Japan's decision to raise rates by a quarter of a point to a three-decade high of 0.75%. The market rally was also driven by Wall Street’s strong finish last Friday due to robust technology earnings and easing concerns of a tech bubble. Chinese and Hong Kong shares gained, supported by surges in Hainan shares after China last week started operation of the Hainan Free Trade Port in a landmark move signalling China’s commitment to opening-up. Sentiments improved further after data showed ⁠China's private fund sector expanded to a record 22.1 trillion yuan ⁠in November, aided by strong flows into equities.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,917.36

26.92

0.69

Hang Seng

25,801.77

111.24

0.43

Jakarta Composite

8,645.84

36.29

0.42

KLSE Composite

1,671.29

5.39

0.32

Nikkei 225

50,402.39

895.18

1.81

Straits Times

4,610.29

40.51

0.89

KOSPI Composite

4,105.93

85.38

2.12

Taiwan Weighted

28,149.64

453.29

1.64
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