Indian equities are set to open the December 15 session on a cautious note, taking cues from a broad sell off across global markets. Weakness on Wall Street and across Asia has weighed on early sentiment, as investors reassess stretched valuations in technology stocks. That said, market participants believe the downside could be limited, with signs of rotation emerging from broader markets into large cap stocks.

Early indicators pointed to a soft start. At 7.50 am, GIFT Nifty was trading at 26,057, down 82 points or 0.3 percent, signalling a likely negative opening for domestic benchmarks.

Global markets in focus

Overnight, US markets closed sharply lower, led by losses in technology heavy stocks. The Nasdaq Composite fell 1.6 percent, extending the recent tech led pullback. The S and P 500 slipped about 1 percent, a day after touching record highs, while the Dow Jones Industrial Average declined 0.5 percent, reflecting its lower exposure to technology names.

Investor risk appetite has moderated amid growing scepticism over whether technology stocks can continue to justify elevated valuations and aggressive spending on artificial intelligence. This has also weighed on Asian markets, which have been strong outperformers this year but remain heavily exposed to the global technology supply chain.

Asian equities opened lower in the final full trading week of 2025, as concerns over earnings visibility for technology companies and their AI related capital expenditure dampened sentiment across the region.

Spotlight on ICICI Pru AMC

Back home, investor attention will be on the ICICI Prudential AMC IPO, which enters its second day of subscription today. The issue is expected to see healthy demand, given the fund house’s wide product offering across equity, debt, hybrid, passive and thematic strategies, with a total of 143 schemes.

Rupee weakness a worry

The rupee will also remain in focus after extending its decline to 90.55 against the US dollar, slipping past its previous all time low of 90.47. Analysts warn that sustained weakness in the currency could add pressure on the current account deficit and dampen foreign capital inflows into Indian equities.

Trump to pick Fed chair

On the global policy front, comments from US President Donald Trump late on Friday drew attention. Trump said Kevin Hassett is the frontrunner to succeed Jerome Powell as Federal Reserve chair when his term ends in May, while adding that Kevin Warsh is also under consideration. The appointment is being closely watched for its implications on monetary policy next year.

Institutional activity and outlook

In the previous session, foreign institutional investors sold Indian equities worth Rs 1,114 crore, while domestic institutional investors stepped in as buyers, purchasing shares worth Rs 3,869 crore, exchange data showed.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said it would be difficult for FIIs to sustain heavy selling and maintain large short positions, especially in the backdrop of strong SIP inflows and improving earnings prospects. He noted that persistent selling when India’s growth outlook remains healthy is unlikely to be a sustainable strategy and could eventually lend support to the market.

He added that factors such as rupee depreciation, continued FII selling, delays in the US India trade deal and the ongoing AI trade dynamics are temporary headwinds and should ease over time.

Technical outlook

Nifty staged a notable recovery toward the end of the week, establishing a firm demand zone; however, the broader trend remains delicate as the index continues to form lower highs, indicating persistent supply pressure around 26,200. The 26,000–25,900 band emerges as a crucial support area, having previously acted as a strong resistance zone.

"A significant open interest accumulation of nearly 1.19 crore call contracts at the 26,500 strike positions this level as a major overhead resistance. Conversely, about 1.36 crore put contracts at the 26,000 strike confirm a robust support base," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.