WPI inflation, India-US trade talks, Rupee movement likely to drive market next week
After benchmarks ended the week on a strong note, Indian stock markets are expected to take cues next week from a mix of key domestic and global factors, including wholesale price inflation data, developments in India–US trade talks, movements in the rupee, and continued foreign investor activity.
On Friday, the Sensex rose 450 points, or 0.53 per cent, to close at 85,267.66, while the Nifty gained 148 points, or 0.57 per cent, to settle at 26,046.95.
Broader markets outperformed the benchmarks, with the BSE Midcap index jumping 1.14 per cent and the Smallcap index rising 0.65 per cent.
Investor wealth also saw a sharp rise during the session. The total market capitalisation of BSE-listed companies climbed to over Rs 470 lakh crore, up from Rs 466.6 lakh crore in the previous session, adding more than Rs 3 lakh crore in a single day.
Looking ahead, inflation data is expected to be one of the key triggers for the market next week. The Ministry of Commerce and Industry is scheduled to release wholesale price inflation (WPI) data for November on December 15.
Developments on the India-US trade front will also remain in focus. According to multiple reports, India and the United States have agreed to continue constructive and forward-looking engagement after two days of talks between an Indian delegation and a US team led by Deputy US Trade Representative Rick Switzer.
The discussions included exchanges on key trade issues and ongoing negotiations aimed at finalising a mutually beneficial bilateral trade agreement, which could have long-term implications for trade-sensitive sectors.
The movement of the rupee is another important factor to watch. Persistent foreign investor outflows, uncertainty over the India-US trade deal, and strong dollar demand from importers have kept the rupee under pressure.
Foreign investor activity continues to be a concern for the markets. Foreign portfolio investors have remained net sellers throughout 2025 and are close to recording the second-highest number of net selling days in the last two decades.
Commenting on the Nifty outlook, experts said that on the upside, immediate resistance is placed at 26,200, followed by 26,400 and 26,500.
“On the downside, support is seen at 25,900 and then 25,800, with a break below 25,700 likely to attract additional selling pressure,” they added.
