The rupee has depreciated by roughly 5.22 percent against the US dollar this year, making it Asia’s worst-performing currency in 2025
The Nifty index showed losses for the third week, but momentum remains positive. Midcap and smallcap indices closed higher, signaling potential market recovery
The Foreign Institutional Investors (FIIs) extended their buying on third consecutive Session on December 19 as they bought equities of over Rs 1800 crore, while Domestic Institutional Investors (DIIs) purchased equities of Rs 5722 crore on the same day.
With 125 bps of rate cuts, RBI shall use other tools in its arsenal to ensure transmission of lower rates, according to Raghvendra Nath.
Stocks to Watch, 22 December: Stocks like Sudeep Pharma, IRB Infrastructure Developers, Krishna Institute of Medical Sciences, Ge Vernova T&D India, Granules India, Soma Textile, Tata Chemicals, Indian Hotels Company, Emmvee Photovoltaic Power, Jupiter Wagons, Fortis Healthcare, KEC International, and Allcargo Terminals will be in focus on December 22.
In the truncated week starting December 22, the market is expected to stay positive but cautious, with focus on US quarterly GDP and PCE data, China’s NPC Standing Committee meeting, rupee movement, FII flows, and the VIX.
Reliance Infrastructure, Roto Pumps, Lloyds Enterprises, Bliss GVS Pharma, Gandhar Oil Refinery India, Rain Industries, Antony Waste Handling Cell, DCX Systems added more than 15 percent.
From a technical standpoint, the prevailing chart structure of both sectors - banking and IT - suggests that they are well-positioned to continue providing support to the frontline indices, making them the likely drivers of any near-term rally, Sudeep Shah said.
The probability of a 15–20 percent rally exists, but it is not a default. The more dependable strategy is to focus on breadth of earnings, balance-sheet strength, and valuation discipline rather than targeting a specific index number, said Anirudh Garg.
With the upcoming holiday week likely to see thinner trading volumes, price action may be subdued.
While silver has taken the spotlight recently, the broader setup indicates that gold may be preparing for a catch-up phase, supported by both fundamentals and technical indicators.
Sonal Minhas believes that high quality banks/NBFCs with MSME, personal and corporate credit exposure should grow well from hereon.
In the last three days, Indian rupee has appreciated 1.04 percent against the US dollar, according to the Bloomberg data.
In markets underpinned by strong and stable fundamentals, underperformance is temporary. Eventually, fundamentals take over. When is the big question
FIIs extended their buying on second day on December 18 as they bought equities of nearly Rs 600 crore, while DIIs bought equities of Rs 2,700 crore on the same day
While global risks and sector-specific challenges remain, the broader economy today is supported by stronger balance sheets, healthier financial system plumbing, and greater policy flexibility than in past cycles, said Anil Rego.
Stocks to Watch, 19 December: Stocks like HCL Technologies, Bharti Airtel, GPT Infraprojects, Swiggy, Waaree Energies, Premier Energies, Niraj Cement Structurals, Biocon, Arisinfra Solutions, Lupin, InterGlobe Aviation, Mishra Dhatu Nigam, Shree Digvijay Cement Company, Ola Electric Mobility, and ICICI Prudential AMC will be in focus on December 19.
Analysts are divided on whether the rupee’s depreciation will accelerate to around six percent annually 2026 onwards or remain gradual, while some suggest the rupee may appreciate in the next year.
According to Nilesh Shah of Kotak Mahindra AMC, FII flows are likely to return in 2026 as global rate cycles ease, US growth softens, and doubts grow around overhyped AI trades elsewhere.
After remaining net sellers for the last 14 sessions, the FIIs turned net buyers on December 17 as they bought equities of Rs 1,171 crore, while DIIs bought equities of Rs 768 crore on the same day
Stocks to Watch, 18 December: Stocks like HCL Technologies, Cyient, Titagarh Rail Systems, Antony Waste Handling, GMR Power and Urban Infra, KP Energy, Mahindra Lifespace Developers, ISGEC Heavy Engineering, GE Vernova, Ola Electric, One 97 Communications Paytm, AstraZeneca Pharma, and Denta Water and Infra Solutions will be in focus on December 18.
While markets were buoyant this year, volatility is never far away
The practice of banning commodities trading damages more than just immediate stakeholders—it undermines the credibility and trustworthiness of Indian exchanges and markets
State-run banks were spotted offering dollars aggressively, most likely on behalf of the Reserve Bank of India, three traders told Reuters
This is the domestic currency's biggest single-day gain in seven months