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Below the Quote on Daily Market Commentary for December 09th 2025 by By Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities traded weaker on Tuesday, with Nifty recouping part of its early losses but still closing 0.5% lower, down 121 pts. The index extended the previous session’s slide as investors stayed cautious ahead of the US Fed rate decision and lingering uncertainty around a potential US–India trade agreement. Sentiment was further pressured by reports that US President Trump may consider imposing new tariffs on Indian rice, signalling that trade negotiations remain unresolved. After an extended spell of weakness, the broader markets recovered, offering relief and easing pressure on the headline indices. The Nifty Midcap100 gained 0.3% and the Smallcap100 advanced 1.1%, cushioning the impact of global uncertainties. Sectoral trends were mixed. Nifty PSU Bank rose 1.2% followed by Nifty Realty at +0.9%, indicating rotation into domestic-facing themes. On the flip side, Nifty IT fell 1.2%, extending losses for the second day on profitbooking, while Nifty Auto slipped 0.6%. India’s life insurance industry posted its strongest growth in nearly three years, with individual WRP up ~27% YoY in Nov’25. Private players’ share rose to ~75%, supported by GST-driven affordability, focus on traditional products, and wider distribution expansion, suggesting sustained momentum ahead. Key economic data due today include US JOLTS job openings and China CPI. Tomorrow’s US Fed interest rate decision remains the main catalyst for global markets. We expect the headline indices to remain range-bound in the near term, with stock-specific action and the broader market recovery likely to continue. Markets will track global cues while awaiting the Fed’s policy stance for further direction.

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