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Below the Quote on Daily Market Commentary for December 11th 2025 by By Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities traded higher on Thursday, with the Nifty snapping a three-session slide to end 0.5% higher (+140 points), after the U.S. Federal Reserve delivered a widely anticipated 25-basis-point rate cut—a move investors hope will help temper foreign outflows. Broader markets also strengthened, with the Nifty Midcap100 up 1% and the Smallcap100 rising 0.8%. However, volatility in the broader market may persist over the next few days, even as the headline Nifty remains within a wider range. Uncertainty around progress in India–US trade negotiations, continuous Foreign Institutional Investor selling, and the absence of major near-term triggers—with the Fed rate cut now behind—are likely to keep market sentiment somewhat lacklustre. Sectoral momentum was broad-based across autos, banks, metals, IT, and real estate, with all sectors ending in the green barring Nifty Media, which fell 0.9%. Nifty Auto and Nifty Metal each gained 1.1%, while Nifty Pharma rose 1%. On the policy front, the U.S. Federal Reserve cut interest rates on Wednesday but signalled limited scope for further near-term easing as policymakers await clearer trends in employment and inflation. Projections also revealed a divided stance among Fed officials regarding the rate trajectory for 2026 and beyond. FII remained net sellers for the 10th straight session, offloading equities worth rupees 1,651 crore on Wednesday, while DII’s infused 3752 crore. Key data to watch include US initial jobless claims later today and the India CPI and UK GDP print tomorrow.

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