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Below the Quote on Weekly Market Outlook 15th Decmeber 2025 from Vinod Nair, Head of Research at Geojit Investments Limited

"Indian equities opened the week on a subdued note, slipping below 26,000 amid caution ahead of the U.S. Federal Reserve policy decision, sustained FII outflows, continued rupee weakness, and uncertainty surrounding U.S.–India trade negotiations. Global risk-off sentiment was further heightened by rising Japanese bond yields and expectations of a BoJ rate hike in December. Sectoral performance was mixed, with being IT under pressure while PSU banks, real estate, and consumer durables witnessed selective buying.

Market sentiment improved sharply later in the week after the Fed announced a 25-bps rate cut, easing liquidity concerns and fuelling hopes of renewed FII inflows. With supportive central bank policies, steady domestic investments, and optimism over trade progress despite unclear timelines, benchmarks closed the week on a strong note.

Looking ahead, markets are likely to maintain a positive bias but remain sensitive to rupee stability, FII flow trends, and clarity on trade agreements, alongside global cues from the BoJ, ECB, and BoE. India’s November CPI, due later today, is expected to remain within the RBI’s comfort zone, reinforcing policy stability, while robust DII inflows continue to cushion volatility. Risks persist from currency fluctuations and global trade uncertainties; however, improving earnings visibility and liquidity support provide a constructive backdrop and downside protection."

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